Hertz deal drives Tesla to $1trillion valuation

TESLA became the first $1trillion carmaker as shares surged after it signed its largest-ever order with rental car firm Hertz.

The electric car group, headed by the world’s richest man Elon Musk, saw its share price climb 13pc to an all-time high on Wall Street.

The jump means Tesla’s market value hit $1.1trillion – joining an exclusive club of only a handful of companies including Apple, Amazon and Microsoft.

The bounce followed news that Hertz had ordered 100,000 Tesla vehicles for its fleet of hire cars which are due to be delivered before the end of next year.

Most of the vehicles will be from Tesla’s Model 3 sedan range, according to Reuters, which at a starting cost of around £41,000 give the deal a price tag of £4.1bn.

Customers will be able to rent the cars from November, Hertz said, and will have access to 3,000 Tesla supercharging stations across the US and Europe.

The massive order also means electric vehicles (EVs) will make up over 20pc of Hertz’s global fleet of around 440,000 cars.

‘Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest,’ said Hertz interim chief executive Mark Fields.

He added: ‘The new Hertz is going to lead the way as a mobility company, starting with the largest EV rental fleet in North America and a commitment to grow our EV fleet and provide the best rental and recharging experience for leisure and business customers around the world.’

The massive deal follows thirdquarter earnings for Californiabased Tesla of £2.3bn.

The firm’s run has also massively inflated Musk’s personal fortune through his 17.2pc stake in the group, which at current share price levels is worth £143bn.