Tesla hits $1 trillion market value; receives largest order

Tesla Inc. reached $1 trillion in market capitalisation
after obtaining its largest-ever order from the rental car company Hertz on Monday according
to a report by Reuters.

Hertz asked for 100,000 Tesla cars by the end of
2022.

The rental car firm is emerging from bankruptcy and is attempting to resurrect its once-dominant brand. A consortium of investors, including Knighthead
Capital Management, Certares Opportunities, and Apollo Capital Management, is
leading the charge to save Hertz.

Also Read: Shiba Inu touches all-time high, falls after Elon Musk’s tweet

“We absolutely believe that this is going to be a competitive advantage for us,” interim Hertz CEO Mark Fields stated of the
Tesla order.

“We want to be a leader in mobility. … Getting
customers experience with electrified vehicles is an absolute priority for
us.”

Tesla’s cheapest Model 3 sedan starts at around $44,000,
making the purchase worth about $4.4 billion, if the whole order were for its
mass-market sedan.

Fields refused to comment on the amount Hertz paid
for the order.

With the latest purchase, Hertz expects electric vehicles
to account for more than 20% of its global fleet. Fields noted an increase in
the number of electric vehicles for sale as well as customer interest in
electric vehicles.

Also Read: NIFTY today: Top losers on October 25, 2021

“It (the Hertz order) puts an exclamation point
under guidance for 50%+ growth in deliveries,” Roth Capital analyst Craig
Irwin stated. “Another solid piece of evidence EVs are going
mainstream.”

“Electric vehicles are now mainstream, and we’ve
only just begun to see rising global demand and interest,” Hertz interim
Chief Executive Officer Mark Fields conveyed to Reuters.

Hertz recently announced that it will be deploying
thousands of chargers across its network. Customers renting a Tesla Model 3
will have access to 3,000 Tesla supercharging stations across the US and
Europe.

Also Read: US vaccine mandates create conflict with defiant workers

Elon Musk, Tesla’s CEO, has set a goal of increasing
yearly sales by 50% on average, eventually reaching 20 million vehicles per
year. That would be more than double the present market leaders Volkswagen AG
and Toyota Motor Corp. (7203.T).