On a roll: Hertz’s 100,000-vehicle order helps Tesla, Elon Musk scale new heights

A recent order helped Tesla and its CEO Elon Musk gain huge amount of wealth as the company’s shares witnessed a huge surge. 

For the first time, US electric carmaker Tesla’s market value has broken through the $1tn mark. The company achieved the feat after receiving an order for 100,000 of its vehicles from the rental company Hertz.  

Due to the order, Musk’s personal fortune also went up by $36.2 billion. It was one of the biggest single-day jumps in the wealth of an entrepreneur.  

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During 2020 and 2021, the carmaker’s stock market value had soared as investors bet on accelerating sales of electric cars in the run-up to government bans on petrol and diesel cars to meet the climate targets.  

The shares of the company rose by as much as 9% to as high as $998 on Monday after the Hertz order announcement. It took Musk’s 23 per cent stake in Tesla to $289 billion. The stake also includes options worth over $50 billion that have vested under Musk’s 2018 compensation package.   

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It took it past the milestone, although they later fell back below that level.   

Based on the number of shares disclosed in its latest filing, Tesla shares must trade above $995.75 to stay above the $1tn (£727bn) level.  

(With inputs from agencies)