Tesla becomes the first automaker worth $1 trillion

On 25 October 2021, Tesla’s stock surged after Hertz announced an order for 100,000 vehicles, pushing the company’s market capitalisation above $1 trillion for the first time. It was the first automaker in history to reach that valuation, and only the sixth US company ever to join the trillion-dollar club, alongside the likes of Apple, Microsoft and Amazon.

At that valuation Tesla was worth more than roughly the next dozen largest automakers combined — an extraordinary verdict for a company that had been near bankruptcy in 2008 and that legacy rivals and short-sellers had spent a decade predicting would fail. Markets are volatile and a valuation is not a measure of cars built, but crossing $1 trillion was a milestone no carmaker had ever achieved.