Road to $1 Trillion, Tesla Soars

Irfan Ishfaq
4 min readOct 26, 2021

Tesla’s Valuation Tops $1 Trillion After Hertz’s Plan to Buy 100,000 Tesla EVs

Tesla EV

Tesla inc test valuation shot past one trillion dollars on Monday with the stock closing at a record high after Hertz Global Holdings Inc announced plans to order 100 000 Tesla vehicles and a Morgan Stanley analyst raised his forecast for sales in production Tesla stock Tesla plus 12.66 rallied more than 12 per cent to end at 1024.86 boosting the electric car maker valuation to 1.1 trillion dollars chief executive Elon Musk tweeted wild dollar signed tone mess right at the close with fans cheering the milestone it passed one trillion dollars tesla joins a select group of mega tech stocks that include Apple inc
the Apple minus 0.03 with a market cap of 2.5 trillion dollars followed by Microsoft corp MSFT minus 0.33 at 2.3trillion dollars Google parent alphabet inc Google plus 0.11 Google minus 0.09 per cent at 1.8 trillion dollars in Amazon.com inc Amazon minus 0.46 per cent at 1.7 trillion dollars Tesla edged out Facebook inc FB plus 1.26 per cent to become the fifth-largest u.s company by market cap Facebook has crossed that one trillion dollars mark but its current valuation is around 930 billion dollars Tesla got to 1 trillion dollars from 900 billion dollars in a record-setting two trading days hurts
Hertz said the initial order of a total of one hundred thousand Teslas will be made by the end of 2022. the car rental company also said it would also invest in new charging infrastructure across its global operations in a bid to offer the largest EV rental fleet in North America the order was initially reported earlier Monday by Bloomberg Hertz emerged from bankruptcy this summer saying it was a much stronger company ready to capitalize on the summer’s travel rebound and skyrocketing car rental prices amid a scarcity of rentals Hertz last week announced plans to offer shares and returned to a big-league stock exchange the company listed a profit for the first six months of the year but also more than eight billion dollars in debt while Hertz is in the early stages of electrifying its rental car fleet.

Hertz

Tesla getting an order of this magnitude highlights the broader of adoption underway in our opinion as part of this oncoming green tidal wave now hitting us analyst Dan Ives wrote in a note to clients the Hertz deal is a major feather in the cap for Tesla and speaks to where demand is heading in the transformation hitting the auto sector globally he said Dan Ives rates Tesla had outperformed with a one thousand one hundred dollar stock price target adam jones with Morgan Stanley raised his price target on Tesla shares to one thousand two hundred dollars from nine hundred dollars in a note Monday he reiterated the equivalent of a buy rating on the stock the change in target is driven predominantly by higher volume Jonas said Morgan Stanley's previous forecast of 5.8 million vehicles by 2030 implied an annual growth rate of 23 per cent which trailed overall the market growth he said the analysts revised volume forecast of 8.1 million vehicles by 2030 units implies an annual growth rate of 28 which is slightly more than half the 50 per cent growth rate tesla has targeted reasons not to go with that 50 per cent growth rate include continued supply chain constraints infrastructure constraints and a host of competitive and geopolitical forces that will guide the development of national electric transport utilities over time Jonas said tesla again has raised prices of some trims for each of its vehicles in us including a two thousand dollars price increase for a standard range model three the repeated price increase reflects robust consumer demand for tesla’s vehicles also demonstrated by the growing wait time for delivery on many variants Emmanuel Roessner at Deutsche bank said in a note Monday Tesla reported quarterly profit and sales last Wednesday despite warning investors that chip shortages port congestion and other supply chain and infrastructure challenges are preventing its factories from running at full speed meanwhile hertz said it was teaming up with NFL quarterback tom
Brady to headline its f campaign electric vehicles are now mainstream and we’ve only just begun to see rising global demand and interest said Hertz interim chief executive Mark Fields in a statement the new Hertz is going to lead the way as a mobility company starting with the largest ever rental fleet in North America and a commitment to grow our f fleet and provide the best rental and recharging experience for leisure and business customers around the world Hertz said its customers will be able to rent a Tesla Model 3 at certain locations beginning in early November and will be expanding through year’s end the company is also installing chargers throughout its networks giving customers who rent EV's access to three thousand supercharging stations through us in Europe Tesla stock has soared forty-seven point four per cent year to date while the p 500 index six plus zero point four seven per cent has gained 21 per cent

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