• Tesla shares fell as much as 5% Tuesday premarket after Elon Musk said the Hertz contract hasn’t been signed yet.
• News of the order for 100,000 vehicles sent Tesla’s stock soaring last week, lifting it to a $1 trillion valuation.
• A Hertz spokesperson didn’t deny what Musk said, but told Insider that deliveries of the Teslas have already started.

Tesla shares fell as much as 5% in Tuesday’s premarket session, after its CEO Elon Musk said the electric-vehicle maker has not yet signed a contract with Hertz for its mega-order.

The car rental company said last week it had placed an order for 100,000 Tesla vehicles by the end of 2022, seen as the biggest-ever electric-vehicle purchase.

News of the $4.2 billion deal sent Tesla shares soaring, and the company hit a $1 trillion valuation for the first time.

Musk cautioned about the deal in a reply to a Twitter user who thanked him for Tesla’s bull run.

“If any of this is based on Hertz, I’d like to emphasize that no contract has been signed yet,” Musk said in a tweet on Tuesday.

“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’s stock has risen nearly 30% since the news of the Hertz order last Monday, and is up 71% so far this year. But it was trading about 4% lower at $1,161.25 per share as of 7:30 a.m. ET.

A Hertz spokesperson told Insider that deliveries of the Teslas have already started. “We are seeing very strong early demand for Teslas in our rental fleet, which reflects market demand for Tesla vehicles,” they added, without denying what Musk said about the contract.

The Hertz deal would mark a tipping point for the EV industry, with analysts saying it speaks to more mainstream adoption for electric cars.

“Tesla getting an order of this magnitude highlights the broader EV adoption underway in our opinion as part of this oncoming green tidal wave now hitting the US,” Wedbush analyst Dan Ives said in a note. He called the Hertz order a “major feather in the cap” for the EV-maker.

Musk hit a new milestone himself on Tesla’s soaring stock, with his net worth hitting $335 billion. He is now worth three times as much as investing legend Warren Buffett and his fortune is higher than the gross domestic product of his home country, South Africa.

Tesla and Hertz had not responded to a request for comment at the time of writing.

(This story has been updated to add a comment from Hertz.)

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