Tesla (NASDAQ:TSLA) has reached a $1-trillion-U.S. market capitalization after news that car rental company Hertz is ordering 100,000 electric vehicles sent Tesla stock to a new all-time high.
Electric car manufacturer Tesla joins companies such as Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT) in the $1-trillion-U.S. market cap club.
News of the Hertz order sent Tesla’s stock to more than $1,045 a share midday, a new record. The stock closed on Monday (October 25) up 12.66% at $1,024 per share.
Strong European sales and bullish analyst calls further boosted Tesla’s stock price. Morgan Stanley (NYSE:MS) raised its price target on Tesla stock to $1,200 a share from $900 previously.
Jato Dynamics said that Tesla’s Model 3 electric sedan became the first fully electric vehicle to top new car sales overall in Europe in September.
The deal with Hertz, which will bring in a reported $4.2 billion U.S. for Tesla, is the largest ever purchase of electric vehicles. The cars are slated for delivery within the next 14 months, and some will be available to customers in the U.S. and parts of Europe as early as November.
The deal comes more than a year after Hertz filed for bankruptcy protection during the height of the pandemic, as demand for travel and rental vehicles waned. Investors from Knighthead Capital Management and Certares Management have since taken over Hertz and the company is emerging from bankruptcy.