Tesla’s market capitalization exceeded $1 trillion in October 2021 after Hertz announced a large order of Tesla vehicles.
On October 25, 2021, Hertz announced an agreement to order 100,000 Tesla vehicles for its rental fleet. Tesla shares rose sharply, and the company’s market capitalization moved above $1 trillion during trading. The order was widely viewed as a sign that electric vehicles were becoming more accepted by major fleet operators.
Tesla was founded in 2003 and became one of the most valuable automakers despite producing far fewer vehicles than the largest traditional car manufacturers at that time. Investors placed a high value on its electric-vehicle technology, battery systems, software, and potential future growth.
Market capitalization measures what investors value a company’s equity at; it does not directly measure vehicle production or sales volume. Tesla’s stock value has remained notably volatile, so its position among the world’s richest companies can change substantially over time.