Tesla became the first automaker to reach a $1 trillion market capitalization in 2021.
Tesla crossed the milestone on 25 October 2021 after its share price surged following news that Hertz had ordered 100,000 electric vehicles. The company’s valuation briefly moved above $1 trillion during trading.
The achievement reflected investors’ expectations for rapid electric-vehicle adoption and Tesla’s growth in vehicle production, software, and energy products. It did not mean Tesla had the largest annual vehicle sales; traditional manufacturers still produced far more cars.
Tesla’s market capitalization is calculated by multiplying its share price by its shares outstanding, so the figure changes with the stock market. The $1 trillion threshold was therefore a market-value milestone, not a measure of revenue or profit.