Tesla became the fifth company to join the Elite Trillion dollar club

Tesla to become 5th company to join the trillion dollar club

Tesla may still have a presence in only a few countries around the world, but the EV giant continues to expand its dominance and became a leader in the electric mobility ecosystem, with its market value exceeding $1 trillion for the first time on Monday. And that helped CEO Elon Musk to grow his wealth by 11.4% to $255.8 billion (again he took the 1st position of being the richest man alive).  In this article, we will see how within a day or so the company surpassed the mark, and its current standing with analysis. We will also see despite the largest number of car manufacturers like Volkswagen, how Tesla became the 1st carmaker to reach the trillion-dollar market cap.

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Tesla received a colossal order from Hertz

Hertz, one of the biggest car rental companies, orders 1 lakh EVs from Tesla. That announcement from Hertz helped the company to surge its share to more than 12% on Monday. Hertz said you will get a model 3 at the airport in the major U.S. market and even across Europe. Last month we heard another piece of news that Model-3 was the best-selling Tesla-Model in Europe. If we try to assume a mathematical number of the deal between these two company that will be around $4billion (as a single model-3 cost around $40,000). As per BBC, Hertz will pay the amount over the next 14th months, also the company is planning to build a network of charging stations.

Impact of Hertz Tesla Deal
Hertz-Tesla Deal

Share Value

The share price of Tesla (TSLA) touched the all-time high of $1045 and closed at $1024 towards the end of the day. Before all the news of yesterday, it was already up 8% in the last week and 40% in the last three months. TSLA is the 5th became market cap in the S&P and almost 2% of the index. Till now the share price has surged to more than 2400% in just 2 years. So, we can say that Elon’s Tesla is going to the moon.

Tesla Share price reached a all time high of $1045
Tesla Share Price

Another news helped the share price to climb up is, Morgan Stanley’s Adam Jones reiterates overweight from 900 to 1200 following the company’s better than expected Q3 results. Though the share price hits $900 in January, and then it came down to $600-$700 for a while and finally it crossed the thousand mark.

know more: What are the possibilities of TATA to win the EV market in India

Why Tesla is a big player?

Tesla became the first automaker to join the Elite Trillion Dollar Club. For Amazon, it took around 23 years to join that club where Tesla needed just 11 years, how? Tesla produced just 5 lakh cars last year compared to Volkswagen’s 9.2 million. Even Tesla makes less than 1% of global car sales. Despite all these how Tesla joins the club sooner than other car makers?

Just imagine the name of the Global EV player, if you are like most of us the name will be “Tesla“. By the end of 2014, the car hit all-time sales records in the U.S. with over two thousand five hundred marks, in Q1 2015 sales reached a new high at 10,030. And it continues to sore after that. Tesla also does a few things differently that are tough for every brand to follow…

a) The company always produces and delivered a concept car before making it available in the market. That helps them to redesign or add something based on consumers’ feedback.

b) Most of the car manufacturers sell through franchised dealerships, but Tesla does something differently, it sells directly to consumers. It has created a global network of company-owned showrooms.

c) In some areas, the company employs what it calls Tesla Rangers—mobile technicians who make house calls. In some cases, the service is delivered remotely. Technicians can fix some problems without ever physically touching the car, how? Because the Model-S can wirelessly upload data that technicians can view.

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