Tesla is now worth more than the 9 long-stranding, largest automakers by market cap combined.
After Hertz purchased order 100,000 Model 3s to rent to customers starting in November, Tesla crossed the threshold of $1 trillion market value. This brings the EV automaker – though the company is now considered a conglomeration of much more – into a select group of prestigious companies worth more than $1 trillion. Apple, Microsoft, Amazon, and Google’s parent company, Alphabet, are the only other U.S. companies to reach this milestone, along with Facebook (now known as Meta), though the latter has had its share price retreat, stripping it from the title. FAANG is outdated and it needs a change.
In Elon fashion, he tweeted a response on Twitter Monday saying, “Wild $T1mes!”
Based on the typical price listings for the models purchased, the cost to Hertz would hit $4 billion, though most auto bulk orders have a discount. Musk tweeted Monday confirming, “cars sold to Hertz have no discount.” With this order, the Hertz fleet will be comprised of over 20% EVs and a major slice of Tesla’s annual production volume pie. Hertz is making the major investment after filing for bankruptcy mid-pandemic and returning under new ownership, who are focused on electrification, shared mobility, and the digital-first experience.
In less than 2 years, Tesla’s market value grew from $100 billion to $1 trillion, in comparison to say, Amazon, which took 8 years to do the same. Musk has grown his wealth to almost $300 billion alongside his ventures, making him the world’s wealthiest person. It’s easy to say Elon Musk is not just an EV automaker CEO. He also owns SpaceX, is the co-founder of PayPal through X.com, and avid Tweeter, an owner of crypto but more specifically (and uniquely), dogecoin, as well as being a literal genius, but somehow also relatable and charismatic. Part of his success has to be tied to his personality.
However, when it comes to Tesla, people may argue about its position as a business and what sector it may fall into. Yes, they produce electric vehicles, but they have entered an existing transportation ecosystem while paving their own path by creating a “value chain or stack” similar to how one may think of Apple’s suite of products. You can purchase a Tesla vehicle or two, then buy their wall charger mount, visit the expanding charging stations all over the U.S., and pair it with Tesla solar for your home. InsideEvs says,
“They’re part of a system, which includes renewable energy, storage, smart grid technologies, vehicle autonomy, and various software products to make It all work together.”
For many, the growth of Tesla is making a new era of sustainable and environmentally friendly transportation. The company is entering the game and playing fair while also setting their own rules by defining their own sport entirely.
Tesla, and Musk, are something to watch – no doubt about it.