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. That works out to a more than 70% average annual return. The last dozen-plus years have also seen the company diversify into areas like insurance, charging infrastructure, and energy storage and generation. Shares are up just 94% in the past 10 years. A $1,000 investment on Nov. 2, 2020 would be worth around $2,940, representing a return of 193%, according to CNBC calculations made Wednesday morning. As a potential recession looms, learn what risk factors to watch for and how to optimize your portfolio. Si vous ne souhaitez pas que nos partenaires et nousmmes utilisions des cookies et vos donnes personnelles pour ces motifs supplmentaires, cliquez sur Refuser tout. It's been an amazing decade-long ride for Tesla $TSLA investors literally better than any other S&P 500 #stock. Change is afoot in the global semiconductor industry, and investors can ride the wave. Why Is Everyone Talking About Tesla Stock? 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. This video will highlight just how much . (SecondSide/stock.adobe.com). Pour en savoir plus sur la faon dont nous utilisons vos donnes personnelles, veuillez consulter notre politique relative la vie prive et notre politique en matire de cookies. Despite Tesla's sudden spike, the company's faced past challenges that caused its market performance to falter. Subscribe to our daily newsletter to get investing advice, rankings and stock market news. And because thestock market has historically increased in value over time, these low-cost funds are considered relatively safe, reliable investments. That's more than a 20,000% return. If you invested back then when the initial public offering's price per share was just $17, your investment would have paid off. Best Parent Student Loans: Parent PLUS and Private. Image source: Tesla. What about General Motors (GM) and Ford (F)? Plainly put, Tesla's incredible decade-plus rally has tracked the even more incredible growth of its underlying business. While Tesla shares suffered due to Musk's Twitter activity, its stock has been on the rebound. Long-term investors might prefer these low-cost Fidelity mutual funds as core portfolio holdings. To begin with, the company is being treated as if it's not cyclical and will somehow escape the supply chain challenges currently afflicting other automakers. In 2019, it was reported that Tesla brought in $24.6 billion in revenue, which is a $2.8 billion increase from the year prior. So, if you had invested $10,000 at this price, you would have acquired 588 shares. Learn More. The EV maker now owns a dominant position in the market with a 72% share. Ownership data provided by Refinitiv and Estimates data provided by FactSet. That was firmly above its indicated range of $14 to $16 . But even a conservative run through the math shows that it can still be a worthwhile investment. Global demographics are signaling a gray wave over the next decade that could boost consumer spending in key areas. Tesla remains the most valuable auto stock on the market. They're almost rounding errors. 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%). 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. On the same day, Musk also published a letter on Tesla's website explaining his thinking. The stock is still reasonably valued despite a recent bounce off its lows. At the time of its IPO, Tesla was undergoing an ambitious experiment that CEO Elon Musk has since admitted was more likely to fail than succeed. Could Government Drug-Price Negotiations Sound The Death Knell For Biotech Stocks? If an investor would have put $10,000 to work at Tesla's IPO price, that would have purchased 588 shares (not including fractional shares or any commission-related expenses). It's a multi-millionaire maker. Artificial Intelligence Stocks: The 10 Best AI Companies. Accounting for the Tesla stock splits, this debut-day investor would hold 8,820 shares today. Even as Tesla confronts a growing number of competitors, its sales are ramping up. 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). At a market capitalization of roughly $600 billion, it's one of the 10 largest public companies in the U.S. That said, the stock's medium-term performance has been lackluster. Rich Duprey has no position in any of the stocks mentioned. afficher des publicits et des contenus personnaliss en fonction de vos profils de centres dintrt; mesurer lefficacit des publicits et contenus personnaliss; et. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. 