Hertz said the cars would be delivered by the end of 2022 as part of its plan to build the largest electric vehicle rental fleet in North America. However, the firm did not detail how it would fund the purchase, which will likely run to as much as $4bn even with a bulk discount.

Tesla shares rose by as much as 9% to as high as $998 on Monday after Hertz announced the order, taking it past the milestone, although they later fell back below that level. Tesla shares must trade above $995.75 to stay above the $1tn (£727bn) level, based on the number of shares disclosed in its latest filing.

Tesla joins the tech companies Apple, Amazon, Alphabet, Facebook and Microsoft among the US firms who have passed the trillion-dollar mark. Apple became the first company to reach the landmark in 2018.