Tesla's $1tn valuation consolidates Elon Musk as world's richest man
Tesla boss (TSLA) Elon Musk has reinforced his position as the richest man in the world as Tesla’s market value has broken through the $1tn (£725.7bn) mark for the first time after receiving an order for 100,000 of its vehicles from the car rental company Hertz (AZC0.F).
Tesla joins tech companies Apple (AAPL), Amazon (AMZN), Google owner Alphabet (GOOG), Facebook (FB) and Microsoft (MSFT) among the US firms who have passed the trillion-dollar mark. Apple became the first company to achieve the landmark in 2018.
Tesla's Model 3 was the UK's best selling car in September, with 6,879 units registered in the month, according to data from the Society of Motor Manufacturers and Traders.
The company saw a record quarter as the Model 3 was also the bestselling car across Europe in September — the first time a battery electric vehicle had topped the monthly sales charts in the region.
Figuring out precise share counts isn’t all that easy. Share counts change. And quarterly earnings are reported based on average share counts over the quarter.
“As of October 21, 2021, there were 1,004,264,852 shares of the registrant’s common stock outstanding,” reads Tesla’s latest quarterly financial report.
That means Tesla’s market cap hit $1,049,456,779,340 based on the daily high.
The company is set to benefit from accelerating sales of electric vehicles (EVs) in the run-up to government bans on petrol and diesel cars to meet climate targets.
Tesla shares would need to end the day at or above $995.75 to close above $1 trillion. That looked like a done deal based on where the stock was trading an hour before the close.
Tesla’s fully diluted share count, for additional context, is closer to 1.2 billion shares outstanding. That number includes things such as management stock options that aren’t exercised, but are likely to be based on where shares are trading.
Based on the approximate diluted share count, Tesla’s market cap is about $1.25 trillion.
The shares were up 14.6% in afternoon trading at $1,040.55, sent higher by a positive research note from Morgan Stanley analyst Adam Jonas, who raised his target for the price to $1,200 from $900. News that Hertz (HTZZ) is buying Tesla vehicles to rent boosted the stock as well.
In early afternoon, Tesla was just off its intraday high of $1,045. That gave Tesla a market capitalization—the price per share multiplied by the share count—of north of $1 trillion.