A historic day! On October 25, local time, Tesla's stock price rose to a record high of $1,024.86, an increase of nearly 13%, the largest one-day increase since March 9 this year, based on Tesla issued about 1 billion shares outstanding as of October 21, the total market value of more than $1 trillion, in the trillion dollar market value club, The only other publicly traded U.S. companies are Apple, Microsoft and Alphabet Inc. And Amazon. Since it went public in June 2010, Tesla has surpassed $1 trillion in market value in just 11 years, the fastest rise after Facebook.

The surge in Tesla's stock price has coincided with a sharp rise in the personal wealth of Tesla co-founder Musk. The Tesla CEO is now the world's richest man, according to the Bloomberg Billionaires Index, with an estimated net worth of $281 billion, well ahead of Amazon founder Jeff Bezos. Musk is also Tesla's largest shareholder with a nearly 17 percent stake, according to Bloomberg data.

Tesla has been on a winning streak for the past five months, rising more than 75 percent since mid-May, nine out of the last 10 trading days and more than 28 percent this month, giving the biggest boost to the S&P 500 and Nasdaq. Tesla in particular has been buoyed this month by a flurry of positive news, including strong third-quarter earnings and deliveries, 100,000 purchase orders from rental car giant Hertz, and a report that the Model 3 was the best-selling car in the European market last month.

CNBC's latest report notes that strong EU sales and upbeat analyst calls have further boosted Tesla's stock price. Morgan Stanley's Adam Jonas raised his price target on Tesla to $1,200 per share from $900 on Sunday. Separately, Jato Dynamics said on Monday that Tesla's Model 3 electric sedan became the first all-electric vehicle to outsell new cars in Europe in September.

The Tesla Model 3 beat out the likes of Renault SA's Clio and Volkswagen's Golf, according to auto data analyst Jato Dynamics. Jato noted that the Model 3's outperformance was driven in part by Tesla's intensive sales at the end of the quarter. In September, Tesla's Model 3 deliveries in Europe rose 58 per cent year-on-year to 24,591 vehicles, according to Jato. It is the first time an electric vehicle model has surpassed a fuel car to become the top selling vehicle in Europe, and the first time a car produced outside Europe has taken the top spot.

As Bloomberg previously reported, the deal with Hertz would generate $4.2 billion in revenue for Tesla, making it the largest electric vehicle deal ever. Tesla could not be reached for comment. Bloomberg also reported that the car is scheduled for delivery over the next 14 months and will be available to customers in the United States and parts of Europe as early as November.

As for the reasons for the massive order of Tesla, Hertz said that on the one hand, it hopes to attract environmentalists and users who want to try electric cars, and on the other hand, electric cars will better hold their value in the second-hand market. Hertz filed for bankruptcy protection more than a year ago amid the pandemic, as demand for travel and rental vehicles dropped. This year, investors from Knighthead Capital Management and Certares Management said they would buy the company.

In addition, Tesla has also taken a historic step in the Chinese market: on October 25, Tesla submitted documents to the SEC showing that in the third quarter of this year, the revenue in the Chinese market reached 3.113 billion US dollars, a year-on-year increase of 78.5%; In the first three quarters of this year, the company achieved revenue of 9.15 billion US dollars in China, accounting for about 25% of global revenue, and becoming the second largest market for Tesla after the United States.

On the same day, Tesla China announced that the Shanghai R&D Innovation Center and the Tesla Shanghai Gigafactory data center have been built and will be put into use in the near future. The R&D innovation center is the company's first overseas R&D center based on vehicle development; The new data center will store China operations data such as factory production. The company said that with the blessing of the "dual center", the localization process of Tesla China will be further further.

For Tesla's crazy surge, some people began to question the rationality of Tesla's ultra-high market value, after all, compared with the market value, its production capacity is still limited, especially the chip shortage faced by the world. Bloomberg points out that not only is Tesla now the world's largest automaker by market capitalization, but all other top car companies combined are worth less than Tesla. But in terms of production, Tesla produces only a fraction of the number of cars that companies such as General Motors do. And bullish investors and analysts say other car companies can't match Tesla. They believe Tesla is more of a tech company, so its valuation is reasonable.