Hertz orders 100k Model 3s
HTZZ up 10%, TSLA up 12.5% for the day. TSLA's stock is at $1000 now, and the company is worth $1t, I think.
Worth $4.2b in revenue for Tesla, the largest EV order ever.
Projections for how many Telsas are going to be produced in 2030 are up in numbers quite a bit.
Investors didn't see this coming really. Many were shorting TSLA. Tesla passed through periods where no one knew if they'd be able to fund themselves. Tesla traded on hype or something, but it's now starting to trade on fundamentals.
They only have like 1 or 2% of market share in countries they sell to.
UPDATE days later. Tesla is up a lot more. Someone asked Musk about if he was selling to Hertz at a discount, and Musk tweeted Tesla had more demand than supply, and wasn't selling to Hertz at a discount, and so the agreement (he stressed nothing had been signed) meant nothing to Tesla's economics. TSLA was down like 4% on a day when basically everything was down.
"Lead sales are ugly sales," is something you hear people say sometimes. Automakers are selling fleet versions (often base models with maybe a few extras added on) in large numbers at a discount, and it's of course good for auto-makers but not that good.
However, other things come into play. Hertz would have to invest in infrastructure and it would create a lock-in effect with buying and servicing Teslas.