Electric car maker, Tesla briefly hit a $1 trillion market cap on Monday following news that Hertz is ordering 100,000 vehicles to build out its electric vehicle rental fleet by the end of 2022.
The company joins trillion-dollar market cap companies like Apple, Amazon and Microsoft.
News of the deal brought Tesla’s stock to more than $998 midday, a new record-high one trading day after shares hit $900. The stock is currently up around 9%, CNBC reported.
The deal, which will bring in a reported $4.2 billion for Tesla, is the largest ever purchase of electric vehicles, CNBC quoted Bloomberg to have said in a report.
According to it, Bloomberg also reported the cars are slated for delivery within the next 14 months and will be available to customers in the U.S. and parts of Europe as early as November, according to the people.
The deal comes more than a year after Hertz filed for bankruptcy protection during the height of the pandemic, as demand for travel and rental vehicles waned. This year, investors from Knighthead Capital Management and Certares Management said they would take over the company.