Tesla became the first electric-vehicle maker to reach a $1 trillion market capitalization in October 2021.
Tesla’s valuation surged as investors responded to rapidly growing electric-car demand, improving production, and a major vehicle order from Hertz. The company also benefited from its position as the best-known pure-play electric-vehicle manufacturer in global public markets.
Tesla designs and sells electric vehicles, battery products, and solar-energy systems. Its best-known vehicles include the Model S, Model 3, Model X, and Model Y.
The milestone does not mean Tesla was the world’s largest automaker by vehicle production at that time. Market capitalization reflects share-price expectations and can differ greatly from manufacturing volume, revenue, or current profits.