Tesla's market capitalization reached and then surpassed $1 trillion on Monday, marking the company's 11th year as a publicly traded company. It also places Tesla alongside Apple, Amazon, Facebook, and Google, all of which have market capitalizations exceeding $1 trillion.
When Tesla's stock hit $998.22 around midday Monday, the company's market capitalization surpassed $1 trillion. Tesla's stock price hovered just below $1,000 before soaring past it — a first for the company. At $1,024.86 per share, shares were up 12.66 percent. The company's stock price has now surpassed $1,000 per share for the first time.
Several news stories about Tesla pushed the stock higher on Monday, including the announcement that rental giant Hertz, which recently emerged from bankruptcy, had agreed to buy 100,000 electric vehicles from the automaker. The $4.2 billion deal 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. markets and select European cities.
Other optimistic updates on Tesla included Morgan Stanley analyst Adam Jonas' research note, which stated that the firm was raising its price target to $1,200 (from $900 previously) and reiterating its overweight rating on the stock.
Separately, according to Reuters, a report from JATO Dynamics found that the Tesla Model 3 was the best-selling vehicle in Europe last month, marking the first time a fully electric vehicle has outsold a gasoline-powered vehicle.
The soaring stock price Last week, Tesla reported a net income of $1.62 billion for the third quarter, nearly five times higher than the $331 million it earned in the same period the previous year. Despite a global chip shortage and supply chain constraints that have hampered the industry, the record profit was achieved thanks to record sales.
Tesla was able to achieve that record net income (on a GAAP basis) despite the fact that its cheaper Model Y and Model 3 electric vehicles accounted for the vast majority of its sales. In the third quarter, the company generated $13.76 billion in revenue, up 56 percent from the $8.77 billion it reported in the same period last year.
In addition, revenue was 15% higher than the $11.96 billion reported in the second quarter of 2021.
Tesla stock has a history of high fluctuation, which has been partly caused by CEO Elon Musk's tweets. For the past year, however, the stock has been steadily rising, with a few notable dips. Tesla stock was a little over $420 a share a year ago.
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