Sunday, 5 December, 2021

Tesla is now worth more than $1 trillion

Tesla just became the sixth company in US history to be worth $1 trillion.

Shares popped more than 12% Monday to close at about $1,025, boosted by two spots of good news: Hertz announced a record order of 100,000 Teslas for its fleet, and influential Morgan Stanley auto analyst Adam Jonas recently raised his price target on Tesla to $1,200 a share.

That hefty one-day gain put Tesla (TSLA) just over the $1 trillion mark. That market capitalization is less than half that of Apple (AAPL), the most valuable company in the world at $2.5 trillion, and No. 2 Microsoft (MSFT), which is worth $2.3 trillion. Other members of the trillion-dollar club include Google parent Alphabet (GOOG), worth $1.8 trillion, and Amazon (AMZN), at $1.7 trillion.

Tesla is the second fastest company to hit the $1 trillion mark, reaching it just more than 12 years after its 2010 initial public offering. Only Facebook (FB), which needed just over 9 years from its IPO to reach $1 trillion, got there faster.

Apple took the longest, hitting the mark more than 37 years after it started trading in 1980, followed by Microsoft, which took a bit more than 33 years. Amazon needed 21 years, while Google reached the mark for the first time after 15 years. It's not uncommon for companies that reach the $1 trillion benchmark to slip back below it.

Tesla did on Monday surpass Facebook, whose shares are slipping following the release of a large trove of internal documents known as "The Facebook Papers."