Tesla Becomes Latest Member of Trillion Dollar Club
PALO ALTO (CBSLA) - Tesla, Inc. became the latest American business to join the Trillion Dollar Club on Monday, after a series of moves that pushed the company's worth above a $1 trillion.
The jump in valuation comes after Hertz, the well-known car rental company, purchased 100,000 vehicles from Tesla to be delivered to their various locations around the United States and Europe. This move will make 20% of the Hertz fleet electric powered cars, giving renters more options.
This move prompted investors in the company to push Tesla's market value to 1.03 trillion. In response, shares in the company also jumped to over $1,000 each ($1,024.86)- finishing the day up 12%.
Estimations of the move by Bloomberg value the deal at approximately $4.2 billion for Tesla, in what is reported to be the single largest deal in the history of electrical vehicles.
According to The Wall Street Journal and Dow Jones Market Data, it took less than two years for Tesla's market value to grow from $100 billion to $1 trillion, something that took Amazon eight years to accomplish. The company value is now greater than that of the next nine auto makers combined.
Last week, Tesla posted its third-consecutive quarter of turning a record profit, another factor in the company's continued growth.
Elon Musk, CEO of Tesla and the richest person in the world, has also seen his own net work skyrocket, with his own holdings in the company worth around $297 billion. Musk's net worth now sits at $255.2 billion.
With the announcement of the move, Hertz also saw stock grow by 10.04%, bringing shares to a worth of $27.17 at the end of the day. Not bad for a company that had announced bankruptcy as recently as December 31, 2020. In July of 2021, they announced that they were no longer in Chapter 11 bankruptcy.
Tesla is now part of a prolific club that only five other American business have joined, The Trillion Dollar Club. The other five businesses are household names and powerhouses in their respective businesses - Amazon, Google, Facebook, Apple and Microsoft. In recent months, Facebook's valuation has dipped a bit, falling below the trillion dollar threshold.
