Tesla has no demand problem, says Musk in light of the 100k Model 3 order by Hertz, TSLA becomes a $1 trillion company

-

-Advertisement-

Tesla CEO Elon Musk said that his electric car company has “no demand problem” — he was responding to a tweet by investor Ross Gerber who is the CEO of the investment firm Gerber Kawasaki. Ross congratulated Tesla and Elon Musk on getting a huge order of 100,000 Tesla Model 3 cars by car rental giant Hertz.

The TSLA stock price has been constantly rallying since the news of this massive order broke on Wednesday. Upon crossing $1,000 per share, Tesla gained a market valuation of $1 trillion — a landmark achievement by an 18-year-old automotive company.

However, Musk was surprised that this order ended up moving the valuation of the company, “Strange that moved valuation, as Tesla is very much a production ramp problem, not a demand problem,” he said.

Tesla Model Y Accessories by EVANNEX (Sponsored Banner).
– Sponsored –

What Musk is trying to imply here is that even if Tesla did not have the Hertz 100k Model 3 order at hand, the automaker still had to make cars at full capacity throughout 2022.

The scale at which Tesla demand has grown through the previous financial quarters, the existing manufacturing plants of the automaker are not able to fulfill the global demand of Tesla EVs.

During the Q3 2021 Earnings Call, Tesla CFO Zachary Kirkhorn revealed that Gigafactory Shanghai combined with the Fremont car factory have reached an annual production rate of 1 million cars.

Production is expected to start at Gigafactory Texas and Giga Berlin in the coming weeks and months which will further add to Tesla’s capacity.

– Advertisement –

Elon Musk revealed an interesting fact about the Hertz order, “To be clear, cars sold to Hertz have no discount. Same price as to consumers,” he clarified. At $43,990 apiece multiplied to 100k Model 3 cars, this makes it a $4.2 billion dollar deal. And according to Hertz, it’s just an “initial order“, there’s more to come in the future.

The Tesla stock price is till surging today, as of this writing one TSLA share is trading at ~$1050 at NASDAQ. This has pumped the market valuation of Tesla to $1.04T.

October 25, 2021, was the biggest day in Tesla history since its IPO, the share price increased a staggering $115 per share, the biggest ever for TSLA in a single day. Rob Maurer from Tesla Daily podcast explains it better with his expertise with Wall Street (video below).

TSLA share price as of 27 Oct, 2021 at 12:02 PM GMT -4.
TSLA share price as of 27th Oct 2021 at 12:02 PM GMT -4. Credits: Google / NASDAQ.

Stay tuned for constant Tesla updates, follow us on: 
Google News | Flipboard | X (Twitter) | WhatsApp Channel | RSS (Feedly).

The biggest day ever in TSLA history. Tesla stock price analysis by Rob Maurer / Tesla Daily.
Iqtidar Ali
Iqtidar Alihttp://www.teslaoracle.com
Author of more than 1500 articles on Tesla, SpaceX, and EVs. His work has been liked and tweeted by Elon Musk and other prominent influencers. You can reach him on Twitter @IqtidarAlii

Latest News

Grok is coming to Tesla vehicles next week at the latest, Elon Musk

Tesla owners and enthusiast community was expecting Elon Musk to announce the coming of Grok AI chatbot to their...

Tesla Plaid vs Lamborghini Revuelto — results of a 1,000 hp drag racing battle are interesting (video)

Revuelto is Lamborghini's latest supercar with a price tag of above $600K. This genuine piece of car design and...

Tesla is mapping Austin, Texas for Robotaxi service and Cybertruck FSD

In the last few days, Austin, Texas has been swarmed by Tesla Robotaxi Model Ys and company-owned Cybertrucks. However,...

Tesla update 2025.20.6 goes wide release (issues, bugs, release notes)

Tesla's over-the-air (OTA) update 2025.20.3 has become the most widely rolled-out version as of the first week of July....
- Advertisement -

Stay tuned with the updates in your Inbox

Get the latest Tesla FSD, Software Updates, Starship News in Your inbox.

By hitting the Subscribe button you agree to receiving email communications from TeslaOracle.com.
We don't email everyday. Frequency will be weekly at max.

Flight 10 Starship explodes during testing at Starbase, Texas, resulting in a launch delay (video)

Starbase, Texas — last night (18th June, around 11:00 PM CT), Flight 10 Starship upper stage aka Ship 36...

SpaceX prepares for Starship’s 10th flight, conducts a static fire test on Booster 16, Starbase updates

After the unfortunate events of Starship's 9th launch and landing test, SpaceX is gearing up for its next flight...

Trump to cancel SpaceX contracts, Musk retracts from decommissioning the Dragon spacecraft program

Tesla & SpaceX CEO Elon Musk and US President Donald Trump's romance has taken a historic and unanticipated turn....

Tesla Tips & Tricks

Tesla phone app lets owners remotely melt snow off their cars (video)

Tesla cars have some super-nice climate features that other...

Cybertruck rust or just dust — and how to fix the issue

It has been almost 3 months since Tesla started...

Here’s how the Tesla mobile app V4.0 is different than the old version

Tesla released the newer version 4.0 of its mobile...

Tesla Quarterly Reports & Eearnings

Tesla (TSLA) announces date and time of the Q2 2025 Earnings Call

Elon Musk’s electric vehicle and energy storage company Tesla...

Tesla (TSLA) delivers 47,441 more cars in Q2 compared to Q1 2025 but sales drop ~15% YoY

Elon Musk's electric vehicle manufacturing company, Tesla (TSLA), revealed...

Tesla (TSLA) surges after Q1 2025 Earnings Call, Musk’s time at DOGE to drop significantly soon

Surprisingly, after reporting negative Q1 2025 automotive and overall...

Stay tuned with the updates in your Inbox

Get the latest Tesla FSD, Software Updates, Starship News in Your inbox.

By hitting the Subscribe button you agree to receiving email communications from TeslaOracle.com.
We don't email everyday. Frequency will be weekly at max.
- Advertisement -

You might also likeRELATED
Recommended for You