Tesla became the first automaker to reach a $1 trillion market valuation in October 2021.
Tesla crossed the milestone after its share price surged in October 2021, helped by a major vehicle-order agreement involving Hertz. The valuation reflected investors’ expectations for future electric-vehicle production, software, batteries, and energy businesses rather than only the company’s current vehicle sales.
Tesla was founded in 2003 by Martin Eberhard and Marc Tarpenning. Elon Musk joined soon afterward as a major investor and became chairman; he later became chief executive. The company’s first production car, the Roadster, was introduced in 2008, followed by the Model S, Model X, Model 3, and Model Y.
Tesla’s milestone concerns market capitalization, not the number of cars produced or sold. It also did not mean Tesla was the largest automaker by revenue or global unit sales. Market value can place a strong premium on expected growth and technological leadership.