Yesterday, Tesla shares began to rise in price on the news of a contract with the Hertz rental company, which intends to purchase 100,000 electric vehicles of the brand to lease them in the USA and Europe. Bidding ended with the growth of Tesla shares by 12.7%, which allowed the company’s capitalization to exceed the $ 1 trillion mark for the first time. None of the automakers have been able to do this before.
Tesla becomes the first automaker with a capitalization of over $ 1 trillion
As a matter of fact, there are not so many companies in the world with such capitalization. Examples include Apple, Amazon, Microsoft, Facebook, and Alphabet (Google). In fact, at its current stock price, Tesla is the fifth largest US public company by market cap, beating Facebook. The stock market’s reaction to the Hertz deal surprised even Elon Musk himself; as he admitted that Tesla’s current problem is not lack of demand, but limited capacity. According to analysts at Wedbush Securities, demand for Tesla’s electric vehicles now exceeds supply by about 10%. Tesla shares closed yesterday at $ 1,024, but Wedbush believes that in the future they may rise in price to $ 1,500.
Apparently, investors were encouraged by the fact that a large car rental network has taken a real step to further popularize them. After delivery of all 100,000 Tesla cars by the end of 2022, over 20% of Hertz’s rental fleet in the US and Europe will be electric vehicles. It also became known yesterday that the Tesla Model 3 at the end of September became the most popular new vehicle in Europe among cars with all types of power plants. Investors were not frightened by the claims of the American NHTSA department about Tesla’s use of the beta version of the software autopilot on US public roads, nor the defects in the recently presented FSD Beta 10.3 update, which were promptly fixed.
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Tesla’s revenue from sales of electric vehicles in China is only two times lagging behind the American one
The Shanghai Tesla enterprise was not only built in the shortest possible time; and was able to operate without the presence of local shareholders in the authorized capital; unlike many other industries; but by the third quarter of this year it had become the largest exporter of the brand’s electric vehicles. In the US home market, Tesla makes only twice as much sales of cars as it does in China.
The alignment of forces with the launch of factories in Texas and Berlin may change; but so far Tesla’s Chinese site is showing solid progress; allowing the company to now deliver a level of productivity of 1 million electric vehicles per year. As CNBC notes with reference to Tesla’s reporting, in the third quarter; the automaker’s revenue from the sale of electric vehicles in China reached $ 3.11 billion; and in the United States – $ 6.41 billion. If a year ago, the share of Tesla products sold in the PRC market did not exceed 20%; then in the third quarter of this year it increased to 22.6%. If the trend continues, then soon almost every fourth electric car of the brand will find a buyer in China.