“Zero effect on Tesla:” Musk says demand is so high no contract needed for Hertz
Elon Musk says the demand for Tesla electric cars is “much higher” than the electric vehicle maker, and the agreement to sell up to 150,000 electric Model 3s to rental car giant Hertz (including 350 will come to Australia) has “no effect” on its economy. Indeed, no contract has been signed between the two companies.
In a tweet on Monday (UST), Musk responded to the news that Tesla jumped 9% to close at a record high over US $ 1,200 (A $ 1,594) by saying, “You are welcome!” It was the second time in a week that Tesla had added the value of VW – twice the value of Ford – in a single day.
“If this is all based on Hertz, I want to point out that no contracts have been signed yet, ”Musk tweeted.
“Tesla has a lot more demand than production, so we will only sell cars to Hertz with the same margin as to consumers. The Hertz agreement has no effect on our economy.
Tesla stock closed at US $ 1,208.59 (A $ 1,160 5.43) in the United States on Monday, breaking through the after-hours US $ 1,220 mark as its market cap hit 1.2 trillion US dollars.
Tesla’s recent rally follows a record third quarter of profitability and even a stock split in August 2020 in a year that saw its market capitalization surpass that of big oil companies ExxonMobil, Shell and BP combined.
While this is all based on Hertz, I would like to point out that no contract has yet been signed.
Tesla has much more demand than production, so we will only sell cars to Hertz with the same margin as to consumers.
The Hertz agreement has no effect on our economy.
– Elon Musk (@elonmusk) November 2, 2021
After delivering a record 241,300 electric cars in the third quarter, Tesla is set to open two more factories in Berlin and Texas and said it aims to maintain the momentum of its growth with an increase of 50 % of deliveries each year to reach 20 million per year.
It’s on track to achieve this in 2021 with more than 625,000 deliveries by the end of September, and Tesla could achieve it more easily than expected – if, as Musk’s post implies, production (and notorious problems with 2021 supply chain) may follow.
Research from investment firm Ark Invest suggests that sales of electric vehicles are so high that clean transportation technology is breaking the traditional adoption curve.
“Unlike a typical S-curve, since 2013, growth in global electric vehicle sales has accelerated from 60% to around 90% +, as shown below,” wrote Sam Korus of Ark Invest in a commentary. note by e-mail.
The analyst noted a few adoption factors at play here, centered around lowering the cost of manufacturing batteries, allowing cheaper prices for electric cars, which in turn attracts a larger buying audience.
Once EV sticker prices drop below the US $ 25,000 mark, the adoption curve could become more of an adoption ski jump. Ark Invest predicts this will happen as early as 2023, which incidentally is when Tesla signaled the introduction of a budget electric sedan.
By then, as The Driven noted in August, Tesla will have taken on the ubiquitous Toyota Camry – and if Ark Invest’s sticker price comparison below is any indication, the ‘California cockroach’ will have it. will indeed be exceeded.
First, cell constraints must be addressed; a factor that is holding back the introduction of the Tesla Semi and the revival of the Tesla Roadster.
In the meantime, the adoption of the Tesla Model 3 as Hertz’s zero-emission tank will cause more butt in the seats, only accelerating the transition to electric vehicles.
Bridie Schmidt is the senior reporter for The Driven, sister site of Renew Economy. She has been writing about electric vehicles since 2018 and has a keen interest in the role zero-emission transportation needs to play in sustainability. She has participated in podcasts such as Download This Show with Marc Fennell and Shirtloads of Science with Karl Kruszelnicki and is a co-organizer of the Northern Rivers Electric Vehicle Forum. Bridie also owns a Tesla Model 3 and offers it for rent at evee.com.au.