Tesla became the first publicly traded automaker valued above $1 trillion in October 2021.
Tesla’s market capitalization passed the milestone after its share price rose sharply following news that Hertz had ordered 100,000 electric vehicles. Market capitalization is calculated by multiplying a company’s share price by its shares outstanding, so it can change daily without the company selling new products or earning a new annual profit.
Tesla was founded in 2003 by Martin Eberhard and Marc Tarpenning. Elon Musk joined as an early investor and became chairman before later serving as chief executive. The company’s Roadster, Model S, Model 3, Model X, and Model Y helped popularize battery-electric vehicles across different market segments.
Tesla is often confused with the world’s largest automaker by unit sales, a ranking that can vary by year and measurement. The $1 trillion milestone specifically describes stock-market value, not vehicle production or revenue.