After Hertz said Monday that it would acquire 100,000 electric vehicles, Tesla’s market cap briefly surpassed $1 trillion for the first time.
Tesla’s stock soared to a new all-time high on the news of the deal, just one trading day after hitting $900.
The agreement comes more than a year after Hertz filed for bankruptcy amid the peak of the epidemic, as demand for travel and rental cars fell.
Following news that Hertz is purchasing 100,000 vehicles to build up its electric vehicle rental fleet by the end of 2022, Tesla momentarily touched a $1 trillion market cap on Monday.
Apple, Amazon, and Microsoft are among the corporations with trillion-dollar market caps.
The news of the agreement pushed Tesla’s stock to a fresh all-time high of $998 by lunchtime, one trading day after it touched $900. The stock is currently up by about 9%.
According to Bloomberg, the acquisition, which is expected to earn Tesla $4.2 billion, is the largest ever purchase of electric vehicles.
According to Bloomberg, the cars will be delivered within the next 14 months and will be offered to customers in the United States and portions of Europe as early as November.
The agreement comes more than a year after Hertz filed for bankruptcy during the peak of the pandemic, as demand for travel and rental cars dwindled. Investors Knighthead Capital Management and Certares Management announced this year that they will take over the company.