Tesla was the first electric-vehicle maker to surpass a US$1 trillion market capitalization.
Tesla crossed the US$1 trillion valuation during trading on October 25, 2021. Its share price surged after Hertz announced an order for 100,000 Tesla vehicles, although the company’s valuation also reflected broader expectations about electric-vehicle growth and Tesla’s future businesses.
Founded in 2003, Tesla began production with the limited-volume Roadster before expanding through the Model S, Model X, Model 3, and Model Y. The Model 3 and Model Y helped move the company toward higher-volume sales.
Tesla’s market value has often been much larger than that of traditional automakers, even when its vehicle production was lower. Market capitalization measures investor expectations as well as current operations, so it should not be confused with annual car sales, revenue, or physical manufacturing capacity.