Tesla reached a $1 trillion market capitalization in October 2021 after a major rise in its share price.
Tesla passed the milestone on October 25, 2021, after a large order from Hertz for electric vehicles helped drive investor enthusiasm. The valuation made Tesla one of the world’s most valuable automakers, despite producing far fewer vehicles than established manufacturers at that time.
Founded in 2003, Tesla focuses on electric vehicles, batteries, charging infrastructure, and related energy products. Elon Musk joined the company as an early major investor and became its chief executive in 2008.
Market capitalization measures the value of Tesla’s publicly traded shares, not the number of cars it had sold or its total physical assets. The share price later moved substantially, illustrating that market-cap rankings can change quickly.