Tesla became the first automaker to reach a $1 trillion market capitalization.
Tesla crossed the $1 trillion threshold in October 2021 after its share price surged following a large vehicle order from Hertz. The company’s valuation reflected expectations about electric-vehicle growth, battery technology, software, charging infrastructure, and future production, rather than only its current vehicle sales.
Tesla was founded in 2003 and is associated with Elon Musk, who joined the company’s board in 2004 and became its chief executive in 2008. The Model 3 and Model Y helped Tesla move from a niche electric-car maker toward mass-market production.
Tesla’s market-cap record is often mixed up with traditional automakers’ rankings by annual production. Toyota, Volkswagen, and other manufacturers have generally produced more vehicles, but market capitalization measures investors’ valuation of equity. Tesla later fell below and moved above the threshold as its share price changed.