Tesla surpassed a market value of $1 trillion on Monday, making it the fifth such firm to reach the milestone. Shares in the electric carmaker climbed 12.6% after it struck a deal to sell 100,000 vehicles to the car rental firm Hertz. Tesla has been the world's most valuable carmaker for some time, but brands like Ford and GM make more cars. Previously only Apple, Microsoft, Amazon and Google-owner Alphabet have reached a $1tn valuation. For years, Tesla struggled to ramp up production of its cars, leading some investors to speculate it would fail. But last year the company, led by billionaire Elon Musk, upped its game and became profitable for the first time, prompting its shares to take off. Following the jump in its share price, Mr Musk's 23% stake in the business is worth around $230bn. The deal with Hertz is the biggest-ever rental car order for electric vehicles and seen as a further vote of confidence. What makes Tesla's achievement all the more remarkable is that it is the first carmaker to hit this milestone. Tesla is now worth as much as the combined market cap of the nine largest carmakers around the world, including automotive giants like Volkswagen and Toyota. Yet Tesla makes up less than 1% of global car sales. Elon Musk and company are being rewarded for anticipating the future direction of the industry.
