Tesla became the first automaker to exceed a US$1 trillion market capitalization.
Tesla passed the threshold in October 2021 after a major rise in its share price. Investors were responding to strong vehicle deliveries, expanding production, and expectations that electric vehicles would take a larger share of the global car market.
Tesla’s valuation was notable because it exceeded the market values of much older automakers despite producing fewer vehicles at the time. Investors often value companies according to expected future growth, not only present production or profit. That helps explain why market-cap rankings can differ sharply from rankings by vehicle volume.
Tesla was founded in 2003 and its best-known early model, the Roadster, entered production in 2008. The company later built large factories in the United States, China, Germany, and Mexico-related production networks. Its energy-storage business is separate from, but connected to, its electric-vehicle strategy.