Tesla hits $1 trillion on Hertz deal
For the first time, Tesla hit the $1 trillion record mark as its market cap. Thanks to an increasing share price after Monday news, Hertz would buy several billion dollars worth of Tesla cars.
Tesla’s market worth stepped up drastically due to Hertz’s bulk orders. At the same time, they were boosting the Australian and Wall Street markets higher. While Nasdaq, including Tesla’s stock, ended 0.9% higher, the other ones closed higher too.
In addition, this breakthrough is a huge achievement for Tesla, and it places the automaker in the elite group of companies that also includes Facebook, Amazon, and Google parent Alphabet. However, Tesla is still behind Microsoft and Apple’s more than $2 trillion worth of market caps.
On Monday, Tesla’s share prices soared to $1,036.63 before ending in a $1,025 market close for a value of $1.01 trillion.
Magic https://t.co/KWCpGPZuss pic.twitter.com/CMeHk60kMB
— Sven Henrich (@NorthmanTrader) October 26, 2021
As Tesla’s biggest order ever for its electric vehicles, the rental car company Herts will buy 100,000 Tesla units, and that will make Tesla cars 20% of the Hertz line.
Hertz interim chief executive Mark Fields said, “Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest.”
Although Hertz never disclosed how much their Tesla orders are, they usually buy the type of Tesla car worth $44,000. So it’s safe to say the order could be worth more than $4 billion.
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While Hertz is upgrading to install electric car chargers, their Tesla cars are for release by the end of 2022. Customers who rent Tesla Model 3 will soon have access to 3,000 Tesla charging stations in the United States and Europe.
Moreover, it’s still a question if Tesla can maintain their $1 trillion market cap. Tesla is looking at increased competition in the market of electric vehicles. That being said, electric car maker, Lucid Motors just released a model that surpasses Tesla’s ability. Their new model is at a 100-mile range farther which makes it more attractive for car enthusiasts.
