Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. A $1,000 investment in the company would be worth more than $12,000. Elon Musk Cut Off OpenAI's Access To Twitter's Data, Report Reveals. 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. Despite the growth already achieved, sales are still accelerating. Here's Why. Si vous souhaitez personnaliser vos choix, cliquez sur Grer les paramtres de confidentialit. Learn More. Don't miss: If you invested $1,000 in Chipotle 10 years ago, here's how much money you'd have now. 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. 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. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. This means its split-adjusted IPO price is about $1.13 per share. Although patience has paid off handsomely for long-term investors in Tesla, this top performer looks to be headed for a breakdown. 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. . (SecondSide/stock.adobe.com). However, an abundance of headwinds could end this EV manufacturer's incredible 12-year run. But due to several aggressive stock splits in recent years, Tesla's long-term performance is even more impressive. Despite being a visionary, Musk has created all sorts of legal, financial, and operating headaches for the company he runs. Accounting for the Tesla stock splits, this debut-day investor would hold 8,820 shares today. And investors had better hope Tesla hits these targets. 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. A Tesla Model S charging. Musk and Tesla reached a settlement agreement with the SEC over the offending tweets. U.S. News' 10 best stocks to buy for 2023 list is up 13.1% through April 24, compared to a 7.7% gain for the S&P 500. Tesla stock plunged 65% in 2022 and hasn't fully recovered. In August 2018, Tesla's CEO, Elon Musk, sparked controversy with a now infamous tweet that said: "Am considering taking Tesla private at $420. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. But this doesn't mean that the S&P is a worse investment. As a reference, analysts call for earnings per share (EPS) to average 24% annual growth over the next three to five years. To make the world smarter, happier, and richer. Over the past roughly 10 years, Tesla's market value soared $1 trillion to hit $1.18 trillion. Why Is Everyone Talking About Tesla Stock? 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. To make the world smarter, happier, and richer. By December 2019, its shares had reached an all-time high with a share price of $393.15 which even surpassed intraday highs reached when CEO Elon Musk sent his "funding secured" tweet. To make the world smarter, happier, and richer. The. Want to learn more about investing? This would now be 8,820 shares. Electric vehicles giant Tesla Inc. (ticker: TSLA) is a household name today. The company is expected in 2022 to make $8.94 a share on an adjusted basis, up nearly 300% from 2020. It's a multi-millionaire maker. 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S&P 500: How Much $10,000 Invested In Tesla Stock 10 Years Ago Is Worth Now | Investor's Business Daily It's been an amazing 10-year ride for Tesla investors literally better than any. 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. By signing up you agree with ourcommunications and usage terms. Investors May Not Have Seen the Worst of Tesla Stock. 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. 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. As noted, today the EV maker's stock is down to around $700 a share, which hurts if you got in near the top, but means you're still doing phenomenally well since the IPO. Even as Tesla confronts a growing number of competitors, its sales are ramping up. To build on this point, Tesla's shares ended this past week at a nosebleed multiple of 56 times Wall Street's forecast earnings per share (EPS) in 2023. *Real-time prices by Nasdaq Last Sale. Analysts think this is the year Tesla drives even further into the black. 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. That was firmly above its indicated range of $14 to $16 . The Motley Fool has positions in and recommends Tesla and Twitter. Here's Why. These mutual funds from Charles Schwab offer a combination of broad diversification and low fees. 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. The stock is still reasonably valued despite a recent bounce off its lows. Invest better with The Motley Fool. Best Parent Student Loans: Parent PLUS and Private. What Tesla as a company has done in the last dozen-plus years is nothing short of miraculous, and its stock price has rightfully ballooned along with profits. 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. That strong performance comes even though the stock has fallen more than 50% from its . Get access to free IBD eventsonline & in-person! Investors May Not Have Seen the Worst of Tesla Stock. Here's Why. 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). A $10,000 investment in TSLA on the day of its IPO would be worth more than $1.16 million as of April 6. 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. 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. Earnings growth will have a significant impact on investment returns as companies mature. 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. 