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Share to FacebookShare to TwitterShare to LinkedinTopline Shares of Tesla started reversing a recent rally Tuesday morning after Chief Executive Elon Musk suggested that a massive deal with bankrupt car-rental company Hertz, which helped push Tesla into a rarefied group of firms worth more than $1 trillion, has yet to be finalized—seemingly contradicting an announcement last week that helped the company add more than $300 billion in market value. 

Despite the Tuesday morning plunge, shares of Tesla are still up 60% since Hertz’s $4 billion order … [+] was announced.

AFP via Getty Images Key Facts Tesla stock fell as much as 4% Tuesday morning after closing at a record high $1,208 on Monday, putting the company on track to lose $42 billion in market value and ending a week of straight gains.

The dip started after Musk, 50, tweeted overnight that he’d “like to emphasize . . . no contract has been signed” with Hertz yet, responding to a user touting—and praising Musk for—Tesla’s recent stock gains.

“Hertz deal has zero effect on our economics,” Musk added, without mentioning shares of Tesla have skyrocketed nearly 33% since Hertz announced an order of 100,000 vehicles by the end of 2022 as part of a bid to electrify its fleet of rental cars, representing the carmaker’s largest order ever, according to Wedbush analyst Dan Ives.

In a statement, Hertz did not directly respond to Musk’s tweet but reiterated that it’s made an “initial order” of 100,000 Tesla cars and said vehicle deliveries have already started.

Key Background Tesla’s Hertz-fueled surge has helped make it more valuable than social media giant Facebook and even propelled the S&P 500 and Nasdaq, which both count the carmaker among its largest constituents, to new highs over the past week. In the United States, only Apple, Microsoft, Amazon and Google parent Alphabet are worth more than Tesla, which still commands nearly $1.2 trillion in market value. Hertz’s order would represent about 20% of the nearly 500,000 vehicles Tesla sold last year. 

Surprising Fact Despite falling Tuesday, Tesla shares are still up about 60% this year, compared to 25% for the S&P. 

Big Number $315 billion. That’s how much Musk was worth after Tesla’s record high on Monday, making him not only the richest person in the world—but also the richest person Forbes has ever tracked. Before Tuesday, Musk’s fortune had grown by about $85 billion since the Hertz deal was announced. 

Further Reading Elon Musk, Nearing $300 Billion Fortune, Is The Richest Person In History (Forbes)

Dow And S&P Hit New Record Highs As Tesla Adds To Its Massive Rally (Forbes)

Tesla Eclipses $1 Trillion In Market Value After Hertz Places Biggest Electric Vehicle Order Ever (Forbes)

Here’s Why Ferrari—Not Tesla—Is Morgan Stanley’s Favorite Electric Vehicle Stock (Forbes)

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