Tesla Hits $1 Trillion Market Value, Boosting Elon Musk’s Wealth By $25 Billion In One Day
Tesla’s market value has hit the $1 trillion mark for the first time ever after rental company Hertz ordered 100,000 of its vehicles.
The rise in Tesla’s share price has further bolstered the fortunes of its founder and chief executive, Elon Musk. According to Forbes, Musk became $25 billion richer following the deal with Hertz, making him wealthier than any billionaire ever. Recently, Morgan Stanley predicted that Musk will become the world’s first trillionaire.
Tesla’s stock market value has soared throughout 2020 and 2021 as investors bet on accelerating sales of EVs in a global push towards increased sustainability amid the climate crisis.
On Monday, Tesla shares rose by as much as 9% to as high as $998 following the deal with Hertz. Although the shares later returned to below this level, it nonetheless marks a significant milestone for the EV maker.
Hertz has said it expected the Tesla vehicles to be delivered by the end of 2022 as part of its plan to build the largest EV rental fleet in the US. The 100,000 vehicle purchase could cost the rental company as much as $4 billion, even with a bulk discount.