Tesla’s market capitalization reached and then surpassed $1 trillion on Monday, October 25, marking the company’s 11th year as a publicly traded corporation.
When Tesla’s stock touched $998.22 around lunchtime Monday, the company’s market capitalization surpassed $1 trillion. Tesla’s stock price lingered just below $1,000 before soaring over it – a first for the company. The stock ended the day at $1,024.86, up 12.66%. The company’s stock price has now surpassed $1,000 per share for the first time.
Several news reports about Tesla pushed the stock higher on Monday, including the announcement that rental giant Hertz, which just emerged from bankruptcy, had agreed to buy 100,000 electric vehicles from the automaker. The $4.2 billion agreement will increase the car rental giant’s electric vehicle offerings to 20% of its global fleet. According to Hertz, Tesla Model 3 vehicles will begin to appear in the rental fleet as early as next month in major U.S. regions and selected European locations.
Last week, Tesla announced a net income of $1.62 billion for the third quarter, about five times higher than the $331 million it earned in the same period the previous year. Despite a global chip scarcity and supply chain bottlenecks that have hampered the sector, the record profit was achieved mainly to record sales.
Tesla was able to achieve that record net profitability even though its cheaper Model Y and Model 3 electric vehicles accounted for the great bulk of its sales. In the third quarter, the corporation brought in $13.76 billion in revenue, up 56% over the $8.77 billion it brought in the year before. In addition, revenue was 15% more than the $11.96 billion reported in the second quarter of 2021.
Tesla stock has a history of high volatility, which has been exacerbated by CEO Elon Musk’s comments. For the past year, though, the stock has been slowly climbing, with a few noticeable dips.
This mark places Tesla with Apple, Amazon, Facebook, and Google, all of which have market capitalizations over $1 trillion.