Tesla joins Apple, Amazon, and Microsoft in the trillion-dollar market cap club
News that Hertz ordered 100,000 vehicles to build out its electric vehicle rental fleet by the end of 2022 pushed Tesla to the $1 trillion market cap threshold. According to Bloomberg, the deal is the largest ever purchase of electric vehicles. Reportedly, this will bring Elon Musk’s company $4.2 billion.
“Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest. […] The new Hertz is going to lead the way as a mobility company, starting with the largest EV rental fleet in North America and a commitment to grow our EV fleet and provide the best rental and recharging experience for leisure and business customers around the world,” said Mark Fields, Hertz interim Chief Executive, stated.
Chief Executive Elon Musk tweeted “Wild $T1mes” a minute before the closing bell, with fans cheering the milestone.
Also, rumor has it that the electric cars are scheduled for delivery within the next 14 months. The vehicles will be available to customers in the US and parts of Europe as early as November.
The record-breaking deal comes one year after Hertz filed for bankruptcy protection during the height of the COVID-19 pandemic.
After the news hit the wires, Tesla stock price reached a new record, trading at $1,045 apiece midday. The stock closed 12.66% higher at around $1,024. The record-breaking stock price was also impacted by Morgan Stanley analysts, who revised the volume upwards to 8.1 million vehicles by 2030, pointing to an annual growth rate of 28%.
Since the beginning of the year, Tesla stock price jumped 47.4%, while USA500 added 21%.
Sources: cnbc.com, marketwatch.com