Tesla’s market value exceeds $1 trillion for the first time, and Musk is firmly established as the world’s richest man

Tesla Monday (October 25) US stocks closed up 12.66%, to close at $1024.8600, and the company’s market value exceeded $1 trillion for the first time, reaching $10267 billion. After Apple, Amazon, Microsoft, Google and Facebook, Tesla became the seventh stock in the history of the U.S. stock market with a market value of more than $1 trillion, and it also became the first auto company with a market value of over $1 trillion.

With the latest rise in the company’s share price, the personal wealth of its founder, Elon Musk, has also soared. It is reported that about two-thirds of Musk’s net assets are directly linked to Tesla’s stocks and options, and his personal wealth soars by $36 billion a day. At present, Musk’s net worth has reached 288.6 billion US dollars, or about 1.84 trillion yuan. Musk’s net worth surpassed Amazon founder Jeff Bezos’s $193 billion, making him the world’s richest man.

On the news, Tesla ushered in the largest electric car order in history. Hertz Global, an international car rental company that has just gone out of bankruptcy protection for only four months, announced the purchase of 100,000 Tesla vehicles as the first step in the electrification of its fleet. According to Bloomberg, this large order with a total price of approximately US$4.2 billion has also become the largest transaction in the history of electric vehicles and has locked in about 10% of Tesla’s annual production capacity.

Hertz stated in the announcement that the order will be completed before the end of 2022, and that Hertz rental cars will also begin to provide Model 3 rentals in major US markets and some European markets from November. In addition to consumers can use Tesla’s overcharging network, Hertz Rent-a-Car is also building its own charging network.

In addition, Tesla’s brilliant earnings report may have also helped the stock price rise. Specifically, in the third quarter, Tesla achieved total revenue of 13.757 billion US dollars, equivalent to approximately 87.557 billion yuan, an increase of 57% year-on-year; net profit of 1.618 billion US dollars, equivalent to approximately 10.345 billion yuan. It is reported that Tesla has achieved profitability for 9 consecutive quarters.

It is worth mentioning that US$12.9 billion is the revenue from the electric vehicle business. Among them, the Chinese market revenue reached US$3.113 billion, an increase of 78.5% year-on-year. In the first three quarters, Tesla’s revenue in China was US$9.015 billion, accounting for approximately Tesla’s global revenue ratio reaches 25%. This figure has also exceeded Tesla’s annual revenue of US$6.662 billion in the Chinese market last year. According to the Qicha app, Tesla currently has 45 member companies in China.

The importance of the domestic market to Tesla is self-evident. Tesla announced on Weibo on Monday that the Shanghai R&D and Innovation Center and the Tesla Shanghai Super Factory Data Center have been completed and will be put into use in the near future. It is understood that the Shanghai R&D Innovation Center is Tesla’s first overseas R&D center based on vehicle development, including software, hardware, electronics, materials, power and energy engineering teams.