It seemed both impossible and inevitable, and it's finally happened.
Elon Musk's Tesla has officially surpassed $1 trillion in market capitalization on Monday, becoming the fifth firm in the country to do so, after Microsoft, Alphabet, Apple, and Amazon, according to an initial report from Reuters.
In other words, Tesla has officially joined the club of Big Tech superpowers. And CEO Tesla Elon Musk knows it, tweeting "Wild $T1mes!" on Monday afternoon.
Wild $T1mes!— Elon Musk (@elonmusk) October 25, 2021
Tesla has officially joined the ranks of Big Tech
Tesla surged past the $1 trillion market cap threshold at roughly midday on Monday when its shares reached $998.22. Share prices seemed stuck just under $1,000 for a moment, then rocketed upward like a rocket from another company run by CEO Tesla Elon Musk: SpaceX. As of writing, Tesla shares are worth $1,024, an increase of 13% from this morning's opening value. This marks the first time the all-electric automaker's share price has gone beyond $1,000 per share. Shares went even higher on Monday as multiple news stories on Musk's all-electric automaker, like the purchase of 100,000 EVs by the car rental giant Hertz, broke. The deal will make 20% of Hertz's global rental fleet all-electric, and is reportedly worth $4.2 billion, according to a TechCrunch report.
Tesla's new trillion-dollar status was also bolstered by a note from Morgan Stanley analyst Adam Jonas, who said the company was raising its price target to $1,200 (up from $900). Another report from JATO Dynamics said that Tesla's Model 3 had climbed to the top of the charts in Europe in September, outselling any other conventional internal combustion engine. This exploding share price stands on the shoulders of last week's report from Musk's firm, when it reported a net income of $1.62 billion in the third quarter of 2021, nearly five times its income of $331 million in the same quarter of 2020. This record-breaking profit margin came despite a harrowing global chip shortage, with global supply chains extremely constrained, putting many industry juggernauts in a tight spot.
Elon Musk's Tesla will influence the rest of the 21st century
Tesla managed its net income despite the overwhelming majority of its sales coming from the automaker's less pricey Model 3 and Model Y vehicles, generating $13.76 billion in the third quarter, which is 56% higher than its $8.77 billion reported during the same quarter 2020. But today's news could easily become one of the biggest milestones in the firm's history, since, beyond the $1 trillion market cap threshold, the world can start to think about Elon Musk's tech empire as it thinks about Apple, Microsoft, Alphabet, and Jeff Bezos' Amazon, in that the decisions Musk and Tesla make will have repercussions not only in the economy, but also potentially in the history of the rest of the 21st century, shaping the future of the human race, and its number-one evolutionary trait: technology.
This was a breaking story and was regularly updated as new information became available.
Disclaimer: Some members of the IE team, including editors of this article, have personally invested in a number of cryptocurrency and stock markets, including Tesla. However, their private investment viewpoints have no impact on editorial content.