Tesla surpasses $1 trillion market value

Tesla’s market valuation hit and then surpassed the $1 trillion mark Monday, a milestone reached by the company 11 years after it became a publicly traded company. It also puts Tesla in select company with Apple, Amazon, Facebook and Google, all of which have market caps above $1 trillion.

Tesla met the $1 trillion market cap mark around midday Monday when shares hit $998.22. Share prices hovered just below $1,000 and then suddenly shot past it — another first for Tesla. Shares closed up 12.66%, at $1,024.86. This is the first time the company’s share price reached $1,000 a share.

Shares pushed higher Monday on several news stories related to Tesla, including that rental giant Hertz, which recently emerged from bankruptcy, had agreed to buy 100,000 EVs from the automaker. The deal, which will push the car rental giant’s EV offerings to 20% of its global fleet, is reportedly worth $4.2 billion. Tesla Model 3 vehicles will show up in the Hertz rental inventory as early as next month in major U.S. markets and select cities in Europe, according to the rental company.

Separately, a report from JATO Dynamics also determined that the Tesla Model 3 was the top-selling vehicle in Europe last month, making it the first time a full-electric car has outsold combustion engine models, Reuters reported.

The popping share price Monday builds off momentum from last week when Tesla reported net income of $1.62 billion in the third quarter, a nearly fivefold increase from the $331 million it earned in the same period last year. The record-setting profit came thanks to record sales and despite a global chip shortage and supply chain constraints that have affected the industry.

Notably, Tesla was able to earn that record net income (on a GAAP basis) even as the vast majority of its sales came from its cheaper Model Y and Model 3 electric vehicles. The company also generated $13.76 billion in revenue in the third quarter, a 56% increase from the $8.77 billion it reported the same period last year. Revenue was also 15% higher than $11.96 billion reported in the second quarter of 2021.

Tesla stock has had a history of volatility, sometimes enflamed by CEO Elon Musk and his tweets. However, the stock has been steadily rising — with a few notable dives — for the past year. A year ago, Tesla shares were a bit over $420 a share.