The electric car manufacturer is currently the fifth largest listed company in the United States by market capitalization.

Musk's net worth is about $281 billion, far exceeding that of Amazon.Com Inc.Founder Jeff Bezos

TeslaTesla, Inc. 's share price surged past a key milestone as it joined the trillion-dollar market capitalization club on Monday as the global auto industry transformed into electric cars.

Since its listing in June 2010, it has taken only 11 years for Tesla, Inc. to break through the market capitalization of 1 trillion US dollars, which is second only to Facebook Inc.The market capitalization of the latter has fallen below $1 trillion as a result of the sell-off over the past two months. Among the trillion-dollar market capitalization club, only Apple Inc is the other American listed company.、 Microsoft Corp, Alphabet Inc. And Amazon.Com Inc.

Tesla, Inc. rose as much as 9.8% on Monday, the biggest intraday volatility since March 9. At one point, the company's share price hit a record high of $998.74, with a market capitalization of more than $1,000bn based on the number of about 1 billion shares outstanding by Tesla, Inc. as of Oct. 21.

At a time when the automobile industry is on the cusp of a large-scale transformation, electric vehicles are expected to replace gasoline vehicles around the world. Tesla, Inc. and his co-founder Musk are seen as one of the main driving forces behind the trend.

As Tesla, Inc. 's share price rose, so did Musk's personal wealth. According to the billionaire index, the chief executive of Tesla, Inc. is now the richest man in the world, with a net worth of about $281 billion, far surpassing Amazon.Com Inc founder Jeff Bezos. Musk is also Tesla, Inc. 's largest shareholder, with nearly 17 per cent of the shares, according to the data.

Tesla, Inc. has been on a rally over the past five months, up more than 75% since mid-may, and the stock was particularly boosted this month by a string of good news, including strong third-quarter earnings and delivery, 100000 orders from car rental giant Hertz, and a report that the Model 3 was the best-selling car in Europe last month.

After the news of the Hertz superorder, Musk's personal wealth jumped by nearly $29 billion, one of the largest one-day increases on the list of billionaires, second only to NONGFU SPRING CO., LTD. 's Zhong Mengli, whose value soared by 32 billion US dollars last year on the day NONGFU SPRING CO., LTD. went public.

"Tesla, Inc. is a leader in electric car manufacturing, batteries and self-driving," Morgan Stanley said.Analyst Adam Jonas wrote in a report on Monday. "the company also has a range of supporting technologies and other businesses, which will keep Tesla, Inc. in a leading position in the automotive and energy sectors in the long run."

Is the valuation too high?

However, some people say that the dazzling growth figures are not enough to fully justify Tesla, Inc. 's ultra-high market capitalization. It is now not only the largest carmaker by market capitalization in the world, but also inferior to Tesla, Inc. in terms of market capitalization of all other top car companies. But in terms of output, Tesla, Inc. 's automobile production is only General Motors Co.Wait for a fraction of the company.

"We admit that Tesla, Inc. 's performance is impeccable, but this does not change our view that Tesla, Inc. 's share price is seriously overvalued," Roth Capital Partners analyst Craig Irwin wrote in a report on October 21.

Competition in the electric car market is indeed intensifying. After years of wait-and-see, almost all major traditional car companies have announced ambitious plans for new energy vehicles this year, including the development of essential ecosystems for electric vehicles such as batteries and a network of charging stations.

Bullish investors and analysts say other car companies cannot be compared with Tesla, Inc.. They think Tesla, Inc. is more like a technology company, so his valuation is reasonable.

Tesla, Inc. shares currently correspond to a forward 2021 price-to-earnings ratio of 172 times, and the NYSE+ FANG index is 34 times. Its constituent stocks include Alphabet and Alphabet Inc-CL C., Facebook Inc, Amazon.Com Inc, Baba、 Baidu, Inc.等。