Tesla became the first automaker valued above $1 trillion on the stock market.
Tesla crossed the $1 trillion market-capitalization level in October 2021 after its shares surged following news that Hertz had ordered 100,000 electric vehicles. The valuation reflected investor expectations about future electric-vehicle production, battery technology, software, and energy products rather than the company’s sales alone.
Tesla was founded in 2003 by engineers Martin Eberhard and Marc Tarpenning; Elon Musk joined soon afterward as a major early investor and became chairman. The Roadster introduced the brand, while the Model S, Model 3, Model X, and Model Y expanded its lineup.
Tesla’s market value has often been much higher than that of older automakers even when those rivals produced more vehicles. That comparison illustrates how market capitalization reflects expected future earnings and growth, not simply current production volume.