TSLA Tesla Inc

By Michael Dabaie

Hertz Global Holdings Inc. shares were up 6.4% to $36.33 in recent trading, and earlier in the session touched a 52-week high of $46.00.

Late Monday, in response to a tweet on Tesla's stock performance, the Twitter account of Tesla Chief Executive Elon Musk said: "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."

Tesla shares fell 3% to $1,170.74 in late-morning trading.

"As we announced last week, Hertz has made an initial order of 100,000 Tesla electric vehicles and is investing in new EV charging infrastructure across the company's global operations. Deliveries of the Teslas already have started. We are seeing very strong early demand for Teslas in our rental fleet, which reflects market demand for Tesla vehicles," Hertz said in a statement.

Shares of both Tesla and Hertz, which currently trades over-the-counter, rallied after Hertz said in late October that is in making a significant investment in its EV rental fleet, including an initial order of 100,000 Teslas by the end of 2022 and new EV charging infrastructure across the company's global operations.

Shares of another car rental company, Avis Budget Group Inc., more than doubled, up 116% to $371.05 in late-morning trading, and topped $530 earlier in the session.

Avis after the bell Monday reported third-quarter revenue of $3 billion, beating FactSet consensus of $2.7 billion and adjusted EPS of $10.74, beating FactSet consensus for $6.87.

Hertz in October said it filed with the U.S. Securities and Exchange Commission for a proposed public offering of its common stock. The shares of common stock to be sold in the offering are anticipated to be offered by some of the company's stockholders.

Hertz said it plans to apply to list its common stock on the Nasdaq Global Select Market under the symbol HTZ in connection with the offering.

Write to Michael Dabaie at michael.dabaie@wsj.com

(END) Dow Jones Newswires

November 02, 2021 12:06 ET (16:06 GMT)

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