Tesla shares have been on a meteoric rise this year, spurred on by impressive first-quarter sales, price cuts, and charging hardware partnerships. The company now stands on the brink of a significant milestone, joining the ranks of a select few companies with a market capitalization of $1 trillion.
Tesla’s first-quarter sales were driven in large part by the success of its Model Y SUV, which outsold many of the top-selling vehicles in the U.S. Federal and state tax incentives, including a $7,500 tax credit, have helped to keep demand for the Model Y steady.
The company has also made waves with recent announcements of partnerships with automakers such as Ford and General Motors. These partnerships give other automakers access to Tesla’s Supercharger network, and could add as much as $3 billion per year in revenue. Reports say that Hyundai is also considering a shift to the NACS plug, so it’s not out of the realm of possibility.
At the time of writing, Tesla is trading at around $277.61 with a market capitalization of $825.78 billion. If shares continue to rise at their current rate, the company could reach a valuation of $1 trillion in the near future. Shareholders are eagerly awaiting Tesla’s Q2 earnings report, which is expected to occur in mid-July.
Tesla’s rise to the top echelon of public companies has been remarkable, and it’s clear that the company is positioned to remain a major player in the auto industry for years to come. Whether Tesla reaches a $1 trillion market cap or not, the company’s success is undeniable, and its place in the world of automotive innovation is secure.