The company's market value hit $1 trillion Monday. This milestone was reached 11 years ago, when it became publicly traded. This puts Tesla in select company alongside Apple, Amazon and Facebook, which all have market caps exceeding $1 trillion.
Tesla reached $1 trillion market capital Monday afternoon when shares touched $998.22. Tesla's share prices soared to $1 trillion after hovering just below $1,000. Today's opening saw shares trade above $1,027. This is an increase of about 13%. This is the first time that the share price of the company has reached $1,000 per share.
Stocks rose Monday after a variety of Tesla news stories. Hertz, a rental company that recently emerged from bankruptcy, agreed to purchase 100,000 electric vehicles from Tesla. According to reports, the deal will increase Hertz's EV offering to 20% of its global fleet. It is worth $4.2 billion. According to Hertz, the Tesla Model 3 cars will be available in Hertz's rental inventory in select European cities and in major U.S. markets as soon as next month.
Other news that gave Tesla bullish updates also helped to lift the share price. Morgan Stanley analyst Adam Jonas wrote a research note that stated that Tesla was increasing its price target from $900 to $1,200 and that it is reiterating the overweight rating.
Separately, a report by JATO Dynamics found that the Tesla Model 3 was Europe's top-selling car last month. This is the first time a full electric vehicle has outsold combustion engine cars, Reuters reported.
The momentum built by last week's Tesla third quarter net income of $1.62 Billion, which was nearly five times more than the $331 M it earned last year, is evident in Monday's rising share price. Record sales were the reason for this record-setting profit, despite the global shortage of chips and supply chain constraints that have impacted the industry.
Tesla managed to achieve this record net income on a GAAP basis despite the fact that most of its sales were from the Model Y and Model 3 electric cars. The company reported $13.76 billion revenue for the third quarter. This is 56% more than the $8.77 million it reported last year. The revenue was 15% more than the $11.96 billion it reported for the second quarter in 2021.
Tesla stock has a history that has been volatile, with occasional spikes caused by Elon Musk's tweets. The stock has been rising steadily with some notable drops over the past year. Tesla shares were slightly over $420 per share a year ago.