Tesla CEO Elon Musk has confirmed Hertz paid full price for its massive 100,000 Model 3 fleet, with no discounts.
Responding to a tweet earlier on Monday evening, Musk said, “to be clear, cars sold to Hertz have no discount. Same price as to consumers.”
To be clear, cars sold to Hertz have no discount. Same price as to consumers.
— Elon Musk (@elonmusk) October 26, 2021
Sources told Bloomberg the deal was worth roughly $4.2 billion USD. We know the Hertz website is already listing Model 3 Standard Range vehicles for rent in select U.S. cities, as seen in the screenshot above (Los Angeles). These Tesla Model 3 configurations note 418km of range (259 miles), which means they are Standard Range Plus rear-wheel drive versions.
The Model 3 Standard Range Plus starts at $44,990 USD. Multiply that by 100,000 cars and you get $4.49 billion as what would be the full retail price of these vehicles.
Currently, Model 3 Standard Range Plus versions are seeing estimated delivery dates of June 2022. Many existing soon-to-be owners lamented recent price increases and far-out delivery dates might have been caused by this huge Hertz order.
Tesla’s Fremont factory in California has the ability to produce 500,000 Model 3 and Model Y vehicles combined annually, as of its Q3 2021 earnings report. It remains to be seen if Tesla will export Model 3 vehicles from Giga Shanghai to help meet Hertz’s retail order for its rental cars, as the latter is now producing more vehicles than its Fremont plant.
After news of the Hertz deal hit the media, it sent Telsa’s stock skyrocketing on Monday to new all-time highs, closing at $1,024.86, up 12.66% for the day and market cap of $1.01 trillion. After hours, Tesla is trading at $1,030, up 0.5%.
