Tesla boss (TSLA) Elon Musk has reinforced his position as the richest man in the world as Tesla’s market value has broken through the $1tn (£725.7bn) mark for the first time after receiving an order for 100,000 of its vehicles from the car rental company Hertz (AZC0.F).
Tesla joins tech companies Apple (AAPL), Amazon (AMZN), Google owner Alphabet (GOOG), Facebook (FB) and Microsoft (MSFT) among the US firms who have passed the trillion-dollar mark. Apple became the first company to achieve the landmark in 2018.
Tesla’s Model 3 was the UK’s best selling car in September, with 6,879 units registered in the month, according to data from the Society of Motor Manufacturers and Traders.
The company saw a record quarter as the Model 3 was also the bestselling car across Europe in September — the first time a battery electric vehicle had topped the monthly sales charts in the region.
The company is set to benefit from accelerating sales of electric vehicles (EVs) in the run-up to government bans on petrol and diesel cars to meet climate targets.
The UK will ban all new petrol and diesel cars from 2030. The sale of hybrid vehicles will be allowed until 2035.
Hertz’s order for 100,000 vehicles is the first step of an ambitious plan to electrify its rental-car fleet. The cars will be delivered over the next 14 months, and Tesla’s Model 3 sedans will be available to rent at Hertz locations across the US and parts of Europe starting in early November, the rental company said in a statement.
It is the single-largest purchase ever for EVs and is thought to represent around $4.2bn of revenue for Tesla.
Tesla shares were up by over 12.6% at the end of the US close on Monday.
The rocketing of Tesla’s share price added further to the fortune of CEO Elon Musk — he is currently worth $255.2bn, according to the Forbes real-time billionaires list.
SpaceX, Musk’s rocket company, is valued at $74bn after its latest funding round in February 2021, according to Forbes.
Musk’s wealth is $60bn higher than the world’s second richest person, Amazon founder Jeff Bezos who is worth $193.3bn. Amazon thrived during the pandemic with revenues in 2020 growing 38% to $386bn as people stayed home and made online purchases.
Musk passed Bezos to become the richest person in the world in January 2021.
Chairman and CEO of luxury goods group LVMH Moët Hennessy Louis Vuitton (MC.PA) Bernard Arnault comes in at number three on the list of the world’s wealthiest people — worth $186.8bn.
Earlier this month, the world’s biggest luxury firm revealed a rise in demand in its third quarter with sales at its fashion and leather goods division jumping 38% to €7.4bn (£6.3bn, $8.6bn) on an organic basis compared to the same period in 2019.
Fourth on the list is Microsoft co-founder Bill Gates, worth $135.2bn.