Tesla reached a $1 trillion market capitalization after Hertz announced an order for 100,000 vehicles in October 2021.
Tesla's shares surged on October 25, 2021, after the rental-car company announced the major order. The rally briefly pushed Tesla's market value above $1 trillion, making it one of the few companies ever to reach that level.
The event highlighted how strongly investors valued Tesla's expected growth in electric vehicles, even though the company was much smaller by revenue than several established automakers. Tesla's valuation was driven largely by expectations about future production, software and energy businesses.
Hertz later said its initial order involved Model 3 cars. Tesla's milestone should not be confused with being the first automaker to reach $1 trillion, because other companies had already crossed that valuation.