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Elon Musk Says Tesla Has Signed 'No Contract' With Hertz Yet

The rental agency announced last week it would be buying 100,000 new electric vehicles from Tesla in a move to electrify its fleet. 

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Tesla founder and CEO Elon Musk said late Monday that his company had not yet signed a contract with Hertz.

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The rental agency announced last week it would be buying 100,000 new electric vehicles from Tesla in a move to electrify its fleet. 

Related: Tesla Valuation Surges to $1 Trillion

After a Twitter user pointed out that Tesla’s stocks were up, Musk responded, “You’re welcome! If any of this is based on Hertz, I’d like to emphasize that no contract has been signed yet. Tesla has far more demand than production, therefore we will only sell cars to Hertz for the same margin as to consumers. Hertz deal has zero effect on our economics.”

In a press release last week, Hertz said Model 3 cars will be available for rent in major American and European markets beginning in early November and the program will expand through year end. With the order, electric vehicles will make up more than 20% of Hertz’ global fleet. 

The company will also launch electric vehicle charging infrastructure throughout its global operations, said the release, and team up with NFL superstar Tom Brady “to showcase how it is making EV rentals fast, seamless and more accessible, as the company accelerates its commitment to lead the future of mobility and travel.”

The news brought Tesla's valuation to a record-setting $1 trillion, making it one of six companies to ever accomplish such a feat and the fastest one to do so (it hit its new valuation in 12 years after its 2010 IPO.)

Shares surged over 12.6%, according to BBC News, bringint the electric automaker over the $1T mark.