Famed venture capitalist John Doerr on Thursday said he believes bullish TeslaAnalysts are likely right, and they predicted that the company would lead the world’s transition to all-electric transport.

“They are committed to being a global leader and I believe they will be in the transportation future,” Doerr said at the CNBC ESG Impact summit.

Doerr’s remarks come after Tesla hit a $1 trillion market cap on Monday following news that Hertz would purchase 100,000 electric vehicles for its rental fleet by the end of 2022. Hertz has agreed to buy Tesla 100,000 electric vehicles by 2022. This deal is estimated at $4.2 billion. in the biggest ever purchase of electric vehicles

Doerr stated that the “fundamentals” of driving Tesla are the market size and the quality of the product. Tesla isn’t green if it hasn’t been driven. It’s great because they love it.

The transportation sector is one of the largest contributors to U.S. greenhouse gas emissions, accounting for roughly one-third of emissions each year. A key solution for climate change will be the transition to electric trucks and cars.

Tesla is a powerful company, but it’s not just a multi-billion dollar business. It’s also shown the world that consumers are willing to pay more for electric cars. Doerr said.

Tesla is a company. sold a majority of the electric vehiclesAccording to IHS Markit, the U.S. has seen a decline in its market share in recent years. But, this market share could quickly decrease due to traditional automakers investing billions in new electric vehicles that can compete with Tesla.

Industry forecasters predict that electric vehicle sales will account for less than 4% in the United States by 2021. According to LMC Automotive forecasts, Teslas and other all-electric vehicles make up 2.6% or around 394,000 of those.

— CNBC’s Michael WaylandContributed reporting