Tesla closes in on $1trn market cap after penning major deal

The Tesla share price surged on Monday as the company confirmed it received an order of 100,000 electric rental cars from Hertz.

Hertz’s order is one of Tesla’s biggest ever and brought the electric vehicle manufacturer’s market cap to within touching distance of joining the $1trn club.

The $1trn club is an elite group of the world’s largest companies, which includes (in order): Apple, Microsoft, Saudi Aramco, Alphabet (Google) and Amazon.

Another factor in Tesla’s share price rise was the news that its Model 3 is the first EV to top monthly sales of new cars in Europe.

At the moment Tesla is dealing with a backlog of orders, thanks in part to supply chain disruptions, which does highlight the strong levels of demand for EVs, and specifically those with a ‘T’ on them.

Hertz’s order will be mostly Model 3s and their customers will be able to rent them as of November.

"We absolutely believe that this is going to be a competitive advantage for us," said Hertz CEO Mark Fields. "We want to be a leader in mobility... Getting customers experience with electrified vehicles is an absolute priority for us."

Fields also confirmed that customers will not have to return their Tesla fully-charged, which is generally the case for gas-powered vehicles.

Tesla’s cheapest Model 3 sedan sells for $44,000 meaning the total value of the order is likely to be worth more than $4.4bn, although neither Tesla or Hertz has confirmed this.

Finally, Tesla Elon Musk is now worth over $250bn. Not bad for a Monday.

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