Tesla Tops $1 Trillion in Market Value as Hertz Deal Fuels Latest Surge

Elon Musk showed his excitement on Twitter as he posted, “Wild $T1mes!”

Tesla Tops $1 Trillion in Market Value as Hertz Deal Fuels Latest Surge

The surge followed announcement from rental car giant Hertz of an order to buy 100,000 autos from Tesla

Highlights
  • The Hertz announcement came on the heels of strong Tesla earnings
  • Investors gave more weight to the announcement from Hertz
  • The deal with Hertz is "a huge win" for Tesla

Tesla became the latest US tech giant to hit $1 trillion (roughly Rs. 75,05,550 crore) in market value as investors cheered a large order from Hertz and shrugged off criticism from a US auto safety official.

Shares of Elon Musk's company finished at $1,024.86 (roughly Rs. 77,030), up 12.7 percent and topping $1 trillion (roughly Rs. 75,05,550 crore) for the first time.

"Wild $T1mes!" Musk said on Twitter.

The surge followed an announcement from rental car giant Hertz of an order to buy 100,000 autos from Tesla by the end of 2022 in the latest embrace of electric car technology by a mainstream auto player.

The Hertz announcement came on the heels of strong Tesla earnings last week that illustrated the company's resilience in spite of a semiconductor shortage that has weighed more heavily on other automakers.

Leading analysts at Morgan Stanley upped their target on Tesla to $1,200 (roughly Rs. 90,180) from $894 (roughly Rs. 67,190), pointing to the company's "extraordinary" revenue in the last quarter despite supply chain problems.

The Morgan Stanley note predicted Tesla over the next 12 to 18 months will "demonstrate the capabilities of the Trillion dollar Tesla," as it ramps up production and expands its capacity, model offerings and service offerings.

Safety board criticism

Monday's rally overlooked a letter from the National Transportation Safety Board castigating Musk for not implementing key recommendations to safeguard the automaker's driver assistance programs.

In a September 2017 report on a fatal incident a year earlier in Florida, the NTSB concluded that Tesla's driver assistance system was prone to being employed on roads for which it was not designed. Tesla's programme also failed to detect signs the driver was disengaged.

The agency urged Tesla to incorporate safeguards to limit the system to areas for which it was intended and to alert the driver when he or she became disengaged.

The other five automakers that received the NTSB's recommendations responded and outlined the steps they were taking.

"Tesla is the only manufacturer that did not officially respond to us about the recommendations," wrote NTSB Chair Jennifer Homendy.

Homendy described a second fatal crash in California in 2018 that also took place in a roadway not meant for the driver assistance system and with an operator who was disengaged.

"Our crash investigations involving your company's vehicles have clearly shown the potential for misuse requires a system design change to ensure safety," Homendy said.

But investors gave more weight to the announcement from Hertz.

The car rental giant, which emerged from a bankruptcy reorganisation earlier this year, said the electric vehicles (EV) would be available "in US major markets and select cities in Europe" beginning in early November, according to a press release.

"Electric vehicles are now mainstream, and we've only just begun to see rising global demand and interest," said interim Hertz Chief Executive Mark Fields.

The deal with Hertz is "a huge win" for Tesla, Briefing.com said on its website.

"Beyond the windfall from the order itself, the availability of 100,000 new Model 3s on Hertz' lots is like a direct marketing campaign for Tesla," Briefing said.

"After being introduced to Tesla for the first time, some of those Hertz customers may ultimately turn into Tesla customers. Additionally, the deal represents another milestone in the broader adoption of EVs, while also opening up an entirely new market for Tesla."


What's most interesting about Apple's new MacBook Pros, M1 Pro and M1 Max silicon, AirPods (3rd Generation), and Apple Music Voice plan? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Comments

For the latest tech news and reviews, follow Gadgets 360 on Twitter, Facebook, and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel.

Further reading: Elon Musk, Tesla, Model 3, Hertz
Bitcoin, Ether Open With Gains as Green Colour Dominates Crypto Charts; Dogecoin, Tether Record Dips
Moto G200 Specifications Leaked; May Come With Snapdragon 888, 108-Megapixel Rear Camera

Related Stories

Share on Facebook Tweet Snapchat Share Reddit Comment
 
 

Advertisement

Advertisement

Advertisement

© Copyright Red Pixels Ventures Limited 2021. All rights reserved.
Listen to the latest songs, only on JioSaavn.com