Tesla became the first automaker to exceed a $1 trillion market capitalization in 2021.
Tesla passed the $1 trillion valuation on October 25, 2021, after its share price surged following news that Hertz had ordered 100,000 electric vehicles. The milestone made Tesla the first car manufacturer to be valued above $1 trillion in public markets.
Tesla was founded in 2003 by Martin Eberhard and Marc Tarpenning, with Elon Musk joining soon afterward as a major investor and chairman. The company helped accelerate interest in battery-electric vehicles through models including the Roadster, Model S, Model 3, Model X, and Model Y.
Market capitalization does not measure the number of cars a company sells or the value of its factories. Tesla's valuation reflected investor expectations about future vehicle sales, batteries, software, charging, and energy products, which can produce very different rankings from those based on current production.