Tesla Market : Tesla became the latest US tech giant to reach $1 trillion (about Rs 75,05,550 crore) in market value. As investors lauded a large Hertz order and shrugged off criticism from a US auto safety official.
Elon Musk’s company ended first at $1,024.86 (approximately Rs 77,030). It is up 12.7 per cent and at $1 trillion (approximately Rs 75,05,550 crore).
“Wild $T1mes!” Musk said on Twitter.
The surge came after the rental car giant announced an order to buy 100,000 autos from Tesla by the end of 2022. It is the latest embrace of electric car technology by a mainstream auto player.
Hertz’s announcement came on the heels of Tesla’s strong earnings call last week. It illustrates the company’s resilience despite its lack of semiconductors. This weighed heavily on other automakers.
Leading analysts at Morgan Stanley raised their target on Tesla to $1,200 (about Rs 90,180) from $894 (approximately Rs 67,190). Pointing to the company’s “extraordinary” revenue in the last quarter despite supply chain problems.
The Morgan Stanley note predicts that Tesla would “demonstrate the capabilities of a trillion dollar Tesla” over the next 12 to 18 months. As it ramps up production and expands its capacity, model offerings and service offerings.
Tesla Market : Safety Board Criticism
Monday’s rally overlook a letter from the National Transportation Safety Board. Rebuking Musk for not implementing key recommendations to protect the automaker’s driver assistance programs.
In a September 2017 report on a fatal incident in Florida a year earlier. The NTSB concludes that Tesla’s driver assistance system was prone to be employed on roads for which it was not designed. Tesla’s program also fails to detect signs that the driver was removed.
The agency urged Tesla to include safety measures. It is to limit the system to the areas it was intended for. To alert a driver when it became disengaged.
The other five automakers that received the NTSB’s recommendations responds. They outline the steps took by them.
“Tesla is the only manufacturer not to officially respond to us regarding recommendations,” wrote NTSB President Jennifer Homendy.
Homendy described a second fatal accident in California in 2018. It occur in a roadway that did not have a driver assistance system. It is with an operator who was displaced.
“Our accident investigations involving your company’s vehicles have clearly shown the potential for abuse. That system design changes need to ensure safety,” Homendy said.
Investors overestimated Hertz’s announcement.
According to a press release, the car rental giant, which emerged from a bankruptcy reorganization earlier this year. They said that electric vehicles (EVs) will be available in early November “in key markets across Europe and select cities in Europe”.
“Electric vehicles are now mainstream. We are beginning to see increasing global demand and interest,” said Interim Hertz Chief Executive Mark Fields.
Briefing.com said on its website that the deal with Hertz is “a huge win” for Tesla.
“Beyond the windfall from the order itself, the availability of 100,000 new Model 3s at hertz is a lot like a direct marketing campaign for Tesla,” the briefing said.
“After introduce to Tesla for the first time, some of those Hertz customers may eventually turn into Tesla customers. Additionally, the deal represents another milestone in the widespread adoption of EVs. While a whole lot for Tesla.” In a way, a new market is also opening up.”