Tesla and Hertz reportedly have a disagreement over how fast Tesla can deliver 100,000 electric cars

Tesla and Hertz are reportedly in the middle of a disagreement over how fast the former can deliver the 100,000 electric cars that the rental company ordered.

Last week, Hertz announced that they ordered 100,000 Tesla vehicles, then partnered with Uber to provide 50,000 of them to their drivers with an option for 100,000 more.

It sent Tesla’s stock surging significantly until CEO Elon Musk put on the brakes by commenting that they haven’t “signed” a contract with Hertz.

The comment brought confusion since the original announcement from Hertz clearly stated that the order has been placed.

According to a new report from the Wall Street Journal, the ongoing disagreement between Hertz and Tesla is regarding the delivery timeline.

“The two companies are hammering out details of a deal that would specify the timing of deliveries, the people said. Tesla is still expected to supply the 100,000 vehicles at the list price to Hertz, with timing of the deliveries being the key issue, the people said.”

As we previously reported, Tesla has already started deliveries of Model 3 vehicles to Hertz, but in the original announcement, the rental company said that it expected all 100,000 vehicles to be delivered by the end of next year.

Read more: Hertz orders 100,000 Teslas, the single-largest EV purchase ever, with Tom Brady campaign

That comment reportedly didn’t sit right with some people at Tesla.

In a statement to WSJ and following Musk’s comment, Hertz added:

“As we announced last week, Hertz has made an initial order of 100,000 Tesla electric vehicles and is investing in new EV charging infrastructure across the company’s global operations. Deliveries of the Teslas already have started.”

Tesla apparently doesn’t plan to give Hertz any special treatment, They are not only going to pay the same price as regular customers, but Tesla also plans to make the deliveries within its regular time schedule.

Lately, Tesla has pushed its delivery timeline for new orders of Model 3 Rear-Wheel Drive, the version that Hertz has ordered, to late 2022.

Electrek’s Take

Sounds like both sides might be right here.

Hertz likely placed an order for 100,000 Tesla Model 3 vehicles and then claimed deliveries by the end of next year because that’s what Tesla is quoting right now.

Then on Tesla’s side, Musk probably made the comment because they don’t actually have a contract to deliver those vehicles on that timeline. It’s just like a regular customer order.

I would expect updated delivery timelines for Model 3 vehicles in the US toward the end of 2022.

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