---
title: "How a $4.2 Billion Deal Generated $119 Billion in Market Value"
description: "It’s not every day that a simple $4.2 billion order creates a $119 billion jump in value for the buyer and seller combined -- some 28 times the size of the sale itself."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "International Finance"
author: "Bloomberg"
author_url: "https://www.dailymaverick.co.za/author/bloomberg/"
canonical_url: "https://www.dailymaverick.co.za/article/2021-10-26-how-a-4-2-billion-deal-generated-119-billion-in-market-value/"
published: "2021-10-26T05:32:13"
lang: "en-ZA"
word_count: 239
---

# How a $4.2 Billion Deal Generated $119 Billion in Market Value

> It’s not every day that a simple $4.2 billion order creates a $119 billion jump in value for the buyer and seller combined -- some 28 times the size of the sale itself.

By Bloomberg · Published 26 October 2021, 07:32 SAST

## Content

But that’s what happened Monday, when Hertz Global Holdings Inc.’s order for 100,000 Tesla Inc. vehicles had an outsized impact on both companies’ shares -- as well as one particular shareholder.

[Read More: Tesla Touches Trillion Dollar Mark as EVs Go Mainstream](https://www.bloomberg.com/news/articles/2021-10-25/tesla-races-toward-trillion-dollar-value-as-evs-go-mainstream)

In one of the largest-ever purchases of electric vehicles, Hertz will spend $4.2 billion on the cars, about $42,000 per car, Bloomberg News reported. The announcement pushed Tesla shares up more than 12% and added almost $118 billion to the company’s market capitalization. Tesla is now the fifth-most valuable publicly traded company in the U.S.

That a deal with a recently-bankrupt rental car company is what pushed Tesla over $1 trillion in value surprised even Tesla Chief Executive Officer Elon Musk who tweeted that the company has plenty of demand for vehicles.

> Strange that moved valuation, as Tesla is very much a production ramp problem, not a demand problem
>
> — Elon Musk (@elonmusk) [October 25, 2021](https://twitter.com/elonmusk/status/1452727731452588041?ref_src=twsrc%5Etfw)

Even stranger, Hertz, the buyer in this deal, gained $1.17 billion in value on the announcement. It’s an unusual turn of circumstances for a company that spent most of the summer valued at less than $8 billion.

Musk may not want to look this gift in the mouth. Tesla’s stock surge solidified his position as the richest man on Earth, boosting his net worth by $36.2 billion today alone. He’s now valued at $288.6 billion, according to the Bloomberg Billionaires Index.