A $1,000 investment in the company would be worth more than $12,000. A $1,000 investment in Tesla in November 2011 would be worth just over $204,000 now, with the stock's price increasing from $5.74 to $1,229 over those 10 years. 3:13 PM ET Shares of GM are up about 189% in the past 10 years since being relisted in November 2010 following the 2008-2009 Financial Crisis bailouts. Cost basis and return based on previous market day close. Want to learn more about investing? Although patience has paid off handsomely for long-term investors in Tesla, this top performer looks to be headed for a breakdown. For a limited time, get 2 months of IBD Digital, Barrons and MarketWatch access for only $30. Nvidia is the only S&P 500 stock anywhere close in that time with a 11,424% gain. Tesla's stock closed just shy of $300 this past weekend. That's partly playing out in his company's stock performance, but also because taking out a $6 billion loan backed by Tesla shares to make the acquisition has that effect. Read our disclaimer. Past performance is not a reliable indicator of future results Tesla dvelopper et amliorer nos produits et services. And investors had better hope Tesla hits these targets. And if you invested in Tesla in 2010, when it made its initial public offering, that investment could have paid off, too. It's been an amazing more than decade-long ride for Tesla (TSLA) investors literally better than any other S&P 500 stock. A $10,000 investment in TSLA on the day of its IPO would be worth more than $1.16 million as of April 6. According to our calculations, a $1000 investment made in August 2011 would be worth $148,405.95, or a 14,740.59% gain, as of August 25, 2021. Given the company has become the largest player in that industry globally, it's safe to say its journey so far has been a wild success.But Tesla continues to expand into new areas with astronomical potential, which makes its stock tricky to value. Electric vehicle (EV) leader Tesla (TSLA 2.57%) wasn't always the household name and portfolio-changing stock it's viewed as today. While Tesla has performed well overall, any individual stock can over- or underperform and past returns do not predict future results. . Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Tesla's stock is certainly on hyperdrive, explaining its strong 99 IBD Composite Rating. It has now begun shipping the Model Y from its Gigafactory in Texas, where it is incorporating its 4680 battery cell made in-house, which is likely to be an important development in light of the supply chain crisis still gripping the auto industry. Here's Why. But as deliveries increased, you can see how free cash flow turned positive and kept climbing with deliveries. That's more than a 20,000% return. Realtime quote and/or trade prices are not sourced from all markets. Tesla (NASDAQ: TSLA) became a publicly traded company in June 2010, and back then, electric vehicles were the whole of its business. Tesla outperformed every single large stock currently in S&P 500 plus all those on the midsized S&P 400 and S&P 600 small caps on a percentage basis, shows an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith. Subscribe to CNBC Make It on YouTube! The new era of energy production is linked to old-school metals extraction. Funding secured.". While it could be that investors are experiencing a serious case of FOMO after the company's major shareholder Ron Baron predicted Tesla's value will exceed $1 trillion in the next 10 years, shares have seen above-average volume on retail trading platforms like Robinhood, an investing app that's often favored by millennials, which could be adding to the rally gaining steam. Although Tesla does generate revenue from its energy storage and solar installation operations, the vast majority of its sales are tied to (pardon the pun) cyclical-driven EVs. None rival Tesla's sheer wealth creation power. 2 Things the Smartest Investors Know About Tesla Stock, Tesla Makes Huge Strategic Decision With Massive Implications for Tesla Stock Investors, A Bull Market Is Coming: 2 Stocks That Could Skyrocket, U.S. Money Supply Is Doing Something It Hasn't Done in 90 Years, and It May Signal a Big Move for Stocks, Why I Refuse to Chase the Maximum Social Security Benefit, 1 Trillion-Dollar Growth Stock Down 28% You'll Regret Not Buying on the Dip, A Bull Market Is Coming: 3 Stocks to Buy Without Hesitation, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, Copyright, Trademark and Patent Information. Now, shares have rebounded to a forward P/E of 49. It's not likely Tesla will maintain that kind of growth. The S&P 500 makes it easy to invest in some of the best stocks in America. [ See: Artificial Intelligence Stocks: The 10 Best AI Companies.] With the "crypto winter" talk dying down and digital assets heating up, here are the top cryptocurrencies to buy now. Investors May Not Have Seen the Worst of Tesla Stock. By signing in you agree with ourcommunications and usage terms. A young and growing business often loses money, but investors will eventually demand profits to know that the business is sustainable. The belief among a number of Wall Street analysts is that Tesla won't concede these first-mover advantages. 