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



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 | 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
Iqtidar has been writing about Tesla, Elon Musk, and EVs for more than 3 years on XAutoWorld.com, many of his articles have been republished on CleanTechnica and InsideEVs, maintains a healthy relationship with the Tesla community across the Social Media sphere. You can reach him on Twitter @IqtidarAlii

Latest News

Tesla releases Cybertruck Delivery Event details, entry will require QR code scanning, TSLA stock price surges, more

Tesla (TSLA) released details of the Cybertruck Delivery Event today. The event is scheduled to take place at the...

Watch the Tesla Cybertruck drive through the salty sea water like a boss

Tesla Cybertruck is currently the most anticipated vehicle of the entire automotive industry globally. Tesla showrooms are getting rushed...

Canada’s lone Cybertruck attracts massive crowds waiting in line to get a first look, more Tesla showrooms get it in the US

On the day of Black Friday and the following weekend, a massive number of Canadians chose to see the...

Elon Musk’s iPhone wallpaper of Starship’s 2nd launch tells us a bit about his phone preferences

CEO of Tesla and SpaceX Elon Musk shared his personal phone's wallpaper on X (Twitter) a couple of days...
- Advertisement -

Elon Musk’s iPhone wallpaper of Starship’s 2nd launch tells us a bit about his phone preferences

CEO of Tesla and SpaceX Elon Musk shared his personal phone's wallpaper on X (Twitter) a couple of days...

2nd Starship launch was a success, it went way beyond stage separation and then missing in space

After 7 months of excitement, hurdles, and wait, SpaceX finally launched Starship for the 2nd time. Although both Super...

SpaceX delays Starship launch to Saturday 18th Nov to fix a grid fin on the Super Heavy rocket, says Elon Musk

SpaceX CEO Elon Musk has announced on his social media platform X that the 2nd Starship launch which was...

Tesla Tips & Tricks

Tesla Quarterly Reports & Eearnings

- Advertisement -

You might also likeRELATED
Recommended for You