Image Source: Tesla
By: Michael Argenta
October 31, 2021
$1,030,000,000,000. A number so large, it may take a minute to comprehend. On Monday, Tesla, Inc. (TSLA) reached a stock market capitalization of 1.03 trillion dollars. To put this into perspective, only four other companies are in the trillion club including Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), and Google’s parent company, Alphabet (GOOGL). Needless to say, Tesla is in elite company just three years after Apple became the first trillion-dollar company.
Tesla’s 12.7% price leap on Monday was influenced by an announcement that The Hertz Corporation will purchase 100,000 Model 3s for its rental fleet. The Model 3 sells for just over $40,000 generating a hefty payday for Elon Musk. These cars will be available at rental facilities and airports around the country in hopes of inspiring more people to go electric. With more people having access to test drive Teslas, both companies hope to see positive impacts on the environment and EV market.
While many major car manufacturers have steered clear of massive deals to rental companies because of dumping low selling models on fleets, Tesla does not have this fear. The company believes in being a disrupter and doing unconventional things. After all, Tesla is worth more than the next nine largest automakers combined.
Overall, this is exciting news for the electric vehicle market. With more people having access to Teslas, more may be inclined to purchase one or another electric vehicle. In addition, becoming another trillion dollar company shows the power of newer industries such as EVs. Tesla is definitely a stock to watch, and maybe you’ll be driving one soon on your next trip.
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