Tesla was the first electric-vehicle maker to reach a $1 trillion market capitalization, crossing the threshold in October 2021.
Tesla’s valuation surged after the rental-car company Hertz announced an order for 100,000 vehicles. The company’s shares then rose enough to push its market capitalization above $1 trillion during trading on October 25, 2021.
Tesla was founded in 2003 and initially focused on producing electric cars with long driving ranges and high performance. Its Model 3 and Model Y helped move the company toward higher-volume production, while its battery and energy-storage businesses broadened its ambitions.
Tesla’s market value has often reflected expectations about future vehicle production, autonomous driving, and energy technology. Market capitalization is not the same as the number of vehicles a company sells.