Hertz Global Holdings (NASDAQ:HTZ) told Benzinga on Tuesday that it is actively receiving deliveries for Tesla Inc (NASDAQ:TSLA) electric vehicles across the country but does not yet have availability at LaGuardia.
What Happened: The car rental company said it continues to receive the vehicles for both its retail and Uber Technologies Inc (NYSE:UBER) rental fleets and has availability in several markets.
Hertz has been adding Tesla's most-affordable vehicle, the mid-size electric sedan Model 3, for rent on its booking platform as part of a national rollout.
The car rental company had to explain the “unavailability” on Tuesday after longtime Tesla bear Gordon Johnson tweeted to say that Model 3 electric sedans are sold out at the LaGuardia airport.
Sounds good. This is helpful. I was told by the dedicated @Hertz TSLA rental attendant today that there's not yet cars in the system in CA, OH, TX, nor NY. I was told there are a "few" in FL. Can you confirm?
— Gordon Johnson (@GordonJohnson19) January 25, 2022
The analyst attached “sold out” screenshots and later referred to his conversation with the Hertz rental attendant that there are no cars in the system in California, Ohio, Texas and New York and only a few in Florida.
Hertz in October announced it would be buying 100,000 Teslas by the end of 2022. The company tapped Tampa Bay Buccaneers star Tom Brady to promote the deal.
The car rental company later responded to Johnson saying it continues to receive and add Tesla vehicles in phases as per its national rollout plan and that there is no availability at LaGuardia.
Johnson’s tweets drew comments from Tesla critics and fans. Investment advisor Ross Gerber took a shot at the analyst.
Fun watching you make a fool of yourself Gordon.
— Ross Gerber (@GerberKawasaki) January 25, 2022
Why It Matters: Hertz’s announcement in October was seen as a bold move from a company that had only months ago emerged out of bankruptcy. The deal announcement sent shares of both companies higher, leading to Tesla stock joining the $1 trillion market capitalization club for the first time.
See Also: This Metric Will Be The Street's Focus With Tesla For 2022: Wedbush
Hertz further announced a partnership with ride-sharing company Uber to rent out 50,000 Teslas exclusively to drivers by 2023.
Tesla CEO Elon Musk later tweeted to say that Tesla had not yet signed a contract with Hertz, adding that the EV maker would sell the electric cars at list price to the car rental company.
Uber said later in a blog post that Model 3 units would be available for booking in Los Angeles, San Francisco, San Diego and Washington, DC, from Nov. 1 onwards, with plans for a nationwide expansion in the following weeks.
Tesla shares have been under pressure lately and retreated below the $1 trillion valuation.
Price Action: Hertz shares closed 1.4% lower at $18.25 a share. The stock is down 26% year-to-date.
