Tesla became the first US automaker to exceed $1 trillion in market cap, surpassing the combined of Toyota, Volkswagen, Daimler, General Motors, BMW, Ford and Honda.
(Graphic by CnEVPost)
The US stock market has added another member to the "trillion-dollar club" with the surge in Tesla's stock price.
Tesla shares jumped 12.66 percent to $1,024.86 at the close of trading on Monday, bringing its total market capitalization to about $1.027 trillion, making it the first US carmaker to surpass $1 trillion in market value.
This also makes Tesla the latest company in the US stock market to surpass the $1 trillion market cap threshold after Apple, Microsoft, Google and Amazon, and puts it well ahead of Toyota, Volkswagen, Daimler, General Motors, BMW, Ford and Honda combined.
Why did Tesla shares soar on Monday? The most immediate catalyst was a deal it reached with car leasing company Herz Global Holdings.
Herz, which is just four months out of bankruptcy protection, announced a major investment in EV rental fleet Monday, including an initial order for 100,000 Teslas by the end of 2022.
Beginning in early November and expanding through year end, customers will be able to rent a Tesla Model 3 at Hertz airport and neighborhood locations in US major markets and select cities in Europe, the company said.
With the 100,000 Teslas to be delivered over the next 14 months, they will help Herz build the largest electric car rental fleet in North America.
The order, which totals about $4.2 billion, is the largest deal ever for electric cars and locks in about 10 percent of Tesla's annual production capacity.
In addition, JATO Dynamics released data Monday showing that the Tesla Model 3 sold 24,600 units in Europe in September, making it the best-selling model in the region.
"This is both first time that an EV (electric vehicle) has led the market and the first time that a vehicle manufactured outside of Europe has occupied the top spot," JATO said Monday.
On Sunday, Morgan Stanley's Adam Jonas raised his price target on Tesla by 33 percent to $1,200 from $900 per share and reiterated his Overweight rating.
Jonas said Tesla has overcome an unprecedented industry supply shortage to deliver extraordinary sales growth and is among the top manufacturers in terms of profitability.
While Tesla soared, shares of its US-listed Chinese peers also surged.
Xpeng Motors rose 11.47 percent to $48.09, Nio rose 6.15 percent to $41.27 and Li Auto rose 6.07 percent to $34.25 by Monday's close.
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