HertzSays TeslaWhile Tesla CEO Elon Musso tweeted Monday night, that Tesla has started to deliver cars into its rental fleet fleet, it has not signed any contract.

Musk said on Twitter that he wanted to “emphasize” the importance of this. no contract has been signed yet.”He stated that the Hertz deal had no effect on automaker’s economy, since it would “only sell automobiles to Hertz at the same margin to consumers.”

Lauren Luster (director of communications at Hertz) declined to comment on the details, but stated that the company is “on track” with all aspects of the agreement. announcement last weekBy 2022, 100,000 Tesla electric cars will be available.

In an emailed statement, she stated that Hertz placed an order for 100,000 Tesla electric vehicles last week and would invest in new EV charging infrastructure in all of its global operations. Deliveries of Teslas have already started. Our rental fleet is seeing strong demand early for Teslas, which is indicative of market demand.

Tesla did not immediately respond for comment.

Automakers who sell large numbers of vehicles daily to rental companies have been frowned upon by investors. Because cars and trucks are often sold to rental fleets at a significant discount, such deals reduce inventories and allow for increased vehicle delivery. 

After Hertz declared that it will increase its battery-electric vehicle fleet with “an initial order for 100,000 Teslas” by 2022, Tesla reached a market capitalization of $1 trillion.

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 said it was a “great friendship” as part of Hertz’s efforts to manage large fleets of electric vehicles.

An announcement video was supported by an advertisement featuring Tom Brady, seven-time Super Bowl Champion, and two parked Tesla Model 3 electric cars in Hertz’s garage.

Hertz stated that the order would account for half of all the available cars two days after it was announced. Uber drivers to rent by 2023This is. It was stated that the company could increase the number of vehicles by 150,000 if the program is successful over the next 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.