Following Hertz’s announcement that they would be ordering 100,000 Tesla EVs for their rental lineup, Tesla (TSLA) shares rocketed up past $1,000.
Tesla is coming out of one of their best quarters ever and continues to take over the electric auto market with unbridled ferocity. The Tesla Model 3 has already become the single best-selling vehicle in Europe, and, with the Hertz deal, they are absolutely flying into Q4.
As of writing this article, Tesla’s stock is trading at just under $1,025 a share. What this means is that Tesla is joining Apple, Microsoft, Alphabet, and Amazon as a company worth over $1 trillion.
Tesla’s market capitalization is sitting at $1.03 trillion, thanks to the Hertz deal, as well as a note from Morgan Stanley.
“Following Tesla’s better than expected 3Q results, we are raising our price target to $1,200 (from $900 previously) and reiterate our OW rating. The change in target is driven predominantly by higher volume. Our previous forecast of 5.8 mm units by 2030 implied an annual growth rate of 23% (from 2021 to 2030) which trailed overall EV market growth. Our revised volume forecast of 8.1mm by 2030 units implies an annual growth rate of 28% which is slightly more than 1/2 the 50% growth rate targeted by the company over the long term which they reiterated in the 3Q call.”
— Morgan Stanley
In January of last year, Tesla’s market cap hit $100 billion for the first time. For it to more than double in less than two years is astounding, and speaks volumes about the world’s transition towards electric vehicles.