Samantha Subin
Tesla hits $1 trillion market cap for the first time after Hertz said Monday it would buy 100,000 electric vehicles.
News of the deal brought Tesla’s stock to a new record-high just one trading day after shares hit $900. The stock is currently up around 9%.
The deal comes more than a year after Hertz filed for bankruptcy protection during the height of the pandemic, as demand for travel and rental vehicles dropped.
Close up of Tesla logo on a charger at a Supercharger rapid battery charging station for the electric vehicle company Tesla Motors, in the Silicon Valley town of Mountain View, California, August 24, 2016.
Smith Collection/Gado | Archive Photos | Getty Images
Tesla hit a $1 trillion market cap on Monday following news that Hertz is ordering 100,000 vehicles to build out an electric vehicle rental fleet by the end of 2022.
The company joins trillion-dollar market cap companies like Apple, Amazon and Microsoft.
News of the deal brought Tesla’s stock to more than $997 midday, a new record-high just one trading day after shares hit $900. The stock is currently up around 9%.
The deal, which will bring in a reported $4.2 billion for Tesla, is the largest ever purchase of electric vehicles, Bloomberg previously reported.
Tesla could not be reached for comment.
Bloomberg also reported the cars are slated for delivery within the next 14 months and will be available to customers in the U.S. and parts of Europe as early as November, according to the people.
The deal comes more than a year after Hertz filed for bankruptcy protection during the height of the pandemic, as demand for travel and rental vehicles waned. This year, investors from Knighthead Capital Management and Certares Management said they would take over the company.
According to Jato Dynamics, Tesla’s Model 3 electric sedan became the first fully electric vehicle to top new car sales overall in Europe in September.
The feat marked the first time an EV led the market and the first time that a vehicle manufactured outside of Europe occupied the top spot.
For September, Tesla had 24,600 registered units in Europe, representing a 2.6% market share, according to Jato.
--CNBC’s Lora Kolodny and Michael Wayland contributed to this report.
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