- Tesla hit a $1 trillion valuation for the first time ever on Monday, after eclipsing $900 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.
Driven by record profits and a 100,000 vehicle order from Hertz, Tesla crossed the $1 trillion valuation milestone for the first time ever on Monday.
Tesla surged as much as 11% on Monday to a high of $1,005 per share. That move helped Elon Musk add more than $20 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 $250 billion.
The move on Monday comes just one trading day after the electric vehicle manufacturer surged past the $900 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 $1 trillion valuation, doing it in 18 years. That’s just behind Facebook, which briefly crossed the $1 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 $1 trillion valuation club include Amazon, Apple, and Microsoft, which all hit the $1 trillion valuation market 24 years, 44 years, and 46 years after their founding, respectively.