2 Things the Smartest Investors Know About Tesla Stock, Tesla Makes Huge Strategic Decision With Massive Implications for Tesla Stock Investors, A Bull Market Is Coming: 2 Stocks That Could Skyrocket, U.S. Money Supply Is Doing Something It Hasn't Done in 90 Years, and It May Signal a Big Move for Stocks, Why I Refuse to Chase the Maximum Social Security Benefit, 1 Trillion-Dollar Growth Stock Down 28% You'll Regret Not Buying on the Dip, A Bull Market Is Coming: 3 Stocks to Buy Without Hesitation, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, Copyright, Trademark and Patent Information. Earnings growth will have a significant impact on investment returns as companies mature. Musk and Tesla reached a settlement agreement with the SEC over the offending tweets. This doesn't factor in its other business segments, including commercial vehicles (the Tesla Semi), renewable power, and Optimus, a humanoid robot it plans to mass produce by 2027. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Follow Matt Krantz on Twitter @mattkrantz, How A 69-Year-Old Made A $481 Million Coronavirus Stock Gain, MarketSmith: Research, Charts, Data And Coaching All In One Place, 12 Stocks Turned $10,000 Into $413,597 In 12 Months, Check Out IBD's New IBD Live Panel Discussion, Extended Rally, Tesla Climax Run Are Volatile Mix; Nio Unveils Luxury EV. Shares of Tesla are up more than 50% since the beginning of October, and the company's market cap has grown to more than $1.2 trillion. Learn how you can make more money with IBD's investing tools, top-performing stock lists, and educational content. Enjoy your new account! But among the S&P 500's top-performing stocks over the past decade, one company is in a class of its own: electric-vehicle (EV) manufacturer Tesla (TSLA 2.57%). Despite a sharp rebound in the early months of 2023, investors who acquired the stock in late 2020 are still treading water, and anyone who bought in at all-time highs just a year later is still nursing a more than 50% loss on paper. It delivered almost 1 million EVs in 2021, and in the first quarter of this year, delivered another 310,000, some 67% more than a year ago. Despite a sharp rebound in the early months of 2023, investors who acquired the stock in late 2020 are still treading water, and anyone who bought in at all-time highs just a year later is still nursing a more than 50% loss on paper. After the take-private tweets, Musk faced fraud charges from the SEC. Even though most of us would love to have made $10,000 by simply letting . Don't miss: If you invested $1,000 in Chipotle 10 years ago, here's how much money you'd have now. These companies stand to benefit from a generational shift in consumer behavior. That works out to a more than 70% average annual return. Plainly put, Tesla's incredible decade-plus rally has tracked the even more incredible growth of its underlying business. Tesla's stock surged a whopping 23% on Tues. Feb 4, 2020, pushing its market value up more than 3,600% since the electric-car maker first sold stock in 2010. Companies will seek the highest valuation they can when going public, and newly public stocks tend to underperform the larger market in the short and medium term. Tesla (NASDAQ: TSLA) stock has made investors wealthy over the years. Answer (1 of 4): Funny question to ask me on the day that Tesla announced that they'd be building the Model 3 and selling it for $35,000, I decided that I'd be buying one and had the clever (?) Nearly a decade later, a $1,000 investment in Tesla made in 2010 would be worth more than $36,000 as of Feb. 4, 2020, according to CNBC calculations. Could Government Drug-Price Negotiations Sound The Death Knell For Biotech Stocks? Tesla is infamous for unveiling a product (like the Cybertruck) and taking several years to bring it to market. Key Details. 