New Delhi: Electric vehicle manufacturing company Tesla crossed the $1 trillion valuation mark on Monday. The surge of 12.06% in the market capitalisation for the company came after a deal was finalised between Tesla and car rental firm, Hertz.
Hertz will be buying around 1 lakh Model 3s vehicles from Tesla for $4.2 billion in the subsequent 14 months.
With this Tesla has become the sixth company in the world to enter the $1 trillion valuation club. The earlier companies that marked their market capitalization over $1 trillion were Apple, Microsoft, Amazon, Google-owned Alphabet, and Saudi Arabia’s Oil company Aramco.
Tesla is the second-fastest company to hit the $1 trillion mark, reaching it just more than 12 years after its 2010 initial public offering. Only Facebook (FB), which needed just over 9 years from its IPO to reach $1 trillion, got there faster, reported Bloomberg
The company had been struggling to make profits in the past years. But since last year, the company’s financial statements had started reflecting profits for the company which also resulted in increased share prices.
As Hertz struck the deal with Tesla for the electric cars, the rental firm will also create infrastructure for charging the electric vehicles.
Tesla was founded by Elon Musk on July 1, 2003, in California, United States. The company marked its place in the market for manufacturing cars with an autopilot feature which makes it a self-driving car.
While Tesla has entered the $1 trillion club, other car manufacturers like Ford and General Motors are still ahead in terms of production volume.
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