Tesla, a U.S. electric vehicle company led by Elon Musk, has joined the $1 trillion club, a symbol of the world’s leading big tech company.
Tesla closed at $124.86 on the New York Stock Exchange on the 25th (local time), up 12.66 percent from the previous day.
As stock prices flew high, the market capitalization soared to $1.146 trillion.
Tesla set a new high price last week, rising to $910 during the day, thanks to its strong third-quarter earnings, and broke the record again that day. The highest price during the day was $145.02.
“Tesla has become the first automobile company to join the $1 trillion elite club in market value,” Reuters reported.
Currently, more than $1.5 trillion companies are Apple ($2.5 trillion), Microsoft ($2.3 trillion), Amazon ($1.5 trillion), and Google’s parent company Alphabet ($1.5 trillion), and Tesla is the first automobile company to enter the $1.5 trillion club.
The market capitalization of $1 trillion is a milestone achieved 11 years after Tesla was listed on the NASDAQ in June 2010.
Compared to Microsoft’s 33 years of reaching $1 trillion after listing, this is an ultra-short-term achievement.
Tesla reached the $1 trillion mark at the second fastest pace after Facebook.
Facebook, which currently has a market capitalization of $930 billion, is below $1 trillion, but it joined the $1 trillion club on June 28 after nine years of listing.
The Wall Street Journal (WSJ) said it took more than eight years for Amazon’s market value to range from $100 billion to $1 trillion, but the company took less than two years.
Foreign media reported that Musk was surprised at Tesla’s achievement of $1 trillion in market capitalization and posted a tweet congratulating it on Twitter.
According to the New York Times (NYT) and WSJ, Tesla’s market capitalization is more than the combined market value of nine global automakers, including Toyota, General Motors (GM), Ford, Volkswagen, BMW and Honda.
Bloomberg also reported that Tesla’s credit rating, which considers debt, is at the level of speculative ratings, and that Tesla is the first junk-grade company with a market capitalization of $1 trillion.