Tesla hits $1 trillion market cap after massive Hertz purchase




  • In Business
  • 2021-10-26 11:44:55Z
  • By Axios
 

Data: YCharts; Chart: Kavya Beheraj/Axios

Tesla joined one of the most exclusive clubs in the world Monday when an announcement about Hertz buying its cars sent its market capitalization over the $1 trillion mark.

Why it matters: No matter how high it rises, Tesla stock always seems to be able to outperform expectations.

Get market news worthy of your time with Axios Markets. Subscribe for free.

  • Tesla's six-month average market cap is now $686 billion - comfortably above the $650 billion maximum target embedded in a 10-year employment agreement that CEO Elon Musk signed in 2018.

  • The agreement also includes operational milestones. Musk has already met seven of them, with another three "probable," according to an SEC filing. Assuming that Tesla's market capitalization remains above $650 billion, then Musk will be fully paid out, earning 20.3 million shares of stock, way ahead of schedule.

  • Those shares are worth about $21 billion as of the close of trade on Monday.

By the numbers: Tesla stock was trading at $408 per share when S&P announced in November 2020 that it would finally be joining the S&P 500. The announcement precipitated a massive rally in the shares, which were trading at $650 on Dec. 21, 2020, the date Tesla actually joined the index.

  • Index fund investors don't seem to have overpaid: At $1,024.86 per share as of the close of trade on Monday, the car company has outperformed the index by more than 34 percentage points.

The bottom line: The only other companies in the world worth more than $1 trillion are Apple, Alphabet, Amazon, Microsoft and Saudi Aramco. That's pretty exalted company for Tesla to be in.

Go deeper: How Hertz's big Tesla deal could boost EV adoption for everyone

COMMENTS

More Related News

There
There's an easy way to tax billionaires that would actually work

Congress should tax the personal loans that wealthy Americans take out to avoid paying taxes on their wealth.

India tells public to shun Musk-backed Starlink until it gets licence
India tells public to shun Musk-backed Starlink until it gets licence

Starlink Internet Services, a division of billionaire Elon Musk's SpaceX aerospace company, as it does not have a licence to operate in the country. A...

Tesla Forgoes $1.3 Billion German Aid to Counter Critics
Tesla Forgoes $1.3 Billion German Aid to Counter Critics

(Bloomberg) -- Most Read from BloombergBillionaire Family Feud Puts a Century-Old Business Empire in JeopardyAsia's Richest Man Looks to Walton Family...

A leading infectious diseases expert has pleaded with Elon Musk, Jeff Bezos, and Warren Buffett to help fight coronavirus variants in Africa
A leading infectious diseases expert has pleaded with Elon Musk, Jeff Bezos, and Warren Buffett to help fight coronavirus variants in Africa

The plea, from the director of South Africa's Centre for Epidemic Response and Innovation, comes after a "worrisome" new variant emerged.

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business