After the seven-step poem in Chinese aroused many discussions, including the technology circle, the game circle, and the currency circle, Tesla CEO Elon Musk continued to throw a “blockbuster” on social media. He said that Tesla There has not been any contract signed with Hertz. At present, Tesla’s demand is far greater than production. Even if it cooperates with Hertz, Tesla will only sell cars at the same profit margin as ordinary consumers.
Musk added that the deal with Hertz would have zero economic impact on Tesla.
According to foreign media reports, on October 25, the veteran American car rental giant Hertz will order 100,000 Tesla Model 3s at a price of 4.2 billion US dollars. If the transaction is successful, this order will become the largest electric vehicle order in history. At the close of the day, Tesla’s stock price rose 12.66% to close at $1024.86 per share, and its market value exceeded $1 trillion for the first time, reaching $10267 billion. As of the close of November 1, Tesla’s stock price closed at US$1208.59, an increase of 8.49%, and the company’s market value reached a record high of US$1.21 trillion.
On the same day, Hertz also released a promotional video of Tesla Model 3 and American NFL (Professional Football League) superstar Tom Brandi on its social media, with the text “Introducing our new EV fleet.” On October 27, Hertz further stated that by 2023, the company will provide 50,000 electric vehicles to the travel giant Uber. Users may encounter Tesla’s electric vehicles under Hertz when booking Uber. Earlier, Uber announced that it will be fully electrified in the United States by 2030. At present, when drivers driving electric vehicles use Uber to carry passengers, the company will give drivers an additional $1 to encourage them to switch to electric vehicles. Uber’s rival Lyft has also promised to be fully electric by 2030.
Hertz has experienced a year of ups and downs. On May 22, 2020, Hertz filed for bankruptcy. Hertz said in the announcement that the impact of the new crown epidemic on travel demand was sudden, causing the company’s revenue and future bookings to drop suddenly. Although the company took immediate action to deal with the crisis, there is still uncertainty when revenue will recover and when the used car market will fully resume sales. Hertz intends to continue operating while restructuring debt, and financially emerge a healthier company.
Before filing for bankruptcy, Hertz owns 750,000 vehicles and has businesses in more than 150 countries and regions around the world. It owns three brands Hertz, Dollar and Thrifty. It is not only the second largest car rental company in the United States, but also the world’s top five used car dealers. .
In June 2021, after more than a year of reorganization, Hertz announced that it was out of bankruptcy protection. According to foreign media reports, Hertz has provided more than $5.9 billion in new equity through a new investment consortium, which reduced the company’s debt by nearly 80% and “significantly enhanced liquidity to provide funding for operations and future growth.” In addition, Hertz also stated that the company received US$2.8 billion in exit credit and US$7 billion in asset-backed instrument financing, and said the terms of these financing were “extremely favorable.”
In October, Hertz also submitted a prospectus to the US SEC, preparing to be listed on the US Nasdaq under the stock code: “HTZ”. According to the prospectus, Hertz’s revenue in the first half of 2021 was US$3.161 billion, and its revenue in the same period last year was US$2.755 billion; its net profit was US$19 million, and its net loss in the same period last year was US$1.2 billion. As of June 30, 2021, Hertz’s total assets were US$19 billion and total debt was US$8.549 billion.