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. And that's no mystery for growth investors who know what to look for. To make the world smarter, happier, and richer. And it doesn't spend any money on advertising -- word of mouth has proved sufficient thus far. Amazon Dives, While First Solar Plunges 12% On Earnings Miss. Consider a side-by-side comparison of high-level company metrics back in fiscal 2010 compared to its last reported fiscal year in 2022: The stock's rapid 116-fold ascent was mirrored by a nearly 700-fold uptick in revenue and a dramatic improvement in profitability. Electric vehicle (EV) leader Tesla (TSLA 2.57%) wasn't always the household name and portfolio-changing stock it's viewed as today. A $1,000 investment in the company would be worth more than $12,000. At market close on April 6, the stock closed at $185.06 more than 116 times its adjusted closing price on the first day of trading. Tesla (NASDAQ: TSLA) became a publicly traded company in June 2010, and back then, electric vehicles were the whole of its business. In my daily YouTube. Bond funds have some distinct advantages over holding individual bonds. Tesla stock plunged 65% in 2022 and hasn't fully recovered. 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. To make the world smarter, happier, and richer. The International Energy Agency said that there were 16.5 million EVs on the road as of 2021, but that could grow to 350 million by 2030, depending on how charging infrastructure develops and the availability of resources for batteries. Tesla went public in 2010 at a price of $17 per share. You can see in the chart below that its free cash flow was negative that year. It faced this problem between 2017 and 2019 -- it needed to make enough Model 3s (its lowest-priced model) to turn a profit. Tesla shares are up more than 140 percent over the past year. If you are thinking about getting into investing, experts often advise starting with index funds, which hold every stock in an index, such as the S&P 500. Despite near-term financial sector pressure, value-minded investors should consider these funds for the long haul. Despite Tesla's massive stock growth, any individual stock can overperform or underperformandpast returns do not predict future results. As a reminder, you can change your profile and email settings in your profile. The S&P 500 makes it easy to invest in some of the best stocks in America. It's not a direct comparison, but it shows you how little respect Tesla's future-looking growth outlook is getting from investors. It has also announced the Cybertruck and Tesla Semi, but has remained noncommittal about launch dates for both vehicles. are thinking about getting into investing, Warren Buffett agrees that it's a smart idea. For those investors, we're talking about a near 13,800% increase in value,meaning a $10,000 investment 12 years ago would be worth $1.39 million today. Lastly, Tesla has pushed into the profit column on a recurring basis. How on earth does a stock go from being relatively obscure to the fifth-largest publicly traded company in the U.S. in just 12 years? on this page is accurate as of the posting date; however, some of our partner offers may have expired. After the take-private tweets, Musk faced fraud charges from the SEC. So, don't miss out on the opportunity to grow your knowledge and wealth. 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. 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. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. That's just 14% compounded annually. That's already higher than what analysts think the stock should be worth in 12 months, or 910.94 a share. You will get all news about Tesla and Elon Musk. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Here's Why. Tesla's stock closed just shy of $300 this past weekend. But that's still a solid buying opportunity for long-term investors. Things can change fast on Wall Street; few traders wanted to touch Tesla last month, but most probably wish they had bought when the stock traded down to a price-to-earnings ratio (P/E) near 25. This would now be 8,820 shares. This Tesla Analyst Might Have A Solution That Tackles The Company's Mounting Model 3 Inventories. For a limited time, get 2 months of IBD Digital, Barrons and MarketWatch access for only $30. That was firmly above its indicated range of $14. 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's not likely Tesla will maintain that kind of growth. Helpful "tripwires" can guide your decision-making. Don't miss: If you invested $1,000 in Chipotle 10 years ago, here's how much money you'd have now. The Motley Fool has a disclosure policy. 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. The answer mostly lies with innovation and its CEO, Elon Musk. Learn how to trade stocks like a pro with just 3 email lessons! It's also worth more than Ford, GM, Stellantis, and Hondacombined! The. Mass-producing electric vehicles and making them sexy and desirable was practically a pipe dream, and major automakers neglected the market opportunity, leaving an open lane for Tesla. