The company hit the $1 trillion value mark sometime during the mid-day on Monday. It is the first time that Tesla has surpassed the said market value after becoming a publicly-traded company almost 11 years ago. The share prices for Tesla also reached an all-time high of $1,024 a share after it surpassed the $1 trillion mark.
The share prices jumped by 12.6% following the announcement of Tesla’s recent deal with the car rental giant Hertz. As per reports, Hertz, which recently came out of bankruptcy, signed a deal with Tesla to acquire 100,000 electric cars for its operations. The deal aims to push Hertz’s EV offerings up to 20% and the company reportedly paid around $4.2 billion for it.
Tesla is aiming to deliver the order to Hertz by next month and the latter will have 100,000 Tesla Model 3 cars in its inventory by the end of November. Other than this, Tesla’s market value further increased, thanks to the massive sales of the Tesla Model 3 in Europe last month. As per a recent Reuters report, it was the first time in the European market that an electric vehicle outsold gas-powered cars.
Furthermore, Tesla was able to garner a record income of $1.62 billion in the third quarter of 2021, which is a huge increase from its $331 million profit during the same quarter of last year. So, combining this increase in profit and the rising share prices, Tesla was able to reach the $1 trillion market value mark for the first time in its history.
