October 25, 2021: Tesla’s market values took a huge leap as for the first time it broke through the $1tn mark after the US electric car trailblazer received an order for 100,000 of its vehicles from the rental company Hertz. The automaker’s stock market has shown an upswing throughout 2020 and 2021 as the investors bet on accelerating gross sales of electric automobiles within the run-up to government bans on petrol and diesel automobiles to fulfil local weather targets.
After the announcement of orders made by Hertz on Monday, Tesla shares rose by as much as 9% to as high as $998, taking it past the milestone, though the shares fell back later below that level. Depending on the number of shares disclosed in its latest filing, Tesla shares must trade above $995.75 to stay above the $1tn (£727bn) level.
According to Hertz, the cars would be delivered by the end of 2022 as it plans to build the largest electric vehicle rental fleet in North America. Nonetheless, the company did not give any details about how it would fund the purchase, which could be valued as much as $4bn even with a bulk discount.
The net worth of Tesla CEO, Elon Musk was already over $252bn before Monday’s features - almost $60bn more than Amazon founder, Jeff Bezos, the world’s richest man behind the Tesla Chief. This boost in Tesla’s share price added more fortune to Elon Musk.
Despite the company being forced to withdraw a software update for its autonomous driving capabilities over the weekend, Monday’s valuation came as a major milestone. The company CEO tweeted on Sunday that the firm was rolling to the previous version, but later on Monday, he announced a new update.
According to figures assembled by Jato Dynamics, an automotive data company, Tesla sold 24,600 Model 3 cars in Europe throughout September, taking a 2.6% market share, outperforming the established internal combustion engine models such as Volkswagen’s Golf or Renault’s Clio. The surge in the market share coupled with bulk orders for electric cars has complemented the company's trillion-dollar valuation.