Elon Musk contradicts Hertz on Tesla deal, claims “no contract signed”

Plans to roll out 150,000 electric cars for rental and ride-sharing services in the USA could be under strain, as Tesla and Hertz contradict each other on fundamental details.  

Last week Drive reported Hertz had secured a record-breaking order for 100,000 Model 3 electric sedans, with the cars set to be rolled out for private rental use by 2023.

Hertz subsequently announced it had bought a further 50,000 vehicles from Tesla, as part of an arrangement with ride-sharing firm Uber.

Following the announcements of the fleet deals, Tesla stock jumped approximately 5.0 per cent, pushing market capitalisation beyond $US1 trillion ($AU1.35 trillion) for the first time.

However, in a Tweet overnight, Tesla boss Elon Musk said: “I’d like to emphasise that no contract has been signed yet [with Hertz] … Tesla has far more demand than production, therefore we will only sell cars to Hertz for the same margin (price) as to consumers.”

In an apparent rebuke of this suggestion, a spokesperson for the rental company subsequently told CNBC and other US media outlets: “As we announced last week, Hertz has made an initial order of 100,000 Tesla electric vehicles. Deliveries of the Tesla cars have already started.”

Drive has contacted Hertz and Tesla in Australia. This story will be updated if more information becomes available.