Tesla shares rise: electric car maker now worth $ 1 trillion – economy

The fact that there are companies that are considered more speculative investments in the stock market and still worth something is not entirely unusual. But a trillion dollars? “If you were wondering,” writes the Bloomberg news agency, “which publicly traded company” would be the first to cross the $ 1 trillion mark on the stock market, then “the wait is over.” The answer is: Tesla.

Shares of the electric car maker rose more than twelve percent on Monday and were worth $ 1,000 each for the first time. The consequences – more than symbolic: a market capitalization of trillion dollars is more than the Internet platform Facebook. With numbers of this magnitude, it’s definitely worth converting – that’s around 860 billion euros.

This makes Tesla the fifth largest publicly traded company in the United States. An automaker that launched its roadster, the first fully electric production vehicle with lithium-ion batteries, on the market starting in 2008. A classic car maker like Ford, just for comparison, was founded 105 years before this roadster in Detroit and is now worth nearly $ 64 billion on the stock market. It shows how things are going right now.

How does such a price increase come about? The reason for this is a large order from car rental company Hertz, which said it would buy 100,000 cars from Tesla by the end of next year. Cars are to be used at Hertz in US and European cities. “Electric vehicles are now commonplace,” said Mark Fields, CEO of Hertz. The car rental company’s plan is ambitious. He wants to build “the largest fleet of electric vehicles in North America and one of the largest in the world.” While rental companies have had electric cars in their lineup since 2011, the goal is now to equip about a fifth of their own rental car fleet with electric vehicles, and the Tesla Model 3 is expected to be available in November. And because it would hardly be of interest to customers without it: Hertz wants to install thousands of charging stations in its rental points.

The subject animates everyone. Sixt recently announced that it wants to invest more than 50 million euros in extending the charging infrastructure. Reason: As with gasoline cars, just before you return the car, drive past the gas station and refuel, electric cars are not easier. Especially not if you have to wait longer than an hour for the battery to be fully charged.

At the start of the year, Tesla was valued at around $ 700 billion on the stock market, at the start of 2020 at $ 100 billion. This was not without consequences for the financial situation of the boss of Tesla. According to Forbes, Elon Musk is currently the richest person in the world with a fortune of $ 255 billion, ahead of Amazon founder Jeff Bezos. However, Musk isn’t just a Tesla boss. His empire also includes a number of other companies, including space company Space X. It’s quite possible that Musk will earn a lot more in the near future from his space activities.

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