Tesla crossed a $1 trillion market capitalization for the first time on October 25, 2021.
Tesla's shares surged after the car-rental company Hertz announced an order for 100,000 electric vehicles. The rally pushed Tesla's market value above the trillion-dollar threshold during trading.
The milestone made Tesla one of the few companies ever to reach that valuation. It also reflected expectations about future electric-vehicle sales, battery technology, software, and energy products, not just the company's current vehicle deliveries.
Tesla was founded in 2003 and became associated with Elon Musk, who joined its board soon afterward and became chief executive in 2008. A trillion-dollar market cap does not mean Tesla had that amount of cash available.