Hertz requests 100,000 Tesla cars for rental in the US 0:52
New York (CNN Business) -
Tesla just became the sixth company in American history with a value of $ 1 trillion.
The shares rose more than 12% on Monday to close at about $ 1,025, fueled by two good news: Hertz announced a record order of 100,000 Tesla cars for its fleet, and influential Morgan Stanley auto analyst Adam Jonas, it recently raised its price target for Tesla to $ 1,200 per share.
That sizable one-day gain put Tesla (TSLA) just above the $ 1 trillion mark.
That market capitalization is less than half that of Apple (AAPL), the world's most valuable company at $ 2.5 trillion, and number two on the list, Microsoft (MSFT), which is worth $ 2. , 3 billion.
Other members of the trillion dollar club are Alphabet (GOOG), Google's parent company, worth $ 1.8 trillion, and Amazon (AMZN), with $ 1.7 trillion.
ANALYSIS |
Tesla desperately needs a number 2 for Elon Musk
Tesla is the second-fastest company to hit the $ 1 trillion mark, reaching the milestone just over 12 years after its 2010 initial public offering (IPO). Facebook alone (FB), which needed just over 9 years from its IPO to reach a trillion dollars, it came faster.
It took Apple longer, reaching the mark more than 37 years after it went public in 1980, followed by Microsoft, which took a little more than 33 years.
It took Amazon 21 years, while Google reached the mark for the first time after 15 years.
It is not uncommon for companies that hit the $ 1 trillion benchmark to fall below it.
Tesla breaks earnings record again 1:05
Tesla outperformed Facebook on Monday, whose shares are falling after the publication of a wealth of internal documents known as "Facebook papers."
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Shares of Facebook (FB) closed more than 5% lower in trading on Friday, and even with a modest rally on Monday they are 17% lower than the peak earlier this year, when the company was valued. at more than $ 1 trillion.
Facebook's market capitalization closed Monday at $ 927 billion.
For Tesla, by contrast, Wall Street's enthusiasm for the future of electric vehicles has raised the company's market value to more than the total of the 11 largest automakers in the world combined.
Tesla is worth more than three times more than Toyota (TM), the second most valuable automaker, which has a market capitalization of approximately $ 280 billion, and boasts sales and earnings that dwarf those of Tesla.
Last year, Tesla sold just 500,000 cars worldwide, which means its current market value is equivalent to roughly $ 2 million per vehicle sold.
The company has already sold 627,000 cars so far this year and aims to have close to a million sales throughout the year.
That would still equate to a valuation of more than $ 1 million per vehicle, but clearly investors are nonetheless betting that Tesla will hit its target of 50% or more in annual sales growth in the next few years.
Tesla
