Tesla, (TSLA Quick QuoteTSLA - Free Report) , arguably the hottest company in the world, entered the exclusive $1 trillion market capitalization club last week, joining Apple (AAPL Quick QuoteAAPL - Free Report) , Microsoft (MSFT), Amazon (AMZN Quick QuoteAMZN - Free Report) and Google (GOOGL Quick QuoteGOOGL - Free Report) . Facebook, which has changed its name to Meta Platforms , was in the club earlier, but out now since its shares have taken a hit resulting from explosive revelations by a former employee.

The EV maker saw its shares soar after the car rental group Hertz announced it had ordered 100,000 Tesla Model 3 sedans to add to its fleet. Yesterday, shares came down slightly after Elon Musk said they haven’t signed the deal yet.

Under the agreement, Tesla cars will be available for rent in major cities and airports in the US. Musk, now the richest person in the world, has talked about his ambition to make Tesla accessible to more customers, including producing a $25,000 electric car in a few years. The car currently has a starting price of around $45,000, making it accessible only to the affluent.

The order is significant for the company since it delivered a total of 241,300 vehicles in the latest quarter. Per Musk however, “Tesla is very much a production ramp problem, not a demand problem.”

The stock, currently Zacks Rank#1 (Strong Buy), is trading at 198 times forward earnings, what many would call nosebleed valuation. However, it is a very innovative company. Musk, who believes in making life multi-planetary, has a huge fan following. The company has also seen a lot of interest from ESG focused investors. So, Tesla believers will continue to pour money into the stock.

To learn more about the Consumer Discretionary Select Sector SPDR Fund (XLY Quick QuoteXLY - Free Report) , the Simplify Volt RoboCar Disruption and Tech ETF (VCAR Quick QuoteVCAR - Free Report) and the ARK Autonomous Technology & Robotics ETF (ARKQ Quick QuoteARKQ - Free Report) please watch the short video above.