Tesla Jumps Over $1 Trillion in Market Value on Hertz Deal
Tesla jumps above $1 trillion in value as the company strikes a deal for 100,000 cars with Hertz Global. Tesla shares surge 12%.
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- Tesla market cap tops $1tn, joining a group of only four other companies above that milestone
- Shares of Tesla rally more than 12% on Monday, surpassing $1,000
Tesla Strikes a Deal with Hertz for 100,000 Cars
Electric car-maker Tesla is now valued at $1 trillion after a Hertz deal lifted Tesla stock higher by 12%. In more detail, the car-rental company has purchased 100,000 Tesla vehicles to be delivered by the end of next year.
As a result, shares of Tesla crossed the $1,000 milestone for the first time ever, reaching a new closing high of $1,024 a share. Moreover, the company now boasts a valuation of $1.01 trillion, an accomplishment held by only four other companies today.
Tesla’s leap over $1 trillion put it in a group with Apple, Microsoft, Amazon and Google parent Alphabet. All are worth north of the $1 trillion threshold. Facebook, meanwhile, was part of the select group. However, it dropped below the milestone and is now worth $926bn as its shares retreated over the past few months.
Elon Musk Surprised by Tesla’s Jump Over $1 Trillion
Even Elon Musk, chief executive of Tesla, was surprised by the solid move higher. “Strange that [Hertz order] moved valuation, as Tesla is very much a production ramp problem, not a demand problem,” Mr. Musk said in a tweet.
Still, he praised the achievement by tweeting “Wild $T1mes!”, a nod to the $1 trillion valuation reached by his car company.
In the meantime, the jump in Tesla’s stock price lifted Elon Musk’s net worth to a staggering $289 billion. More precisely, the eccentric billionaire added $36 billion to his fortune on Monday due to his 21% stake in Tesla.
Bitcoin Hovers Sideways Near $63,000
In the cryptocurrency market, the price of bitcoin has been trading relatively flat early on Tuesday. In other words, the leading token is changing hands near $62,500, slightly below its opening price for the day. Ether, on the other hand, is modestly higher today. The Ethereum network’s native coin is gyrating near $4,200 per coin, up about half a percent on Tuesday.
The cryptocurrency market has been steadily moving higher in recent weeks. Furthermore, bitcoin’s new all-time high of $67,000 sparked optimism that the rally in crypto is still strong. Despite regulatory challenges and environmental concerns, the crypto community is working to find ways to progress and develop.
Economic Data Coming Up Today (EST times)
Traders and investors today will be following the consumer confidence report coming from the US at 10:00 am. Later, inflation data from Australia for the third quarter is slated for release at 08:30 pm.
The consumer price report will highlight whether inflation in Australia continues to rise, similarly to all major economies. The numbers could increase the volatility of the Australian dollar. As a result, traders will look for opportunities to enter the currency market.
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