Tesla became the first publicly traded US automaker to reach a US$1 trillion market capitalization in October 2021.
Tesla crossed the milestone after its share price rose sharply in response to expanding electric-vehicle deliveries and a large vehicle order from Hertz. The company’s valuation reflected expectations about future growth in electric cars, batteries, charging, and software as well as its existing vehicle sales.
Tesla was founded in 2003 and delivered its first production car, the Roadster, in 2008. Its Model 3 and Model Y helped move the company from a niche electric-car maker toward mass-market production. The company’s market value often became a central measure of investor confidence in the transition away from combustion engines.
The milestone does not mean Tesla was the largest automaker by annual vehicle production. Market capitalization measures investors’ valuation of a company, while production rankings measure physical output.