TeslaElon Musk, CEO of Tesla Motors Inc. stated Monday that his company is yet to enter into a rental agreement with a car company. Hertz. Musk seems to have contradicted Hertz’s Oct. 25 announcement.

It is well-known that Tesla hit a $1 trillion market capIt was the first time I had done this a week after. Hertz announcedIt would increase its battery-electric vehicle fleet by placing an initial order for 100,000 Teslas before the end 2022.

Commercial featuring Tom Brady (seven-time Super Bowl Champion), alongside two parked Tesla Model 3 electric sedans. HertzGarage, which was accompanied by the announcement.

CNBC reached Out to Tesla and Hertz Monday Night to Get More Information Before publication, neither company responded.

Interim Hertz CEO Mark Fields last week said the rental company started talking with Tesla “many months ago” about the purchase of the vehicles. He called it a “great partnership” that was part of Hertz’s plan to help rental businesses manage large EV fleets.

It’s all about the relationships. From that standpoint, the Tesla relationship is very important to us, but … we also have relationships with all of the automakers, and we want to help them as they introduce their electrified vehicles,” Fields said during an interview on CNBC’s “Squawk Box.”

Fields, formerly CEO of Ford, described the move as a “strategic discussion” to help automakers that started with Tesla and will continue with other companies. “We’ve done that with Tesla and our intent is to do that with all of the automakers,” he said.

When automakers sell large quantities of vehicles to daily rentals fleets, investors have always frowned on them. Because cars and trucks are often sold to rental fleets at a significant discount, such deals reduce inventories and allow for increased vehicle delivery. 

But, analysts and shareholders liked the idea that Tesla would sell 100,000 fully electric cars to Hertz. It was seen as a signal that more people were interested in battery-electric vehicles.

Dan Ives, a Wedbush Securities analyst wrote a bullish note on Tesla Oct. 26,

“The Hertz deal we believe will be viewed as a tipping point for the EV industry as this 100k Model 3’s/$4 billion+ deal for Tesla speaks to more mainstream adoption for EVs as today only 2% of autos in the US are EV driven compared to 10%+ in China with rapid growth on the horizon. This is the most significant transformation in the automotive industry since 1950. More consumers will be taking the EV route over the next few years.

Tesla shares have risen around 33% in the three months since its Oct. 22 close before the announcement.

Musk claimed last week it was “strange”, that the news affected Musk’s company valuation by so many.

Musk owns 20% or more of Tesla. His net worth has increased with Tesla’s share prices. Musk is the richest person in the world.

The company has also benefited from the generosity of other shareholders, both inside and outside. long-time bulls like Ron BaronTesla employees with vested and earned options, and Musk fellow board members

Hertz stated that the order would account for half of all the available cars two days after it was announced. UberDrivers to rent by 2023This is. According to the company, the program can be expanded upon success to include 150,000 vehicles in the following three years.

Hertz “pointed out that these ambitions could be affected by factors outside of its control, such as semiconductor chip shortages or other constraints”

During the burgeoning coronavirus pandemic, Hertz filed for bankruptcy protection — but as travel rebounded somewhat and demand for rental vehicles picked up, investors from Knighthead Capital Management and Certares Management said they would take over the company.