Tesla became the first automaker to exceed a $1 trillion market capitalization in 2021.
Tesla briefly passed the $1 trillion mark on October 25, 2021, after its shares surged following a major vehicle-order announcement. The milestone made it the first car manufacturer to receive a public-market valuation above that level.
Founded in 2003, Tesla helped make battery-electric vehicles a mass-market focus. Its business also includes energy-storage products, charging infrastructure, software features, and solar-energy offerings. Elon Musk joined the company early and became its most prominent executive and public representative.
Tesla’s market value was much larger than the revenue or profits of traditional automakers at the time, which led to debate about growth expectations and valuation. A company’s market capitalization measures investor expectations as well as current financial performance, so it can differ dramatically from rankings based on vehicle production.