26 Oct Tesla surpasses $1 trillion valuation after Hertz order
Tesla surpassed a market value of $1 trillion on Monday, making it the fifth such firm to reach the milestone.
Shares in the electric carmaker climbed 12.6% after it struck a deal to sell 100,000 vehicles to the car rental firm Hertz.
Tesla has been the world’s most valuable carmaker for some time, but brands like Ford and GM make more cars.
Previously only Apple, Microsoft, Amazon and Google-owner Alphabet have reached a $1tn valuation.
For years, Tesla struggled to ramp up production of its cars, leading some investors to speculate it would fail.
But last year the company, led by billionaire Elon Musk, upped its game and became profitable for the first time, prompting its shares to take off.
Following the jump in its share price, Mr Musk’s 23% stake in the business is worth around $230bn.
The deal with Hertz is the biggest-ever rental car order for electric vehicles and seen as a further vote of confidence.
Hertz will pay $4.2bn for 100,000 Model 3s over the next 14 months, which amounts to about a fifth of its fleet. The rental firm will also build a network of charging stations.
Teslas have a range of about 200 miles per charge, but there is a dearth of charging infrastructure in the US – something the Biden administration hopes to change.
“Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest,” said Hertz interim boss Mark Fields.