(WSJ) Tesla has climbed above $1 trillion in value following a stock surge to become the seventh company and the first car maker to join the trillion-dollar club after Hertz Global Holdings, Inc. ordered about 100,000 of its Model 3 to be delivered before the end of 2022.
The deal is estimated to cost the car rental company about $4 billion, and Tesla CEO Elon Musk said on Monday that there would be no discount on the sale.
Hertz has announced that its customers can rent the Tesla Model 3 at airports and other major cities in the US and part of Europe from early November.
After the announcement, Tesla stock rose more than 12% to close at $1024.86, with the market capitalization surging to $1.03 trillion. The electric-car maker’s stock price valuation is more than 100 times the estimated earnings, more than triple the S&P 500 index ratio.
Hertz shares also rose 10% to $27.17, even as the company anticipates relisting on a major exchange before the end of the year.
Hertz is working on a bigger plan to increase the electric car options for its customers. Currently, 20% of its fleet is electric vehicles and continues to grow since it introduced them in 2011.
Tesla’s gains are more than 40% YTD, while Musk’s stake in it has now exceeded $300 bn.
TSLA: NASDAQ is down 0.084% on pre-market, HTZZ: OTCMKTS is up +10.04%.
