Business

Tesla’s Market Cap Skyrockets After Rental Car Company Orders 100,000 Cars

No featured image available

Tesla’s market capitalization surged to $1 trillion after the rental car company, Hertz, ordered 100,000 vehicles Monday from the electric vehicle manufacturer, multiple outlets reported.

Tesla’s stock surged to over $1,045 a share Monday joining other trillion-dollar market cap companies like Apple, Amazon and Microsoft, CNBC reported. The company’s stock closed at 1,023.86, a 12% increase on the day.

Hertz’s purchase, which is scheduled for 2022, will bring in a reported $4.2 billion for Tesla, making it the largest purchase of electric vehicles, Bloomberg reported.

Wild $T1mes!

— Elon Musk (@elonmusk) October 25, 2021

Tesla Chief Executive Officer Elon Musk celebrated on Twitter before the markets closed, saying, “Wild $T1mes.”

Tesla’s stock has soared in recent years, taking less than two years for its market cap to increase from $100 billion to $1 trillion, The Wall Street Journal reported. It took Amazon over 8 years to grow its market cap the same amount.

Hertz previously filed for U.S. bankruptcy in May 2020 after the COVID-19 pandemic rocked the company, CNBC reported. Roughly 20% of the company’s fleet of cars will now be electric vehicles once the purchase is complete, the WSJ reported.

Other car companies are pushing for electric vehicle adoption, increasing their investments in battery production. Toyota Motor Corporation and Jeep parent company, Stellantis, announced on Oct. 18 that it would build electric car battery factories in the U.S.

Toyota said it will invest roughly $3.4 billion in electric car battery factories through 2030, while Stellantis announced a joint venture with LG Energy Solutions to develop batteries in the U.S.

Tesla did not immediately respond to the Daily Caller News Foundation’s request for comment.