Elon Musk tempered Tesla’s stock rally somewhat days after Hertz made its announcement, tweeting that no contract had been signed and that the EV maker had far more demand than production. Tesla’s market capitalization was $616.2 billion at the close of trading Monday.
Hertz’s filing provides some clues as to why it’s added far fewer Teslas than the car renter said it would order. The first risk factor the company lists pertaining to its EV initiatives is that the strategy depends on the “ability to secure adequate vehicle supply within the time frame we, and our customers, expect.”
Another factor that may have come into play: Tesla raised prices on several occasions last year, which might have made acquiring cars costlier than Hertz expected. That’s less of an issue after Tesla slashed prices across its lineup last month.
