'Tseonsla' Tesla... Market Cap Also Surpasses $1 Trillion (Update)

Hertz Orders 100,000 Units, Prices Surge 12%

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Baek Jong-min] The American electric vehicle company Tesla has finally been reborn as 'CheonTesla.' The stock price surge was driven by rental car company Hertz ordering 100,000 vehicles.

Tesla's stock price closed at $1,024.86 on the 25th (local time), up 12.662%. During the day, Tesla's stock price soared to as high as $1,045.

Tesla's stock price traded around $950 at the market opening, then reached $998 around 12:30 PM, approaching $1,000, and recorded $1,045 around 2:35 PM.

The Wall Street Journal reported that Hertz's decision to purchase 100,000 Model 3 vehicles caused Tesla's stock price to surge. The Journal estimated the order size at $4 billion based on the list price, but noted that rental car companies typically receive significant discounts on bulk orders.

[Image source=AP Yonhap News]

Hertz's stock price also rose by 9.5% in after-hours trading.

With the stock price surge that day, Tesla's market capitalization surpassed $1 trillion. The $1 trillion market cap club in the U.S. stock market has only been experienced by Apple, Microsoft, Amazon, Alphabet, and Facebook. Facebook recently left the $1 trillion club due to internal whistleblower issues.

Tesla took 18 years from its founding to reach a $1 trillion market cap, the shortest period among its peers. The time taken to join the $1 trillion club was 21 years for Google, 24 years for Amazon, 42 years for Apple, and 44 years for Microsoft.

Elon Musk, Tesla's CEO, celebrated joining the $1 trillion club by tweeting just before the market closed, "1 trillion dollar club is amazing (Wild $T1mes!)."