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. 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. A young and growing business often loses money, but investors will eventually demand profits to know that the business is sustainable. However, an abundance of headwinds could end this EV manufacturer's incredible 12-year run. Authors may own the stocks they discuss. Unlike the software industry, scaling in the capital-intensive auto industry is difficult and expensive. Learn More. Over the past five quarters, it's produced a profit based on generally accepted accounting principles (GAAP) of between $1.14 billion and $3.32 billion. The other 96% collectively matched the return of U.S. Treasury bills. Tesla's stock is certainly on hyperdrive, explaining its strong 99 IBD Composite Rating. 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. Bed Bath & Beyond Stock To Stop Trading On May 3 In Bankruptcy Proceeding; Are Meme Stocks A Buy Now? But this doesn't mean that the S&P is a worse investment. Realtime quote and/or trade prices are not sourced from all markets. Had you invested $10,000 in Tesla stock back in 2019, your investment would be worth more than $90,000 today. At around $690 billion at the time of this writing, it is worth more than double as much as the next biggest carmaker, Toyota, which is worth $251 billion. So what happened that electrified investor returns, and can that translate to future return potential? If you could travel back in time and invest $1,000 in Microsoft back then, you would have made a profit of a staggering 1012.22%, or in other words, your $1,000 investment would balloon to $11,122.21 today. A $1,000 investment then would have grown 3,025% and be worth around $31,286 as of Wednesday morning. Tesla is infamous for unveiling a product (like the Cybertruck) and taking several years to bring it to market. Here's Why. The belief among a number of Wall Street analysts is that Tesla won't concede these first-mover advantages. No, Tesla is not likely an overnight multibagger anymore, like it was in 2019. A lot of that has to do with the introduction of the Model 3 and Model Y, the mass-market sedan and crossover EV, respectively. 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. Tesla crossing that threshold to positive cash flow showed investors that the business was sustainable. TSLA Performance vs. the. 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. Key Details. It's a #millionaire maker.https://t.co/BJLaPeMWBx. Tesla has been the top-performing S&P 500-listed stock over the past decade. If you invested $10,000 with founder Elon Musk 10 years ago, your stake would be worth $2.1 million now. Invest better with The Motley Fool. Tesla (NASDAQ: TSLA) became a publicly traded company in June 2010, and back then, electric vehicles were the whole of its business. Consumer staples stocks are the workhorses of any investment portfolio. And at its current value, Tesla is worth roughly five times more than Toyota Motor (TM), making it the most valuable automaker in the world. That proof of profitability had much to do with the stock's lucrative run from 2019 to the present day. On Monday, upon news of rental company Hertz making a huge purchase for their fleet, Tesla's stock became valued at a record $1,023.59. Here's Why. BREAKING: Futures Steady, First Republic Fate In Focus. 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. Sean Williams has no position in any of the stocks mentioned. Over the same time period, the S&P 500 index would have given you a 142.4% return. Continue reading, Plus500. Tesla is the first automaker in over five decades to have successfully built itself from the ground up to mass production. 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. The company had its ups and downs over the years, facing the threat of bankruptcy as recently as between 2017 and 2019, when Tesla increased the production volume of its Model 3. Still, Tesla is the biggest, most advanced EV manufacturer. A $10,000 investment in TSLA on the day of its IPO would be worth more than $1.16 million as of April 6. The consumer discretionary stock debuted on June 29, 2010, and it's up a stunning 24,389.7% since then to a recent high Monday of 1170.12. If an investor would have put $10,000 to work at Tesla's IPO price, that would have purchased 588 shares (not including fractional shares or any commission-related expenses). Making the world smarter, happier, and richer. Even having just one of these game-changing stocks in your portfolio for the past decade could have resulted in life-changing wealth. Even though most of us would love to have made $10,000 by simply letting . Si vous souhaitez personnaliser vos choix, cliquez sur Grer les paramtres de confidentialit. 