1 strategy for starting a lucrative business, stock market has historically increased in value over time. Nonetheless, the company is worth substantially more today than it was at its initial public offering (IPO) -- even after accounting for the 62% drop in its share price this year.Here's how the company got there, and just how much early investors have been rewarded. It is traded on . Instead, the CEO is planning on requiring candidates to "pass a hardcore coding test" and have a "deep understanding" of artificial intelligence. As a reference, analysts call for earnings per share (EPS) to average 24% annual growth over the next three to five years. If you had invested $5,000 and been lucky enough to get in at the IPO price of $17, your Tesla stock would be worth $102,050 today. Its energy business alone generated $3.9 billion in revenue last year, or more than 33 times the revenue of the entire business in 2010. Futures Steady, First Republic Fate In Focus, following the 2008-2009 Financial Crisis bailouts, already higher than what analysts think the stock should be worth, Tesla Stock Vs. BYD Stock: Tesla Tries To Halt Slide; China EV Giant Races Into Buy Area, Top 5 China Stocks To Buy And Watch: Tesla EV Rival BYD In Buy Area. Finally, to reap the enormous rewards an early Tesla investor would be sitting on today, you'd have to keep the faith and hold as the EV innovator lost money year after year for a full decade. It wasn't until 2020 that Tesla turned its first full-year profit. Not many people. If you invested $10,000 with founder Elon Musk 10 years ago, your stake would be worth $2.1 million now. Sign up for free today. That isn't the whole story though. For some, that just means Tesla stock is vastly overvalued, and brings to mind an analyst's critique last year that said Tesla wasn't worth more than $150 a share (it currently trades north of $700 a share). Learn More. are thinking about getting into investing, Warren Buffett agrees that it's a smart idea. Invest better with The Motley Fool. But this doesn't mean that the S&P is a worse investment. idea to buy $10,000 in TSLA and see if I could use any gains in the stock price to help pay for the c. Invest better with The Motley Fool. entities, such as banks, credit card issuers or travel companies. Despite the growth already achieved, sales are still accelerating. A Division of NBC Universal, Smith Collection/Gado | Archive Photos | Getty Images, How this FIRE couple retired in their 30s with $870K in Arizona, How much you'd have if you invested $1,000 in the S&P 500 a decade ago, How much money you'd have if you invested $1,000 in Microsoft 10 years ago, Why you may want to be skeptical of funds that invest like politicians, Why procrastinating on your IRA contributions could cost you thousands, Mark Cuban shares his No. Even if Tesla's market share falls as competition ramps up (which will likely happen), the addressable market is big enough that Tesla could grow by multiples in volume and revenue from where it is today. Risk factors and time horizon matter when deciding where to put your money. According to data tracked by InsideEVs, global plug-in EV registrations were approximately 8.8 million through 11 months of 2022 and could hit around 10 million once December data is tallied. Tesla's 2022 EPS of $4.07, growing 24% annually for five years, puts 2027 EPS at $11.93. Although hybrid vehicles like Toyota Motor Corp.'s (TM) Prius had been around for some time, they certainly weren't sports cars and were a far cry from what one might consider luxury vehicles. In fact, most experts, includinglegendary investor Warren Buffett, say it's the best place for most people to put their money because it holds every stock in the index, making it automatically diversified. Even having just one of these game-changing stocks in your portfolio for the past decade could have resulted in life-changing wealth. Investors May Not Have Seen the Worst of Tesla Stock. Accounting for the Tesla stock splits, this debut-day investor would hold 8,820 shares today. The Motley Fool has positions in and recommends Tesla. Even if the P/E compresses to 25, the resulting share price is $298, a 54% total return over five years. The EV opportunity is massive, and Tesla should play a big part in its future. Over the past roughly 10 years, Tesla's market value soared $1 trillion to hit $1.18 trillion. Since hitting their respective all-time highs between mid-November and the first week of January, the timeless Dow Jones Industrial Average, broad-based S&P 500, and growth-focused Nasdaq Composite, have lost as much as 19%, 24%, and 34% of their value, respectively. Is Elon Musk Listening? In stark contrast to the $1.16 million the Tesla IPO investor would be sitting on, a humble S&P 500 investor who put $10,000 into the benchmark index on the same day in 2010 would have $39,424 at market close on April 6 just 3.4% of what the early electric vehicle believer would've ended up with. A similar investment in the S&P 500 would have given you a 357.4% return. Instead of trying to beat the market, index funds allow you to keep up with it. It's a #millionaire maker.https://t.co/BJLaPeMWBx.

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