According to close sources, Tesla and Hertz are having disagreements over how fast Tesla can deliver the 100,000 electric cars that the rental company has ordered.
Last week, Hertz publicly announced that they have ordered 100,000 electric vehicles from Tesla. In addition, they also announced that they have partnered with Uber to provide 50,000 of these cars to Uber drivers with an option for an additional 100,000 cars.
The news for the order has sent Tesla’s stock surging significantly until CEO of Tesla, Elon Musk, posted a tweet that explained that they haven’t yet “signed” a contract with Hertz.
This comment from Elon Musk brought significant confusion since the original announcement from Hertz explicitly stated that the order has been placed.
According to Wall Street Journal, the ongoing dispute between Hertz and Tesla is regarding the delivery timeline.
“The two companies are hammering out details of a deal that would specify the timing of deliveries, the people said. Tesla is still expected to supply the 100,000 vehicles at the list price to Hertz, with timing of the deliveries being the key issue, the people said.”Wall Street Journal
Tesla has started deliveries of Model 3 cars to Hertz. However, Hertz in their original announcement, said that they expected all 100,000 electric cars to be delivered by the end of 2022.
That comments from Hertz didn’t sit right with key executives at Tesla. Tesla seems like is not planning to give Hertz any special treatment. According to Tesla, Hertz is going to pay the same price as regular customers, and it will receive the deliveries within Tesla’s regular time schedule, with no special treatment.