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. If you're one of the lucky few to have held firm on Tesla throughout the years, kudos! If you're investing with a multiyear horizon, the EV maker's expected growth will whittle away at that valuation reasonably quickly. mesurer votre utilisation de nos sites et applications. The financial regulator alleged his claims that he had "funding secured," were false and misleading. Tesla went public on June 29, 2010 at $17 per share. With hopes this high, there's little room for error. Despite being a visionary, Musk has created all sorts of legal, financial, and operating headaches for the company he runs. Its current share price is hovering at around $950. 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. Past performance is not a reliable indicator of future results Tesla The same $10,000 put into the S&P 500 during that time grew just 272% to $37,115. The company has several irons in the fire, though investors must see how these opportunities develop over the coming years. Lorsque vous utilisez nos sites et applications, nous utilisons des, authentifier les utilisateurs, appliquer des mesures de scurit, empcher les spams et les abus; et. Offers may be subject to change without notice. Tesla's stock is having a monster month, despite some recent hiccups, including a flawed rollout of its driver assistance software and confusion over whether Hertz really inked a deal with the electric automaker to purchase 100,000 vehicles. It's going to take decades for this vehicle replacement cycle to take shape, which provides Tesla with a long runway to grow its business. If you had invested in Tesla in 2011, you would have a five-figure return. And even including all charges, analysts think Tesla will make $7.18 a share or $8.7 billion. *Average returns of all recommendations since inception. However, Tesla is also one of the most shorted, or bet-against, names on Wall Street. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. he doesn't care if you have a high school degree. The Motley Fool has positions in and recommends Tesla. Through the first six months of 2022, the company has delivered 564,743 EVs. Enjoy your new account! The major indexes are near 2023 highs after a big shakeout. The story for long-term shareholders, however, is much different. This means its split-adjusted IPO price is about $1.13 per share. And while it's a nice thought experiment to see what a $10,000 investment in Tesla at its IPO would be worth today, choosing these diamonds in the rough on Wall Street is exceedingly difficult to do in practice. Can Earnings Recharge Electric Vehicle Stocks? Investors looking to participate in the growth of the metaverse can use these six ETFs for exposure. 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. All Rights Reserved. Here's how much a $10,000 investment in Tesla's IPO would be worth now. *Real-time prices by Nasdaq Last Sale. Investors May Not Have Seen the Worst of Tesla Stock. The new era of energy production is linked to old-school metals extraction. Cost basis and return based on previous market day close. Second, it's just not easy to pick market-beating stocks. Investors know that even though Tesla (TSLA 2.57%) is trading sharply lower today compared to its all-time high last November, those who took a stake in the electric vehicle (EV) manufacturer's initial public offering (IPO) in 2010 would still be fabulously wealthy. 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. The Motley Fool has positions in and recommends Tesla and Twitter. The magnitude of Tesla's boom is almost difficult to fathom. Automotive manufacturing requires complex and expensive factories; a manufacturer like Tesla must make a lot of cars to spread out factory costs enough to turn a profit on each vehicle. As a reference, analysts call for earnings per share (EPS) to average 24% annual growth over the next three to five years. If You Invested $10,000 in Tesla Stock in 2013, This Is How Much You Would Have Today. Despite this short-term pain, time has proved to be an incredible ally for investors. In particular, nearly every projection offered by Musk for when a new EV or technology will become available fails to come to fruition. Instead, the CEO is planning on requiring candidates to "pass a hardcore coding test" and have a "deep understanding" of artificial intelligence. These stocks outperformed the S&P 500 in 2008 and 2020. Considering that these forward-looking innovations and new EV offerings are heavily built into Tesla's valuation, this is a big problem. 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. It's been an amazing more than decade-long ride for Tesla (TSLA) investors literally better than any other S&P 500 stock. This would give Tesla roughly 13.1% market share of EVs sold last year. 