Market Capitalization of Tesla Crosses $1 Trillion. Know how?

After receiving the biggest order, Elon Musk’s Tesla has finally surpassed the market capitalization of Tesla by $1 trillion. With that, Tesla has finally joined the elite group of companies, including Facebook, Google parent Alphabet, and Amazon.

On Oct 25, 2021, the first time, the company's shares rose to $1,036.63 before it settled at $1,025 at the market close value of $ 1 trillion. In turn, a year ago, Tesla's shares values were a bit over $420 each share. Facebook, one of the most well-known social media companies, first hit $1 trillion in June 2021 but later sunk to $927 billion.

How Did It Happen?

All thanks to a rental car company called Hertz, who rose from its bankruptcy, bought several billion dollars worth of Tesla cars, and pushed Tesla to a $1,000 share price for the first time in over a decade. Tesla passed its milestone, as the genius electric car maker Elon Musk delivered more than 240,000 vehicles in the third quarter of 2021, roughly 70% more than the previous year.

The biggest order from the rental car company has made the shares and market capitalization of tesla rise up by 45% in 2021 or nearly $300 in value since January 2021 despite turmoil at the beginning of the year

Sometimes tweets by CEO Elon Musk Tesla electric cars had made the company go volatile. However, the company's stocks have been steadily rising — with the help of a few notable dives — since 2020.

Sales that Led to Increased Market Capitalization

Reports from JATO Dynamics also showed that the Tesla Model 3 was one of the top-selling vehicles in Europe last month, making Tesla, for the first time, a fully electric car having outsold its combustion engine models.

Tesla was also reported to have net income with a market capitalization of Teslab of $1.62 billion in the third quarter of 2021, which is nearly a fivefold increase of $331 million compared to 2020, increasing the market capitalization of Tesla.

The company's achievement came thanks to record sales despite the global chip shortage and supply chain constraints which greatly affected the industry.

Moreover, Tesla was able to earn that record net income (on a GAAP basis) due to the vast majority of the electric car sales, which includes its cheaper Model Y and Model 3 electric vehicles. This was mostly possible due to having stocked up with Model Y production in its Shanghai factory, which has become its main export facility.

The rental giant Hertz had agreed to buy 100,000 EVs from the Tesla Company. The giant's car rental EV offers 20% of its global fleet, which is reportedly worth $4.2 billion for the company.

The Future for Tesla

Revenue and the market capitalization of Teslawere also reported to have increased from $11.96 billion by 15%, as reported in the second quarter of the year 2021.

The real question lies in whether Tesla can maintain its $1 trillion market capitalization. There are always increasing tensions between Elon Musk's company and the National Highway Traffic Safety Administration, which are reported to have risen lately. Even after facing so many challenges, Tesla's founder Elon Musk has kept his cool. With assistant robots working for the genius, a neural link of technology, and SpaceX's plans, there's no stopping Elon Musk's fantastic spree of breaking records!

Tesla is now merely updating its autopilot software. Tesla's autopilot mode is now under strict scrutiny since a dozen of its cars are reported to have collided with parked emergency vehicles.

However, it must be noted that Elon Musk had started by investing in a very small company that is today known as Tesla. It is an inspiration to all those entrepreneurs who dream big and their aspirations can now be attested by the incredible journey of Elon Musk.

We have to sit tight and watch the genius's plans ahead in the future; for now, let's watch Tesla enjoy its limelight after the huge achievement.

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