Tesla became the first automaker to reach a $1 trillion market capitalization.
Tesla passed the $1 trillion mark in October 2021 after its share price rose sharply following news of a major vehicle order from Hertz. The milestone made Tesla the first car manufacturer to join the trillion-dollar group of publicly traded companies.
Investors valued Tesla not only as a conventional automaker but also as a fast-growing electric-vehicle, battery, software, and energy company. Its valuation was much larger than that of traditional automakers at the time, despite Tesla producing fewer vehicles than the world’s largest manufacturers.
Market capitalization measures the total market value of Tesla’s outstanding shares. It can change quickly because it depends on the stock price. Tesla was founded in 2003 and became associated with Elon Musk, who joined as an early investor and became chief executive in 2008.