Tesla was the first automaker to be valued above US$1 trillion in market capitalization.
Tesla crossed the US$1 trillion valuation during trading on October 25, 2021. The rise followed strong investor enthusiasm for electric vehicles, Tesla’s delivery growth, and a large order from Hertz for rental cars. The company’s share price and market value remained subject to substantial volatility after the milestone.
Tesla was founded in 2003 by Martin Eberhard and Marc Tarpenning. Elon Musk joined as an early investor and became chairman, later serving as chief executive. Tesla’s Model S, Model 3, Model X, and Model Y helped establish battery-electric vehicles as a major part of the global car market.
The record describes equity valuation rather than production volume. Traditional automakers such as Toyota and Volkswagen have generally produced far more vehicles, while Tesla’s market capitalization reflected investor expectations about future electric-vehicle sales, batteries, software, and energy products.