Elon Musk Wipes $42 Billion Off Tesla Value With A Single Tweet
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It's been a big week for Elon Musk, not only has he potentially pledged $6 billion of his Tesla shares to help end world hunger, he also managed to wipe $42 billion off that the value of the company with a single tweet.
Honestly, imagine that kind of money. It's almost impossible, right?
Anyway, one thing that might have passed some casual observers of Musk by is that Tesla was also on the brink of signing up a massive deal with car rental company Hertz.
Now, Hertz announced that they'd be buying 100,000 Tesla vehicles by the end of 2022, as CEO Mark Fields said: "Electric vehicles are now mainstream, and we've only just begun to see rising global demand and interest.
"The new Hertz is going to lead the way as a mobility company, starting with the largest EV rental fleet in North America and a commitment to grow our EV fleet and provide the best rental and recharging experience for leisure and business customers around the world."
As the share price ballooned upwards, potentially because of the aforementioned announcement, Musk not only cemented his place as the richest man ever to inhabit the earth, but also led to Tesla's value passing the $1 trillion mark.
It's only the sixth company ever to do so, can you guess the others?
However, Tesla's largest ever order was put into question by Musk himself, who tweeted that 'no contract' has been signed yet.
That wiped as much as four percent - or around $42 billion - off their share prices.
Of the initial price growth, Musk said: "If any of this is based on Hertz, I'd like to emphasize that no contract has been signed yet.
"Tesla has far more demand than production, therefore we will only sell cars to Hertz for the same margin as to consumers."
You're welcome!
- Elon Musk (@elonmusk) November 2, 2021
If any of this is based on Hertz, I'd like to emphasize that no contract has been signed yet.
Tesla has far more demand than production, therefore we will only sell cars to Hertz for the same margin as to consumers.
Hertz deal has zero effect on our economics.
Since then, Hertz has said that the 'initial order' of 100,000 vehicles has been made, and deliveries have started.
Hertz's Director of Communications Lauren Luster said: "As we announced last week, Hertz has made an initial order of 100,000 Tesla electric vehicles and is investing in new EV charging infrastructure across the company's global operations.
"Deliveries of the Teslas already have started. We are seeing very strong early demand for Teslas in our rental fleet, which reflects market demand for Tesla vehicles."
We'll just have to see if Musk comes back with anything on that front.
Given that he's one of the most influential people on Twitter when it comes to global markets, his shareholders will be hoping he holds his peace.
