Traditional carmakers are probably furious and a little afraid of how high Tesla stock is valued these days.
When it comes to carmakers, Tesla really does stand out. They’re just as much as a software company as a car company, and they seem to be worth a lot more in the stock market than they are in the real world. And their market value seems to be pegged to what attention-grabbing headlines say about them. This week, two pieces of news tipped Tesla’s market valuation above the 1 trillion dollar mark for the first time in its history.
This puts Tesla in the same league as other US-based tech firms that have achieved the trillion-dollar valuation.
Major Order From Hertz
The first piece of news that tipped it over the edge was when car rental company Hertz made an order for 100,000 vehicles from Tesla in an effort to electrify its fleet of rental cars. During the pandemic, Hertz went bankrupt in the US. However, now the company has restructured and is looking forward to an electrified future. The vehicles will be delivered to Hertz locations over the next 14 months and customers using Teslas rented from Hertz will have access to Supercharger locations. Hertz will also be developing their own charging station network.
Apparently, Hertz did not get a major fleet discount on this massive order and the deal is anticipated to be worth about $4.2 billion to Tesla. Tesla are one of the very few car companies that have managed to circumvent the supply issues linked to the ongoing chip shortage. They’ve done this by rewriting their software to work on alternative chips that are available on the market.
Leading Sales In Europe
The other major piece of news for Tesla was that its Model 3 became the first non-European car company to lead the sales charts in history. This happened in the month of September 2021, according to Jato Dynamics’ data. The Model 3 managed to outperform all its European rivals by taking a 2.6% market share and selling 24,600 in the continent. It sold better last month than traditional favourites like the Volkswagen Golf and Renault Clio.