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. Top-notch innovation and a push to recurring profitability have made millionaires out of some early Tesla investors. The Motley Fool has positions in and recommends Tesla. TSLA stock, however, opened for trading at $19 per share, and finished the day at $23.89 a stellar one-day gain of 40.5%. In addition to outpacing its North American competition in terms of production, the company's batteries provide better capacity, range, and power than virtually all of its mostly nascent EV competitors. TTM = trailing 12 months. Sign up for free today. Tesla hit the public markets in June 2010, priced at $17 per share. It enacted a 5-for-1 split on Aug. 31, 2020, and recently completed a 3-for-1 split on Aug. 25, 2022. But revenue growth is still accelerating. If you had invested $10,000 with Tesla 10 years ago, your stake would be worth $1.8 million now. Invest better with The Motley Fool. 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 (?) The content That isn't the whole story though. Opinions expressed on this site are the author's alone, not those of a third-party entity, and have not been reviewed, approved, or otherwise endorsed. In fact, shares traded below those levels for the majority of normal trading hours, so even this price is somewhat conservative. Despite the growth already achieved, sales are still accelerating. By signing in you agree with ourcommunications and usage terms. . (Getty Images). The Most Important Ages for Retirement Planning: Age 59 , The Most Important Ages for Retirement Planning: Age 65, The Most Important Ages for Retirement Planning: Age 66, The Most Important Ages for Retirement Planning: Age 70 . Like this story? Furthermore, it has turned profitable and earnings growth rates are expanding as well. 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. Copyright 2023 Digg All Rights Reserved. However, since its IPO, Tesla has undergone two forward stock splits. It is traded on . Musk and Tesla reached a settlement agreement with the SEC over the offending tweets. Here's a snapshot of how the markets look now. 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. Why Is Everyone Talking About Tesla Stock? Incredible. Tesla's greater than 26,000% gain since its IPO is the result of investors' faith in Elon Musk as a visionary as well. Tesla (NASDAQ: TSLA) stock has made investors wealthy over the years. Best Cathie Wood Stocks To Watch: Coinbase, Block, Roku, Zoom Video; Tesla Races Higher, Tesla Stock, 6 Other Tech Titans Are Responsible For 86% Of S&P 500's 2023 Performance, Dow Jones Reverses After Key Inflation Data. In calculating returns, it's more practical to assume the early Tesla investor purchased shares at its closing price of $23.89. And if you invested in Tesla in 2010, when it made its initial public offering, that investment could have paid off, too. Over nine years and four months, that's an average annual. Every double-digit percentage decline in the major U.S. indexes throughout history (save for the current bear market) has eventually been cleared away by a bull market rally. There are many speculations as to why Tesla's stock jumped so much on Tuesday. 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. In other words, patience has truly been profitable. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. The Motley Fool has a disclosure policy. Had you invested $10,000 in Tesla stock back in 2019, your investment would be worth more than $90,000 today. If the U.S. and global economies continue to weaken on the heels of historically high inflation, consumers are almost certain to pare back their spending. Over those 10 years, Tesla went from selling just the Roadster to offering the Models S, 3, X and Y. Tesla is now showing it is a profit machine. Tesla lost money on a net income basis every year since it was founded in 2003, until 2020. Tesla went public on June 29, 2010, at a price of $17 per share, above its expected range of $14 to $16 per share, and last year exceeded $1,200 per share, which was after a 5-for-1 stock split in 2020 when shares were trading for over $2,200 each. Go back a few more years and your return is. JPMorgan is among possible First Republic Bank bidders. Analysts think this is the year Tesla drives even further into the black. Who's better to bet on than Musk? That means even next-generation automakers like Tesla could see reduced demand for EVs. *Average returns of all recommendations since inception. Join me every day as I break down the latest news and developments in the world of tesla stocks, tesla stock market, and tesla investing. When Tesla had its initial public offering (IPO) on June 29, 2010, the company priced the 13.3 million shares it was offering at $17, which was above the $14 to $16 expected IPO range.
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