Tesla’s market capitalization has surpassed $1 trillion!

Tesla’s market capitalization has surpassed $1 trillion following Hertz’s order for 100,000 of its vehicles.

Hertz, a rental car company, has placed an order for 100,000 Teslas as part of a larger plan to electrify its fleet. Tesla’s Model 3 sedans will be available to rent from Hertz in major US and European markets beginning in early November, according to a press release. The news comes just months after Hertz was able to avoid bankruptcy.

Tesla’s stock price rose to $998.74 early in the day after the purchase was announced, bringing its market cap to over $1 trillion, before falling again. However, by the time the market closed for the day, the price had risen again, finishing at $1,024.86 per share, with a market capitalization of $1.01 trillion. As CNBC points out, this puts it in the company of other companies with trillion-dollar market caps such as Apple, Amazon, and Microsoft. At

Bloomberg broke the story first, claiming that the purchase is the single largest order for electric vehicles ever, worth $4.2 billion in revenue to Tesla. In pre-market trading, the automaker’s stock was up 4.3 percent on the news. This morning, it was also announced that Tesla’s Model 3 was the first electric vehicle to top European monthly sales charts in September. Despite chip shortages in the automotive market, the company reported record sales in the third quarter earlier this month.

Anyone renting a Tesla from Hertz will be able to use the automaker’s 3,000 superchargers located throughout the United States and Europe. Hertz plans to supplement these chargers with “thousands” of its own, dispersed “across its location network,” according to the company.

After the pandemic hit the car rental market hard, Hertz filed for bankruptcy in May of last year. Investors led by Knighthead Capital Management and Certares Management eventually refinanced the company, which is more than a century old, for $5.9 billion. Hertz now plans to electrify nearly all of its roughly 500,000 cars and vans, according to Bloomberg, with the Tesla order constituting a significant first chunk.

“Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest,” Hertz interim CEO Mark Fields said in a press statement. Starting with the largest EV rental fleet in North America and a commitment to grow our EV fleet and provide the best rental and recharging experience for leisure and business customers around the world, the new Hertz will lead the way as a mobility company.”

Hertz has launched a new ad campaign featuring Tom Brady to promote the move.