Rift Between Tesla And Hertz Forms Over Delayed Delivery Times

Tesla and Hertz are having a dispute regarding how long it will take Tesla to deliver the 100,000 electric vehicles that the rental firm requested.

Last week, Hertz revealed that it had placed a contract for 100,000 Tesla vehicles and subsequently joined forces with Uber to give 50,000 of them to its drivers.

The news caused Tesla’s stock to skyrocket until CEO Elon Musk calmed the market by stating they hadn’t “signed” a deal with Hertz which has brought confusion since the initial announcement from Hertz made it clear that the order had been placed.

According to a new report from the Wall Street Journal, the tiff between Hertz and Tesla over delivery times is still ongoing.

“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.”

Tesla has already begun sending Model 3 cars to Hertz, as we previously reported, but in the initial announcement, the rental company predicted that all 100,000 vehicles would be delivered by the end of next year.

Some Tesla employees were not pleased with the statement, according to a source.

Following Musk’s assertion, Hertz said in a statement to the Wall Street Journal:

“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.”

Elon Musk has stated that Tesla does not intend to provide Hertz special treatment. Tesla will charge the same price as typical customers, but it also intends to keep deliveries on schedule.

Tesla has lengthened the time it will take to deliver new orders of Model 3 Rear-Wheel Drive, the model that Hertz has ordered, to late 2022.