Tesla market cap passes $1 trillion within 18 years

Tesla joins elite club as its market cap passes $1 trillion within 18 years

Tesla hit market valuations and then crossed the 1 trillion mark on Monday, reaching a milestone by the company 11 years after it became a publicly-traded company. This puts Tesla among selected companies, along with Apple, Amazon, Facebook, and Google, all of which have market caps of over $ 1 trillion. Tesla hit the 1 trillion market cap mark around noon on Monday when the stock hit 998.22. The share price went just below $ 1,000 and then suddenly surpassed it - another first for Tesla. The stock rose 12.66% to close at $ 1,024.86. This is the first time the company’s share price has reached $ 1,000 a share.

TESLA JOINS ELITE CLUB AS ITS MARKET CAP PASSES $1 TRILLION WITHIN 18 YEARS
TESLA JOINS ELITE CLUB AS ITS MARKET CAP PASSES $1 TRILLION WITHIN 18 YEARS


The stock price rose on Monday on several news items related to Tesla, including that rental giant Hertz, which recently emerged from bankruptcy, agreed to buy 100,000 EVs from the automaker. 

The deal, which will push car rental giant EV offers to 20% of its global fleet, is reportedly worth 4.2 billion. According to the rental company, the Tesla Model 3 cars will appear on the Hertz rental list in major U.S. markets and selected cities in Europe early next month.

Other news that provided a bullish update on Tesla also helped boost share prices, including a research note by Morgan Stanley analyst Adam Jonas that the firm has raised its price target to $ 1,200 (previously from $ 900) and is repeating its overweight rating.

Separately, a report from JATO Dynamics also determined that the Tesla Model 3 was the best-selling car in Europe last month, the first time a full-electric car has surpassed combustion engine models, Reuters reported.

Popping share prices picked up speed on Monday from last week when Tesla reported third-quarter net income of $ 1.62 billion, nearly five times the 331 million it earned in the same period last year. 

Record-setting profits have come thanks to record sales and global chip shortages and supply chain constraints that have affected the industry.


Significantly, Tesla was able to earn that record net income (on a GAAP basis) although most of its sales came from its cheaper Model Y and Model 3 electric vehicles. The company also generated 13.76 billion in revenue in the third quarter, up 56% from $ 8.77 billion reported in the same period last year. Revenue also rose 15% to 11.96 billion in the second quarter of 2021.

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