Home > Auto > News > Tesla market value breaches $1 trillion mark for first time ever. Details here
File photo of Tesla vehicles used for representational purpose. (AFP)
File photo of Tesla vehicles used for representational purpose. (AFP)

Tesla market value breaches $1 trillion mark for first time ever. Details here

  • Tesla has received order for 100,000 EVs from Hertz car rental company, a development that saw wealth of Tesla CEO Elon Musk grow by 11.4% to $255.8 billion.

Tesla may still only be present in a handful of countries across the world but the EV giant has further consolidated its dominance and lead in the world of electric mobility with its market value recent crossing the $1 trillion mark for the first time ever. The market value of Tesla surpasses this significant milestone after the US company confirmed Hertz will buy 100,000 electric vehicles from it.

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(Also read: Tesla sells 10 lakh EVs in three years)

Hertz is one of the biggest car rental companies and the announcement that it would drive in Tesla cars to its fleet has meant the jingle of money sounding louder for the EV maker. It also underlines how electric vehicles are not just gaining acceptance among personal buyers but also fleet operators and car rental companies - a clear signal of battery-powered options going mainstream.

And if Tesla was always posed to take advantage, it is now reaping the benefits.

Reports suggest that the deal between Tesla and Hertz is likely to be worth around $4 billion. This is based on estimates that each Model 3 product costs around $40,000. It also means great news for those who own Tesla stocks as share prices saw a rise by 13% to $1,024.86. Forbes said CEO Elon Musk, the richest person in the world, saw his wealth grow by 11.4% to $255.8 billion.

Riding high: Tesla CEO Elon Musk has seen his wealth grow substantially in recent times.
Riding high: Tesla CEO Elon Musk has seen his wealth grow substantially in recent times. (REUTERS)

But there's much to gain for Hertz as well, a company that had found going tough in the initial months of the global pandemic. The demand for electric vehicles on rent in the US has been steadily growing and offering Tesla Model 3 vehicles could be a shot in the arm. Additionally, these vehicles would also be able to use Tesla charging infrastructure on chargeable basis which means that the overriding concern about range may be alleviated to some extent.

Experts believe that EVs on rent may help consumers at large experience battery technology without actually investing in a new car in an outright purchase model. But it is not clear yet how Hertz will structure the rent pricing for the Tesla models even if some expect the cost to be higher than what one has to pay for conventional vehicles.

  • First Published Date : 26 Oct 2021, 08:37 AM IST

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