On Monday, the electric-vehicle giant Tesla became the first automaker to reach $1 trillion in market value, following news that the rental car company Hertz has placed an order for 100,000 Tesla Model 3 vehicles. While the financial terms were undisclosed, the purchase could mean revenue of $4.2 billion for Tesla based on Model 3 list prices, making it the largest sale of EVs ever. Starting in November and expanding through next year, customers will be able to rent a Tesla from major Hertz locations in the U.S. and Europe. Tesla met the $1 trillion market cap when shares hit $998.22 and closed at $1024 for the day, up 12.7%. Following the stock’s rise, CEO Elon Musk’s personal wealth also grew by $36 billion, shattering a new record for a single-day increase.
Zoom In: The purchase is part of Hertz’s plan to grow its EV fleet by the end of 2022, as the US government continues to pressure rental car companies to reduce their carbon emissions. Once the vehicles are acquired, 20% of Hertz’s fleet would be all-electric. The company will also install thousands of EV chargers in its markets and give drivers renting a Model 3 access to 3,000 Tesla charging stations.
