A series of messages and counter-messages between the car rental giant Hertz, And the CEO Tesla, Alon Musk, raised an incomprehensible embarrassment in the American car market. Hertz, which recently recovered from bankruptcy, announced last weekend a huge deal with Tesla to buy 100,000 electric cars, which it will add to its fleet by the end of 2022. Hertz even recruited Tom Brady, an American football legend, for a massive campaign , Which will market the new green line it has taken. In the advertisement, Hertz promises that if the conditions allow it, it will make another 150,000 such cars available to its customers, in the next three years.
But with Hertz’s celebrations, came the embarrassment. On Monday this week, Musk tweeted that there is still no signed deal between the two giants. Hertz declined to comment on this contradiction, but in another statement, a company spokeswoman stressed that Hertz is fully committed to its commitment from last week – to add Tesla electric vehicles to its fleet by the end of 2022. Hertz even announced that the first Tesla vehicles have been shipped to it, Of their customers to electric cars.
Tesla feared that the deal would send a message that it was giving Hertz priority in supply, at the expense of its regular customers. This is one of the traditional claims in the American car market, against huge deals between car manufacturers and rental companies, which are signed at discounted wholesale prices and dilute the car inventory at the manufacturer – which reduces the supply in the market, and inevitably affects consumer prices.
Therefore, Musk emphatically announced that the deal – which was not signed, he claimed – between Tesla and Hertz, would have no effect on Tesla’s economic policy, and Hertz would accept the same terms of purchase that private customers receive. And despite the embarrassment and disagreements – the share value of the two companies soared following Hertz’s announcement of the deal.