10-26-2021, 11:53 AM
Tesla hits $1 trillion market cap for the first time after Hertz says it will buy 100,000 electric vehicles
- Tesla hit a $1 trillion market cap for the first time after Hertz said Monday it would buy 100,000 electric vehicles.
- News of the deal brought Tesla’s stock to a new record high just one trading day after the shares topped $900.
- The deal comes more than a year after Hertz filed for bankruptcy protection during the height of the coronavirus pandemic, as demand for travel and rental vehicles dropped.
![[Image: https%3A%2F%2Fd1e00ek4ebabms.cloudfront....&width=700]](https://www.ft.com/__origami/service/image/v2/images/raw/https%3A%2F%2Fd1e00ek4ebabms.cloudfront.net%2Fproduction%2F8e7aef61-03ce-4a94-b217-b1ebfdf8d94c.jpg?fit=scale-down&source=next&width=700)
Tesla hit a $1 trillion market cap on Monday following news that Hertz is ordering 100,000 vehicles to build out its electric vehicle rental fleet by the end of 2022.
The company joins trillion-dollar market cap companies like Apple, Amazon and Microsoft.
News of the deal brought Tesla’s stock to more than $1,045 a share midday, a new record high one trading day after the shares broke $900. The stock closed up 12.66% at about $1,024 a share.
Strong EU sales and bullish analyst calls further boosted Tesla’s stock price. Morgan Stanley’s Adam Jonas raised his price target on Tesla to $1,200 a share from $900 on Sunday.
Jato Dynamics said Monday that Tesla’s Model 3 electric sedan became the first fully electric vehicle to top new car sales overall in Europe in September.
Tesla CEO Elon Musk celebrated the milestone on Twitter a minute before market close.
- More -