Electric vehicle maker Tesla joined the $1 trillion market capitalisation club on Monday as the company’s stock surged to a record high of more than $1,000 a share nearly 11 years after the company went public.
As of Monday, the only US-based companies with a market cap of more than $1tn were Amazon ($1.7tn), Apple ($2.5tn), Microsoft ($2.3tn) and Alphabet ($1.8tn).
Tesla’s shares soared after the company received its biggest-ever order from the car rental company Hertz. They were also driven by the news of the company's saloon car Model 3 becoming the first EV to top the monthly sales of new cars in Europe.
The Nasdaq-listed company's stocks were trading at more than $1,020 at 3.30pm New York time, up more than 11 per cent, valuing the company at $1.01tn.
The Model 3 has become the first EV to outperform its combustion engine counterparts, such as Renault Clio and Volkswagen Golf in the European market, data compiled by research firm Jato Dynamics show.
Florida-based Hertz, which came out of bankruptcy about four months ago, announced plans to buy 100,000 electric rental cars from Tesla by the end of next year.
Industry analysts predicted near-term Tesla shares are unpredictable.
“Our long-term perspective is based on Tesla targeting large markets including EVs, energy, autonomy and insurance,” Loup Ventures managing partner Gene Munster and analyst David Stokman wrote in a note to clients.
“These businesses should deliver sustainable revenue growth and our thinking is sales can increase from $70 billion next year to $400bn in 2027,” they said.
Loup Ventures company expects Tesla stocks to cross $2,500 share price by 2027.
“We caution, a lot of things need to go right [including keeping competition at bay] to get there, but that potential is on the table,” Mr Munster and Mr Stokman said.
Wedbush Securities analyst Daniel Ives predicted the world’s second-biggest economy, China, will represent more than 40 per cent of Tesla’s global deliveries next year. In China, Tesla competes with local brands such as Nio and Xpeng.
Tesla did not respond immediately to The National’s request for comment on the bulk order from Hertz. The deal is is reportedly worth $4.2bn.
Tesla Chairman and CEO Elon Musk unveils the new "Semi" electric truck in Hawthorne, California, near Los Angeles. Veronique Dupont / AFP Photo
Musk did not give a price for the lorry, or say how or where either product would be built, but he said production will begin in 2019. Alexandria Sage / Reuters
Musk has described electric trucks as Tesla’s next effort to move the economy away from fossil fuels through projects including electric cars, solar roofs and power storage. Alexandria Sage / Reuters
Some analysts fear the lorry will be an expensive distraction for Tesla, which is burning cash, has never posted an annual profit. Veronique Dupont / AFP Photo
Tesla's new electric lorries. Alexandria Sage / Reuters
Tesla's new electric lorry. Alexandria Sage / Reuters
Tesla's new electric lorry. Alexandria Sage / Reuters
Customers will be able to rent a Model 3 at Hertz airport and neighbourhood locations in major US markets and select cities in Europe from next month, Hertz said in a statement.
It is also installing thousands of chargers throughout its location network. Customers who rent a Tesla Model 3 will have access to 3,000 Tesla supercharging stations across the US and Europe, the company said.
"Electric vehicles are now mainstream, and we have only just begun to see rising global demand and interest," Hertz’s interim chief executive Mark Fields said.
"The new Hertz is going to lead the way as a mobility company, starting with the largest EV rental fleet in North America and a commitment to grow our EV fleet and provide the best rental and recharging experience for leisure and business customers around the world," he added.
With the current order, EVs will comprise more than 20 per cent of the Hertz global fleet. This is expected to be supported by a combination of Level 2 and DC fast charging in about 65 markets by the end of next year and more than 100 markets by the end of 2023.
However, the company said these targets could be affected by factors such as semiconductor chip shortages that have upended the automotive industry, including Tesla, globally.
Last week, Tesla said it is facing Covid-induced challenges related to supply chain, transport and production. However the world’s biggest manufacturer of EVs said it is running its production lines “as close to full capacity as conditions [allowed]”.
It delivered a record 241,300 vehicles in the third quarter of this year, topping analysts’ expectations of 220,900 vehicles.
The company, which joined the S&P 500 index in December, reported a 389 per cent jump in its third-quarter net profit to $1.6bn.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
The Al Ghaf tree is a local desert tree which bears the harsh summers with drought and high temperatures. From the rich flowers, bees that pollinate this tree can produce delicious red colour honey in June and July each year
Sidr Honey
The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest
Samar Honey
The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments
Classification of skills
A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.
A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.
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A meeting of young minds
The 3,494 entries for the 2019 Sharjah Children Biennial come from:
435 – UAE
2,000 – China
808 – United Kingdom
165 – Argentina
38 – Lebanon
16 – Saudi Arabia
16 – Bangladesh
6 – Ireland
3 – Egypt
3 – France
2 – Sudan
1 – Kuwait
1 – Australia
Conflict, drought, famine
Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024. It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine. Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages]. The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.
Band Aid
Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts. With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians. Following the single’s success, the idea to stage a rock concert evolved. Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world. The combined event was broadcast to an estimated worldwide audience of 1.5 billion.
Infiniti QX80 specs
Engine: twin-turbocharged 3.5-liter V6
Power: 450hp
Torque: 700Nm
Price: From Dh450,000, Autograph model from Dh510,000
