Tesla became the first automaker valued at $1 trillion in October 2021. Its market capitalization passed that threshold after the company’s share price surged following news that Hertz planned to order 100,000 Tesla vehicles.
Tesla’s valuation reflected expectations about future electric-vehicle production, battery technology, software, and autonomous-driving services as well as its existing vehicle sales. At the time, the company’s value exceeded that of several much larger traditional automakers by annual vehicle volume.
A market-cap milestone does not mean Tesla had the highest sales or the most factories. Toyota, Volkswagen, and other established manufacturers produced more vehicles in many years. The distinction concerns the stock-market value of the company’s outstanding shares, which can change substantially even without an immediate change in production.