Tesla dips following delays with Hertz partnership
While experiencing increased valuations from its announced partnership with Hertz rental cars, Tesla begins to slightly drop as the deal has no been finalized yet. Yahoo Finance's Emily McCormick reports.
Video Transcript
- Yeah, speaking of wait and see, Emily, wait and see, apparently-- Tesla and Hertz-- I mean, Hertz on Tesla, that was a good positive news last week. But Elon Musk coming out and saying, hey, well, we haven't signed any contract yet with Hertz.
EMILY MCCORMICK: That's right and this, of course, coming from a Twitter post from Elon Musk. He was mentioning-- he said in a quote, "I'd like to emphasize that no contract has been signed yet." And one of the things that Elon Musk had pointed out during Tesla's rally last week had been the fact that he was a bit surprised at the increase in valuation that Tesla's stock saw on the heels of that Hertz deal announcement.
Because he mentioned that Tesla's issues had really been about supply and not so much about demand. And, of course, that Hertz announcement was much more on the demand side, which he said, has already been strong for Tesla and for their electric vehicles. But again, just a little bit of paring of gains here for Tesla in the pre-market session. That stock had been up for four consecutive sessions and was at a record high as recently as yesterday. So a little bit of a dent here on the heels of that news from Musk. But again, still creating very close to a record high, Brian.
- I come back to this, Emily. Who is going to service 100,000 Hertz Teslas? I don't know and I don't think either one of those company knows, but hopefully they'll figure it out should this deal ultimately move forward.
