Tesla’s capitalization surpassed the $ 1,000 billion mark after the news of selling 100,000 cars, Elon Musk just flipped the contract saying ‘not yet signed a contract’

Tesla shares fell after billionaire Elon Musk said he doubts Hertz Global’s plan to buy 100,000 Tesla electric cars.

Accordingly, Elon Musk revealed on Twitter that Tesla has not yet signed a contract with Hertz. Musk also said that because Tesla has more demand for cars than it can produce, a deal with Hertz if it doesn’t happen will “have absolutely no impact on the company.”

Immediately, Tesla shares fell 3% in Tuesday trading. However, despite this drop, the electric car maker still saw its share price rise 29%, reaching a value of 1. $.18 trillion after Hertz announced the EV initiative.

Last week, Hertz Global Holdings, a car rental company, said it had ordered 100,000 Tesla vehicles to electrify its fleet.

Meanwhile, Hertz said on Tuesday that it is ready to take delivery of Tesla vehicles under a $4.2 billion plan to add to its electric vehicle fleet through 2022. The order equates to about a tenth of the order. how many cars Tesla can produce each year.

“As we announced last week, Hertz has fulfilled an initial order of 100,000 Tesla vehicles and is investing in electric vehicle charging infrastructure across the company’s global operations. Initial Tesla deliveries. The first is about to begin. We’re seeing increased demand for our Tesla rental fleet – mirroring the market’s demand for Tesla vehicles.”

“Initial gains exceeded our expectations,” CEO Hertz said last week.

Monday’s tweet was the first time Musk was questioned about his response to Hertz’s “huge” order. He wrote on October 25 that Tesla’s change in market value was “very strange” because he said the company was facing more of a production problem, not a demand one.

Tesla shares fell after Musk said he had not signed a contract with Hertz.

Earlier on October 26, the news of the largest order in the auto industry of up to 100,000 Tesla cars from Hertz sent Tesla shares soaring, bringing Tesla officially past the $1 trillion mark.

Tesla is worth three times more than Toyota, the second most valuable automaker, with a market capitalization of about $280 billion. However, Toyota boasts higher sales and profits than Tesla.

Last year, Tesla sold just 500,000 cars worldwide – which means its current market value equates to about $2 million per car sold.

Year-to-date, the company has sold 627,000 cars and is targeting nearly one million sales for the full year. That still equates to a valuation of more than $1 million per car. But clearly investors are still betting Tesla will hit its target of 50% or more annual sales growth for years to come.