Tesla Hits $1 Tln Market Cap

Elon Musk's EV giant Tesla Inc (TSLA) has touched one trillion market capital, despite being the lowest revenue-making company in the S&P 500 index. The company reached the milestone after ride-hailing service, Hertz Global Holdings Inc ordered 100,000 Teslas to add to its fleet.

Tesla joins the esteemed list with Apple Inc (AAPL), Microsoft (MSFT), Alphabet (GOOGL), and Amazon (AMZN). But analysts are wary that Tesla's stay on the list is not going to be for long as other EV makers will soon bite into its currently unrivaled industry shares. Tesla sold 79% of all EVs in 2020, but experts believe that the share will fall to 20% by 2025.

In recent times, almost all the major automobile manufacturers have decided to turn to make electric vehicles and completely stop manufacturing combustion engines for environmental reasons. While companies like General Motor Company (GM), Ford Motors (F) are still in their early stages of making EVs, Tesla has been the majority shareholder of the industry for more than a decade, so, it is not at all a surprise to anyone that Tesla is benefiting from this boom.

IHS Markit associate director Michael Fiske said to CNBC, "It's no surprise that Tesla's still dominating electric vehicle sales because they're the only ones that really have viable products in full swing. In a growth market, it's extremely challenging to maintain the majority market share, regardless of industry. … As we start to move toward a larger and really significant number of manufacturers that are going to be playing in the space, Tesla has to lose share."

Hertz on Monday announced that it will offer the largest Electric Vehicle rental fleet in North America with an initial order of 100,000 Teslas by the end of 2022.

With the current order, Electric Vehicles will comprise more than 20 percent of Hertz's global fleet and is expected to be supported by a combination of Level 2 and DC fast charging in approximately 65 markets by the end of 2022 and more than 100 markets by the end of 2023. Also, the company is teaming up with Tom Brady for a new "Hertz, Let's Go!" campaign.

Hertz said, beginning in early November and expanding through year-end, customers will be able to rent a Tesla Model 3 at Hertz airport and neighborhood locations in U.S. major markets and select cities in Europe. Customers who rent a Tesla Model 3 will have access to 3,000 Tesla supercharging stations throughout the U.S. and Europe., the company noted.

With Tesla hitting $1 trillion, the company CEO, Elon Musk has also widened the gap between him and Jeff Bezos. According to reports, Musk's net worth as of now is $300 billion, almost $100 billion richer than the former Amazon supremo.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT