Here's How Long Tesla Took To Reach $1 Trillion Valuation

Tesla, Inc. TSLA stock reached a key milestone in its history as a public company, catalyzed by the EV maker's strong fundamental performance. As the stock for the first time traded above the market cap of $1 trillion mark on Monday, here's a look at how long it took to scale this milestone.

Path to $1 Trillion Tesla offered its shares to the public for the first time in June 2010 by offloading 13.3 million shares at $17 apiece. The offering valued the company at roughly $1.7 billion. The company raised about $226 million from the IPO.

The company's market cap was under the $50 billion mark until May 2017, as it struggled with teething and production issues. After unsuccessful efforts with its first model – The Roadster – in 2009, Tesla made available its Model S sedan in 2012 and followed it up with the Model X SUV in 2015. Tesla's fortunes began to change following the introduction of the more affordable Model 3 sedan focused on the mass market in 2017.

A period of stagnation in terms of market cap followed, and it was not before the beginning of 2020, Tesla stock began taking off in a big way.

A $100 billion valuation was hit for the first time in Jan. 2020. Thereafter, it was a breathtaking sprint for the stock, as it scaled new milestones after milestones in double-quick time. That Tesla achieved the feat in a year, when the world was reeling under the COVID-19 pandemic is commendable.

The stock's valuation climbed to $500 million in late December 2020. Its valuation peaked under $850 billion amid its climb to the then-record high of $900.40 in late January 2021. As the stock rally lost momentum subsequently amid fears about China, demand uncertainty, and quality and safety issues with its vehicles, valuation also came back from the peak.

Tesla's shares began picking up momentum ever since it reported its third-quarter deliveries in early October. The momentum was sustained by releasing its quarterly results and Monday's announcement of EV vehicle orders from Hertz Global Holdings, Inc. HTZZ.

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Joining an Elite League: Tesla now joins an elite group of companies that are part of the $1 trillion club. Apple, Inc. AAPL and Microsoft Corp. MSFT lead the pack with a market valuation of over $2 trillion. Saudi oil giant Saudi Aramco's shares are teasing the $2 trillion mark.

Alphabet, Inc. GOOGL GOOG and Amazon, Inc. AMZN follow, with market caps at about $1.843 trillion and $1.68 trillion, respectively. Tesla now stands behind these companies.

Time to $1 Trillion: From Tesla's listing, it has taken the company about 11 years for the company to reach a $1 trillion valuation.

In comparison, Apple and Microsoft took 38 years and 33 years, respectively, to achieve the feat. Amazon briefly touched the $1 trillion market cap in 21 years.

Social media giant Facebook, Inc. FB's shares touched a $1 trillion market cap in about 9 years from their listing. However, the stock has pulled since it hit the mark in June 2021 and is now valued at $926.722 billion.

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