Tesla Is The Latest Entrant In Trillion-Dollar Club, Market Cap Exceeds $1 Trillion

Tesla Is The Latest Entrant In Trillion-Dollar Club, Market Cap Exceeds $1 Trillion

Tesla joins the trillion-dollar market cap companies on Monday after Hertz Global Holdings Inc. ordered 100,000 Teslas to build its electric vehicle rental fleet by the end of next year.

As of Monday, Amazon, Apple, Microsoft and Google’s parent company, Alphabet were the only U.S.-based companies with a market cap of at least $1 trillion. Facebook was the last entrant in the Trillion Dollar Club that joined these mega tech companies in late September. 

As per the press releases by Hertz, customers will be able to rent a Tesla Model 3 at Hertz airport and neighbourhood sites in major U.S. markets and certain European cities as early as November. Hertz has planned to deploy thousands of chargers across its network of locations. Renters of a Tesla Model 3 will have access to 3,000 Tesla supercharging stations across the United States and Europe.

For Tesla EVs, Hertz will offer a premium and unique rental experience. “This includes digitized guidance to educate customers about the electric vehicle to get them on their way quickly, and coming soon, an expedited EV rental booking process through the Hertz mobile app.”

“Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest,” said Hertz interim CEO Mark Fields. “The new Hertz is going to lead the way as a mobility company, starting with the largest EV rental fleet in North America and a commitment to grow our EV fleet and provide the best rental and recharging experience for leisure and business customers around the world.”

The Tesla- Hertz deal will bring in $4.2 billion for Tesla and is considered to be the largest ever purchase of electric vehicles, Bloomberg previously reported.

According to a recent report from the research group JATO Dynamics, Tesla’s Model 3 also rocketed to the top, gaining the title of best-selling European car last month and becoming the first electric vehicle to do so on a monthly basis in the region.

Tesla sold 24,591 Model 3 cars in the continent, marking a 58 percent year-on-year increase. However, overall car sales in September 2021 was 964,800 as per Jato’s data, 25 percent lower than the previous year.

Worldwide, Tesla delivered 241,300 vehicles in the July-September quarter, an increase of 73 percent from a year earlier. As per the analysts’ estimates, the electric car maker had to deliver 229,242 vehicles, according to Refinitiv data.

Elon Musk-led Tesla reported sales of its electric vehicles worth $3.11 billion in China in the third quarter, or 48.5% of the $6.41 billion U.S. sales during the said quarter, according to a filing on Monday.  Its sales in China is equivalent to almost half the size of what it sells in the USA

In the third quarter, overall sales of Tesla’s electric cars in China increased to 22.6 percent, up from just under 20 percent a year before.

Before the onset of the pandemic in January 2020, Tesla delivered its first China-made cars to local customers. 

Despite facing flak from state media and social media users, Tesla’s electric cars are a huge hit in China.

Tesla Is The Latest Entrant In Trillion-Dollar Club, Market Cap Exceeds $1 Trillion

A series of positive news helped push the stock to attain a new all-time high. The stock closed its intraday with a single-day gain of 12.7% to reach $1,024.86 per share. The news of the deal took Tesla’s stock to more than $1,045 apiece midday, reaching new heights just after one trading day the stock broke $900. 

On the dashboard of Quantale, the social engagement for the stock amongst the users of Twitter and Reddit surged more than 600% combined with an increase of nearly 170% in the trading volume.  

A total of 62.13 million shares of the stock exchanged hands on Monday, 42.5 million above the average of 19.63M million. Tesla’s Market Cap as of 26 October 2021 stands at $1052.04B.

The stock opened its intraday at $1024.69, up $0.17 from its previous day close of $1024.86.

Strong EU sales and bullish analyst calls gave support to Tesla’s stock price. Morgan Stanley’s Adam Jonas revised his price target on Tesla to $1,200 apiece from $900 on Sunday.