Tesla Stock up Nearly 11% After Hertz Order of 100,000 Cars
Tesla and Hertz Talking Points:
- TSLA at $972.37 after Hertz deal and Q3 results
- HTZZ at $26.40 a year after bankruptcy
Tesla and Hertz Corporation announced a ground breaking deal Monday, pushing the EV market into the previously untapped rental space. In response to the corporate announcement, Tesla shares have gapped 4.5 percent higher on the week’s open.
Chart of Tesla with 50-Day Moving Average, Volume and Daily Gaps (Daily)
Chart Created by John Kicklighter on TradingView
Hertz Orders 100,000 Teslas
After a tumultuous year, Hertz is looking towards the future. The car rental firm placed an order of 100,000 Teslas as the first step in their goal to have an all electric fleet by 2022.
The $4.2 billion dollar deal includes 100,000 Tesla Model 3s as well as custom software made to improve the usability experience for first-time Tesla users.
The deal also included a commitment from Hertz to begin developing thousands of their own Tesla supercharger stations.
Tesla Sees Growth after Q3 Earnings
Tesla saw a 1.5% drop after hours on Wednesday, October 20th, after the car manufacturer announced improved earnings per share at 144.7% Year Over Year and a rise in revenue to 56.8%; missing analyst forecasts.
TSLA continues to charge to fresh all-time highs in the wake of the combined earnings and Hertz deal news.
Hertz and Travel Industry See Increased Confidence
Hertz’s growth to a $12.5 billion market cap is a remarkable about face from their May 2020 bankruptcy. The rental agency has in one fell swoop become the largest source of electric vehicle rentals in the United States.
While the Delta variant derailed much of the travel industry’s anticipated summer 2021 rebound, Hertz is a travel industry and sharing economy firm seeing growth through Q4 2021.
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