- Tesla hit a $US1 ($AU1) trillion valuation for the first time ever on Monday, after eclipsing $US900 ($AU1,202) billion on Friday.
- The move solidified Tesla as the second-fastest company ever to hit the milestone valuation, barely behind Facebook.
- Shares of Tesla have surged nearly 30% in October thanks to record profits and a 100,000 vehicle order from Hertz.
The move on Monday comes just one trading day after the electric vehicle manufacturer surged past the $US900 ($AU1,202) billion valuation level on Friday. A streak of solid earnings helped catapult shares of Tesla up nearly 30% in October, with the company reporting record profits and revenues in its third-quarter earnings report last week.
Consumers’ adoption of electric vehicles is accelerating quickly, and Tesla remains one of the best positioned companies to capitalize on the opportunity. The company is on track to sell nearly 1 million cars this year, and it has guided for 50% annual growth in vehicle sales over the next few years.
The surge in Tesla helped the company become the second-fastest in history to hit a $US1 ($AU1) trillion valuation, doing it in 18 years. That’s just behind Facebook, which briefly crossed the $US1 ($AU1) trillion mark earlier in June about 17 years after its founding, but well ahead of Alphabet, which crossed the milestone in 21 years.
Other members of the $US1 ($AU1) trillion valuation club include Amazon, Apple, and Microsoft, which all hit the $US1 ($AU1) trillion valuation market 24 years, 44 years, and 46 years after their founding, respectively.
Tesla surged as much as 11% on Monday to a high of $US1 ($AU1),005 per share. That move helped Elon Musk add more than $US20 ($AU27) billion to his net worth in a single day, as Musk owns about 22.4% of the electric vehicle manufacturer. Musk is now the richest man in the world and is worth more than $US250 ($AU334) billion.