The electric vehicles manufacturer Tesla has surpassed a market valuation of $1 trillion.
Share prices for the car company, which is spearheaded by Elon Musk, rose by 12.6% following the finalization of a deal with Hertz worth $4.2 billion.
Tesla joins Apple, Microsoft, Amazon, and Alphabet in an elite group of companies whose market value surpasses $1 trillion.
As part of the deal, Tesla will sell 100,000 Model 3s, their mid-size electric vehicles range, to the American car rental firm by the end of 2022. The deal ensures that Hertz will operate the largest electric vehicles fleet in North America, with electric vehicles accounting for 20% of their global vehicle network.
In tandem, Hertz will invest in electric vehicle charging infrastructure across the U.S. and the company’s global market.
The investment made by Hertz reflects an accelerating consumer interest in electric vehicles, which they claim is powered by high efficiency, positive user experiences, and environmental benefits.
“Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest,” said Mark Fields, interim Chief Executive Officer at Hertz.
“The new Hertz is going to lead the way as a mobility company, starting with the largest EV rental fleet in North America, a commitment to grow our EV fleet, and to provide the best rental and recharging experience for leisure and business customers around the world.”
