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Tesla is evaluating a deal to supply 100,000 electric vehicles to Hertz. Analysts within Tesla have estimated a positive NPV for the deal, and their

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Tesla is evaluating a deal to supply 100,000 electric vehicles to Hertz. Analysts within Tesla have estimated a positive NPV for the deal, and their analysis has been highly confidential. Today, the deal will be announced to the public. If stock markets are efficient, what do you expect to happen as a result of the announcement? The price of Tesla shares will rise gradually before the announcement; after that, there will be no further price adjustment related to the announcement. The price of Tesla shares will not change. The price of Tesla shares will rise within the few hours after the announcement, and will continue to rise over the following days. The price of Tesla shares will rise immediately upon the announcement and there will be no further price adjustment related to the announcement. The price of Tesla shares will rise upon the announcement, and then gradually fall back to their original value

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