Tesla became the first electric-vehicle company to reach a $1 trillion market capitalization in October 2021.
Tesla’s valuation crossed the threshold after its share price surged in October 2021, following news that Hertz had ordered 100,000 electric cars. The company was already the best-known pure-play electric-vehicle manufacturer in public markets, and investors were also pricing expectations for future production and software revenue.
Tesla was founded in 2003 by Martin Eberhard and Marc Tarpenning, with Elon Musk joining soon afterward as a major early investor and chairman. Its Model S, Model 3, Model X, and Model Y helped expand electric vehicles into broader consumer markets.
The milestone describes Tesla’s equity value, not the value of every electric vehicle maker combined. It also does not establish that Tesla produced more vehicles than all rivals; market capitalization reflects investor expectations as well as current business results.