Tesla became the first automaker to exceed a $1 trillion market capitalization.
Tesla crossed the milestone in October 2021 after its share price surged following news of a major vehicle order from Hertz. The valuation reflected investor expectations about electric vehicles, battery technology, software, and Tesla's future growth, not just the number of cars it had already sold.
Tesla's market value was far above that of traditional automakers at the time, even though established manufacturers generally produced many more vehicles. Investors were valuing Tesla partly as a technology and energy company as well as a carmaker.
The milestone does not mean Tesla was the world's largest automaker by production. Market capitalization measures the stock market's valuation of a company, while production rankings count vehicles manufactured.