Tesla crossed a $1 trillion market capitalization for the first time in October 2021.
Tesla passed the threshold on October 25, 2021, after its shares rose sharply following news that Hertz had ordered 100,000 electric vehicles. The milestone made Tesla the first automaker to achieve a $1 trillion market value, although its share price later moved below that level.
Tesla was founded in 2003 by Martin Eberhard and Marc Tarpenning, and Elon Musk joined the company soon afterward as a major investor and chairman. The company’s best-known products include the Model S, Model 3, Model X, and Model Y, as well as energy-storage products and solar technology.
Market capitalization measures equity value rather than the number of vehicles produced. Traditional automakers have generally produced more vehicles, but Tesla received a much higher valuation per vehicle because investors expected strong future growth in electric cars and related technologies.