On Monday, Tesla (NASDAQ:TSLA) joined the club of a selected few companies that have traded with a market capitalization of $1 trillion. This astonishing performance took the company just over 11 years since its public listing to cross this landmark.
Tesla freshly landed its most extensive electric car order of 100,000 thanks to Hertz, the car rental company that went bankrupt at one point. Hertz anticipates the electric vehicles to be delivered by the end of next year.
Following the reports, shares jumped to close 12.66% higher at $1,024.86 a share on Monday. According to the Bloomberg Billionaire Index, the personal wealth of Tesla’s Chief Executive Officer went up by $36.2 billion.
Although Musk described it as “strange” on a recent Twitter feed, the stock now joins the ranks of rival tech companies including, Apple (AAPL), Alphabet Inc. (GOOGL), Amazon (AMZN), and Facebook Inc. (FB).
When looking at returns, Tesla shares gained more than 2,175% in the last five years and saw its revenue grow by 33% per year. These figures visibly demonstrate the value investors place on innovation and technology.
Moreover, electric vehicles going mainstream is probably encouraging news ahead of the COP26 environment summit.
Musk on Hertz's order, says: "Strange that moved Valuation, As Tesla is very much a production ramp problem, not a demand problem."
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