Tesla (TSLA) - Get Tesla Inc Report shares extended gains Wednesday after riding-hailing group Uber Technologies (UBER) - Get Uber Technologies, Inc. Report said it would partner with Hertz Global (HTZZ) - Get HERTZ GLOBAL HOLDINGS INC Report to offer 50,000 clean-energy cars to its drivers.
Uber said it would allow drivers to rent a Model 3 from Hertz -- which placed a $4.4 billion order with Tesla for 100,000 vehicles earlier this week -- for around $334 a week. The program will start in Los Angeles, San Francisco and San Diego and Washington, D.C., next month, before expanding nationwide in 2022.
Tesla shares were also given a boost by a price target increase from Goldman Sachs, where analyst Mark Delaney pegged Tesla at $1,125 per share citing the growth and margin benefit from the group's Hertz order.
Tesla shares were marked 4.65% higher in early trading Wednesday to change hands at $1,065.31 each. Uber shares fell 1.9% to $45.22 each.
Earlier this week, Tesla joined an elite list of only five other American companies that have passed the $1 trillion market cap threshold after its stock raced past $1,000 a share following the 100,000 Hertz order, an upgrade from Morgan Stanley and record third quarter earnings.
Tesla posted net income of just over $2 billion for the three months ending in September, alongside the strongest profit margins in the group's history -- 30.5% -- and record sales of $13.7 billion. The blowout figures followed another all-time high in third quarter deliveries, which rose 73.2% from last year to 241,300 units.
Non-GAAP earnings were pegged at $1.86 per share, up 135% from the same period last year and well ahead of the Street consensus forecast of $1.59 per share.