Tesla became the first automaker valued above $1 trillion.
Tesla’s market capitalization passed $1 trillion in October 2021 after its share price rose sharply following news of a large vehicle order from Hertz. The company had already changed expectations for electric vehicles by combining battery-powered cars with software updates, charging infrastructure, and a direct-sales model in many markets.
Tesla was founded in 2003 by Martin Eberhard and Marc Tarpenning. Elon Musk joined as an early major investor and became chairman, later serving as chief executive. The Roadster, Model S, Model X, Model 3, and Model Y helped Tesla move from a niche sports-car maker toward mass-market production.
A trillion-dollar valuation is a stock-market measurement, not a statement that Tesla had earned or held that amount in cash. Tesla’s valuation has been especially sensitive to vehicle deliveries, production capacity, margins, competition, interest rates, and investor expectations about autonomous driving.