Tesla became the first electric-vehicle maker to reach a $1 trillion market capitalization in October 2021.
Tesla crossed the threshold on October 25, 2021, after its share price jumped following news that Hertz had ordered 100,000 electric vehicles. The company’s valuation reflected expectations for rapid growth in electric-vehicle sales, battery technology, charging infrastructure, and software.
Tesla was founded in 2003 and became closely associated with its Model S, Model 3, Model X, and Model Y vehicles. The Model 3 was particularly important because it targeted a broader market than Tesla’s earlier luxury models.
The milestone describes Tesla’s equity value, not the value of all electric vehicles sold worldwide. It also occurred before several other automakers reached comparable valuations. Tesla’s market capitalization later moved sharply as its stock price changed.