Tesla Worth $ 1 Billion As Investors Cheer For Deal With Hertz That Ordered 100,000 Electric Vehicles

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Tesla’s market cap topped $ 1 billion on Monday after its shares surged following a deal with car rental company Hertz that ordered 100,000 new electric vehicles from the maker.

This is the largest order ever for the company founded by Elon Musk.

After the deal was announced, Tesla shares jumped more than 9.5% to $ 995.75, bringing the company’s value to $ 1 billion (around £ 726 billion) , according to Reuters.

The deal will see Hertz complete its purchases of Tesla Model 3 cars by the end of 2022, while customers can start leasing Tesla’s electric vehicles through Hertz from next month.

The deal is expected to be worth around $ 4 billion (£ 2.9 billion) as each Model 3 has a base price of around $ 40,000 (£ 29,000).

It also tops the list for single company electric vehicle orders.

By becoming a billion dollar company, Tesla joins an elite group of famous companies that have already surpassed the milestone.

The only other publicly traded companies in the United States that have reached a market cap of $ 1 billion so far are Apple, Amazon, Microsoft and Alphabet, the parent company of Google.

Hertz customers will be able to access Tesla’s network of superchargers in the US and Europe – and the rental company has also pledged to install 3,000 chargers by the end of next year.

“We absolutely believe this is going to be a competitive advantage for us,” said Mark Fields, Hertz interim general manager, of the Tesla order.

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Mr. Musk’s company is currently struggling to meet a backlog of orders

Speaking to Reuters, Fields added: “We want to be a leader in mobility… Bringing the customer experience to electrified vehicles is a top priority for us. “

Hertz currently owns around 430,000 to 450,000 vehicles worldwide and has said it will work with other companies producing electric vehicles – not just Tesla. Following the latest order, Fields said electric vehicles will account for more than 20% of his global fleet.

Mr Musk’s company is currently struggling to meet a backlog of orders and suffers from supply chain issues, but experts say the deal strengthens the overall status of electric vehicles.

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