This week, a combination of events lead to Elon Musk’s electric vehicle company, Tesla, making it into the trillion-dollar market cap club. This makes it the fifth US company to close on over $1 trillion, following the likes of Apple, Amazon, Microsoft and Google.
The rental car company, Hertz, placed an order for 100,000 Model 3s because it plans to electrify its fleet. Hertz just recently made its way out of bankruptcy, so this is a bold move.
So this latest deal banked the car-maker a whopping $4,2 billion in revenue, pushing up its share price and growing that market cap. “After the purchase was announced, Tesla’s stock price reached as high as $998.74 early in the day, increasing its market cap to over $1 trillion before the price dropped again.”
“However, by the time the market closed for the day, its price had risen again, finishing at $1,024.86 per share for a market cap of $1.01 trillion,” The Verge reports.
The initial sale was reported by Bloomberg, and it details how Hertz will start receiving shipments of its Tesla Model 3s from early November. The company settled on using Tesla for its new green-future strategy because it is “…the only manufacturer that can produce EVs at scale,” according to Mark Fields, interim chief executive officer at Hertz.
Hertz will wait around 14 months for the car-maker to complete the full order of 100,000 vehicles, and not all of ‘em are destined for the US market. The cars will make up part of the rental company’s fleet in certain European regions as well. The company also plans on erecting charging infrastructure in certain areas. But renters will also have access to Tesla’s network of superchargers.