Monday, October 25, 2021

Recently bankrupt car rental company Hertz buys 100,000 Tesla cars

This news caused a buzz today and pushed the Tesla stock price over $1000! However, there is possibly an irony in this latest business deal! Given the fact that in recent months, the competition of Tesla is catching up how overvalued is Tesla, the now $1 trillion valued company?

Will this deal create more charging stations soon? At what discount were these 100,000 cars sold?

"... Those of you with long memories might recall that Hertz actually filed for Chapter 11 bankruptcy last year after the pandemic initial crushed demand for rental cars. As part of its bankruptcy plan, the company sold off a big part of its fleet at a discount. So now the company actually has a shortage of cars to rent as demand has expanded while new cars are scarce and used cars expensive.

So there's a kind of weird poetry to the fact that a purchase order from a recently bankrupt company could push Tesla above a $1 trillion market cap. ..."
 
Breitbart Business Digest

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