October 25 (Reuters) – Tesla Inc. (TSLA.O) traded more than $ 1 trillion in market value on Monday following a major order from rental company Hartz, a deal that reinforces the electric car driver’s desire to lead the entire car industry for sale over the next decade.
Tesla shares rose 14.9 percent to $ 1,045.02, making it the world’s most valuable automobile, according to a recent Reuters report.
Tesla CEO Elon Musk said he was surprised by the speed of the attack. Investor Fund Gerber Kawasaki and Tesla shareholder Ross Gerber commented on Twitter:
“Wild $ T1mes!” Musk wrote on a separate Twitter account.
Tesla is the first car maker to join a trillion-dollar company that includes Apple Inc. (AAPL.O), Amazon.com Inc. (AMZN.O), Microsoft Corporation (MSFT.O) and Alphabet Inc. (GOOGL.O). .
Most cars are not proud to sell to rental companies as they often offer discounts on slow-moving models. However, the decision to order 100,000 Tesla vehicles by the end of 2022 for Tesla and investors Hertz shows that electric vehicles are no longer a good product but that they will soon dominate the wholesale market.
“Electric vehicles are now a major player, and we are beginning to see a growing global demand,” Hertz interim chief executive Mark Fields told Reuters.
Tesla CEO Elon Musk has set an average annual sales growth target of 50%, eventually reaching 20 million vehicles a year. That’s more than double the current sales leaders Volkswagen AG and Toyota Motor Corporation (7203.T).
In some major markets, consumer demand for electric vehicles is declining. The Tesla Model 3 was the best-selling vehicle of its kind in Europe last month, JATO Dynamics Consulting reported Monday. Read more
Tesla also appeared on Monday to address regulatory issues that threaten trade in China. The company said it has opened a new information and research center in Shanghai to meet the needs of the country’s government. Read more
However, Tesla faced new US pressure on Monday. The new head of the National Transportation Safety Board sent a letter to Tesla asking why Tesla was releasing its “full self-driving” software, although the company did not officially respond to inquiries about NTSB’s automatic driving system safety.
Craig Irwin, a Root Capital analyst, said: “Another strong evidence is that EVs are primarily moving.”
Tesla has faced the daily challenge of becoming a huge automaker, growing at an unprecedented rate when the demand for the Henry Ford Model T exploded in the early 1900s.
Tesla is dealing with the disruption of its supply chain and extended supply chain. Tesala Kirkhorn, Tesla’s chief financial officer, warned last week that Tesla’s latest production goals would address those disruptions and grow two new assembly and battery factories in Austin and Berlin. Read more
“We have a long way to go,” says Kirkhorn.
Rivals do not sit idly by. Daimler AG (DAIGn.DE) Mercedes Benz brand, General Motors Company (GMN), Ford Motors Co. (FN), and beginners such as LCID.O and China’s Xpeng (9868.HK) are competing with Tesla. With new electric cars or trucks.
Investors and analysts are, for the time being, looking beyond the recent challenges. Morgan Stanley increased Tesla’s price target by 33% to $ 1,200.
The Hertz Agreement emphasizes Tesla Brand Power, as the rental car company seeks to recover its once-famous brand. Hertz Salvation is led by a team of investors, including Knighthead Capital Management, Certares Opportunities and Apollo Capital Management.
Interim Hertz CEO Mark Field said of Tesla’s order at the end of 2022: “We are confident that this will be a competitive advantage for us.
“We want to be a leader in mobility … having customers experience with electric vehicles is a top priority for us.”
Tesla’s cheapest model 3 sedan starts at $ 44,000, making the order worth $ 4.4 billion.
Fields refused to say how much Hartz was paying for the order. Tesla was not immediately available for comment.
Under the current order, Hertz said, more than 20% of the world’s ships will be infected with HIV. He noted that the number of EVs for sale in the fields is increasing and consumer demand is for electric vehicles.
Hertz also said it was loading thousands of chargers into the network. Tesla Model 3 rental customers will find 3,000 Tesla supercharging stations throughout the United States and Europe.
Tesla shares closed 12.7% at $ 1,024.86.
Reporting by Subrat Patnaik and Sanjana Shivdas in Bengalru and Washington by David Shepardson; Additional report by Eva Matthews, Anirudda Gosh and Kanaki Deka; Edited by Joseph White, Shonak Dasgupta, Lisa Schumacher and Richard Chang
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