Tesla stock declines reported $ 40 billion in market value following a single tweet from Elon Musk

Tesla stock declines reported $ 40 billion in market value following a single tweet from Elon Musk

Photo by Patrick Pleul / picture alliance via Getty Images

Tesla stock declines reported $ 40 billion in market value following a single tweet from Elon Musk

Elon Musk is one of the most influential people on Twitter for a reason.

So when Musk shared on Monday night that Tesla has currently “no contract” signed with Hertz, Tesla’s share fell as much as 4 percent, setting the company up to lose US $ 42 billion in market value, according to Forbes.

The single tweet – which comes after Tesla shares have blown by 33 percent since Hertz announced it would buy 100,000 of its vehicles by the end of 2022 – puts Tesla’s largest order to date in doubt. Musk also shared that “the Hertz deal has no effect on our economy.”

“If any of this is based on Hertz, I would like to emphasize that no contract has been signed yet,” Musk replied to a Twitter user who showed the Tesla stock growing at an impressive rate. “Tesla has far more demand than production, therefore we will only sell cars to Hertz to the same margin as to consumers,” he added.

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Last week, the alleged Hertz deal came before a reported $ 85 billion fortune increase for Musk himself, which cemented his place as the richest person to ever walk the earth, making his business the sixth ever in the United States worth of USD 1 trillion.

“Electric vehicles are now mainstream, and we are only just beginning to see increasing global demand and interest,” Hertz, interim CEO Mark Fields, said in a Oct. 25 release. “The new Hertz will lead the way as a mobility company, starting with the largest electric car rental fleet in North America and a commitment to expand our electric car fleet and provide the best rental and recharging experience for leisure and business customers around the world.”

Hertz has since reiterated in a statement via CNBC that it made an “initial order” of 100,000 Teslas and that deliveries have begun.

“As we announced last week, Hertz has placed an initial order for 100,000 Tesla electric cars and is investing in new EV charging infrastructure across the company’s global activities,” Lauren Luster, communications director, emailed CNBC. “Deliveries of the Teslas have already begun. We see a very strong early demand for Teslas in our rental fleet, reflecting market demand for Tesla vehicles.”

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