Tesla has officially joined the league of companies valued at over a trillion-dollar in valuation based on data released by Dow Jones. The valuation followed the rise in Tesla shares predominantly, and they almost doubled in the past two years. The surge in Tesla shares got informed by increased demand for electric cars across the United States.
Tesla production and demand got a big push as investors made enormous orders for the electric autos. Hertz Global Holding was the leading partner in this, ordering close to 100,000 units of Tesla electric cars that should get delivered in the next 12 months. In addition, the bulk purchase made by Hertz Global Holding Incorporation has pushed the adoption of Tesla technology cars to the mainstream in a big way.
Tesla now joins a list of growing companies that have achieved the one trillion-mark valuation: the e-commerce retail giant Amazon, tech giant Apple and Microsoft, and Google incorporation. Facebook has been scrapped off the list after a severe decline in the value share of the social media giant leading to its decline in the company valuation. In the last few weeks, Tesla released the quarterly financial report, and it’s worth noting that the total combined capital from the nine significant automobiles makers in the United States cannot match what Tesla projected in the first quarter.
When the news broke on the 100,000 units order for Tesla electric vehicles by Hertz Global holdings incorporation and to Tesla founder and Chief executive officer Elon Musk to come out in public through his official Twitter handle to set the record straight. He stated that the order request only made the production for the electric vehicle high and not the demand for the car.
On the contrary, the news led to a significant rise in the demand and value of Tesla shares in the New York Securities exchange. The shares rose to approximately $1024, which represented about a 12 percent increase in demand. Consequently, the need and change in share value led to the Tesla overall valuation shooting exponentially to get valued at $1.03 trillion. It’s also imperative to note that the latest development at Tesla made its founder and chief executive officer Elon musk rise to occupy the position of the wealthiest person globally. Tesla rose to stardom in quite a short period as it only took Tesla 24 months to grow from a valuation of about $100 billion to the current evolution of $1 trillion. Such impressive results took Amazon over eight years to reach the one trillion-dollar valuation.