Tesla is on track to lose $42 billion in market value after company stock fell as much as 4%.
This comes after shares of Tesla have risen nearly 33% since rental car company Hertz announced an order of 100,000 Tesla vehicles by the end of 2022. The rise also boosted Musk’s net worth by $85 billion, making him the richest person in history. Before stock dropped on Tuesday, Musk addressed the rise in stock amid news of the Hertz deal, and he revealed via Twitter that he’d “like to emphasize that no contract has been signed yet.” Following the announcement, shares in the company dropped, with many linking the change to Musk’s tweet. Despite Musk saying that no contract has been signed, Hertz stated the delivery process for their initial order of 100,000 Teslas has already started. Lauren Luster, director of communications, addressed the situation via email to CNBC.
“As we announced last week, Hertz has made an initial order of 100,000 Tesla electric vehicles and is investing in new EV charging infrastructure across the company’s global operations. Deliveries of the Teslas already have started. We are seeing very strong early demand for Teslas in our rental fleet, which reflects market demand for Tesla vehicles.”
Despite the dip in shares, Tesla is still up about 60% this year.