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Highlights
- EV giant Tesla’s valuation crossed the US$ 1 trillion mark on Monday after Hertz placed a 100,000-unit order
- Hertz has not yet disclosed the deal size, but the order is expected to be worth around US$ 4 billion.
Electric vehicle (EV) giant Tesla (NASDAQ:TSLA) (LON: 0R0X) crossed the US$ 1 trillion valuation mark for the first time on Monday, after car rental company Hertz Global placed a 100,000 unit order with the EV maker.
Tesla thus joins US-based tech giants Facebook, Apple, Microsoft, Amazon and Alphabet, who have surpassed the trillion-dollar valuation mark.
Hertz Global, the parent company of UK based Hertz Corporation, said the EVs would be delivered by the end of next year, which is part of its goal to have the biggest EV rental car fleet in North America. While Hertz has not yet disclosed the deal size, the order is expected to be worth around US$ 4 billion.
It is noteworthy that Hertz had filed for bankruptcy protection in 2020 in the US due to being severely impacted by the pandemic.
The news led Tesla’s shares to jump by 12.66 per cent to USD 1,024.86 at closing on Monday on the NASDAQ.
Tesla’s shares have risen since 2020 due to rising electric vehicles sales ahead of governments banning fossil fuel-powered vehicles.
The group recently posted record sales of its Model 3 variant during September, selling 24,600 units, which took about 2.6 per cent of the auto sectors market share in the EU, according to car data firm Jato Dynamics.
The UK plans to ban the sale of petrol and diesel-fuelled cars from 2030 and hybrid vehicles from 2035. Let us take a look at 2 FTSE listed EV focused stocks and how they have performed:
- Aston Martin Lagonda Global Holdings PLC (LON: AML)
FTSE 250 index constituent Aston Martin is a British luxury automaker. The company plans to come out with a pure EV model by 2026.
The carmaker also recently shared its electrification strategy, where Aston Martin aims that at least 50 per cent of its car sales will be an electric car by the end of 2030. It will also include the DB6 model, which was made popular by the James Bond movie franchise.
(Image source: EODHD/Others)
Image description: AML’s share price and volume
Aston Martin’s shares ended at GBX 1,745.50, up by 1.04 per cent on 25 October, while the FTSE 250 index closed at 22,941.78, up by 0.04 per cent.
The group’s market cap stood at £2,028.44 million, and its one-year return was at 74.55 per cent as of Monday.
- Scottish Mortgage Investment Trust PLC (LON: SMT)
Scottish Mortgage Investment Trust is an FTSE 100 index listed investment trust. It is managed by investment management company Baillie Gifford & Co.
The trust was among one of the early backers of Tesla, which is also among its top 5 holdings at 4.7 per cent, as of 30 September.
Some of its other major investment holdings include vaccine maker Moderna with a 9.2 per cent holding, biotech firm Illumina with a holding of 5.8 per cent, semiconductor firm ASML with a 5.5 per cent holding and Tencent with a 4.1per cent holding.
SMT’s net asset value (NAV) performance over 3 years has been 166.7 per cent, against a benchmark of 39.7 per cent, as of 30 September.
(Image source: EODHD/Others)
Image description: SMT’s share price and volume
Scottish Mortgage Investment Trust’s shares ended at GBX 1,460.00, up by 1.49 per cent on 25 October, while the FTSE 100 index closed at 7,222.82, up by 0.25 per cent.
The group’s market cap stood at £20,661.54 million, and its one-year return was at 41.61 per cent as of Monday.
