No fleet discount, Hertz pays full price for 100,000 Tesla Model 3 order

hertz model 3
Image via Hertz

The confirmation came straight from the top. Tesla CEO Elon Musk said last night that Hertz paid full price on its massive Model 3 order.

Yesterday Hertz announced the order for 100,000 of the electric sedans just four months after exiting bankruptcy protection. The rental car company didn’t confirm how much they spent on the deal, but it was speculated that they paid near full price, or about $4.2 billion.

Despite some thinking they would receive a fleet discount for such a massive order, Musk confirmed they paid the same price as a regular consumer.

Given that the deal was signed before last week’s price increase, that means they paid $41,990 for each car.

The announcement led to a huge rally for Tesla (TSLA) shares, increasing by 12.66% during trading to close at a new all-time high of $1,045.02.

That rise was perplexing to Musk, who rightly pointed out that the automaker has no trouble selling cars, but is instead production constrained.

 

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Founder and Editor-in-chief of Drive Tesla Canada | Darryn@DriveTeslaCanada.ca Have a Tesla tip? Email tips@driveteslacanada.ca, or DM us on Twitter @DriveTeslaca