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. "Basically, I'm trying to accomplish an outcome where Tesla can operate at its best, free from as much distraction and short-term thinking as possible, and where there is as little change for all of our investors, including all of our employees, as possible," he wrote in the letter, which was also sent to Tesla employees. The same $10,000 put into the S&P 500 during that time grew just 274% to $37,376. Consumer staples stocks are the workhorses of any investment portfolio. 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. 86% of retail CFD accounts lose money, Elon Musk Shares His Superpower, Explains Why He's Best-Suited To Comment On The Economy, Elon Musk Gives Dire Warning On Economy If Fed Doesn't Change Course: 'Mark My Words', Elon Musk expects to spend $2 billion on Starship rocket after first launch explosion 'slightly' exceeded expectations. 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. 2000-2023 Investor's Business Daily, LLC. Yet among the 500 companies that make up the index, 20 of them have returned approximately 1,100% or higher over the trailing decade. Tesla (NASDAQ: TSLA) stock has made investors wealthy over the years. Had you invested $10,000 in Tesla stock back in 2019, your investment would be worth more than $90,000 today. In short, RECs are inflating how profitable Tesla really is, which makes its nosebleed valuation that much worse. All rights reserved. Bond funds have some distinct advantages over holding individual bonds. Incredible. In particular, nearly every projection offered by Musk for when a new EV or technology will become available fails to come to fruition. 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. Subscribe to our daily newsletter to get investing advice, rankings and stock market news. Shares are up just 94% in the past 10 years. Learn how you can make more money with IBD's investing tools, top-performing stock lists, and educational content. Learn More. Even having just one of these game-changing stocks in your portfolio for the past decade could have resulted in life-changing wealth. Where Would You Be If You'd Invested $1,000 in Tesla Five Years Ago? Who's better to bet on than Musk? Tesla (NASDAQ: TSLA) became a publicly traded company in June 2010, and back then, electric vehicles were the whole of its business. 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. 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. That strong performance comes even though the stock has fallen more than 50% from its high in November 2021. Tesla has done better than any other S&P 500 stock in fact, it's worth approximately seven times General Motors and Ford put together. 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. 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. That isn't the whole story though. 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. (Getty Images). 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 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. It's not likely Tesla will maintain that kind of growth. [ See: Artificial Intelligence Stocks: The 10 Best AI Companies.] on this page is accurate as of the posting date; however, some of our partner offers may have expired. All Rights Reserved. The company has several irons in the fire, though investors must see how these opportunities develop over the coming years. The last dozen-plus years have also seen the company diversify into areas like insurance, charging infrastructure, and energy storage and generation. Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. Go back a few more years and your return is. Here's a snapshot of how the markets look now. Electric vehicle (EV) leader Tesla (TSLA 2.57%) wasn't always the household name and portfolio-changing stock it's viewed as today. But as deliveries increased, you can see how free cash flow turned positive and kept climbing with deliveries. A young and growing business often loses money, but investors will eventually demand profits to know that the business is sustainable. 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. Tesla (NASDAQ: TSLA) became a publicly traded company in June 2010, and back then, electric vehicles were the whole of its business. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Copyright 2023 Digg All Rights Reserved. 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. Considering that these forward-looking innovations and new EV offerings are heavily built into Tesla's valuation, this is a big problem. Investors look to the precious metal amid market uncertainty. The Motley Fool has a disclosure policy. Over the same time, the vaunted S&P 500 has grown at an annualized rate of 11.3%. Tesla's 2022 EPS of $4.07, growing 24% annually for five years, puts 2027 EPS at $11.93. 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. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. The Motley Fool has a disclosure policy. 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. It's been an amazing decade-long ride for Tesla $TSLA investors literally better than any other S&P 500 #stock. he doesn't care if you have a high school degree. Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD Digital for only $20! Under the Inflation Reduction Act, the Centers for Medicare and Medicaid Services will begin negotiating the prices of the most expensive medicines the agency buys. Key Details. 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. But even a conservative run through the math shows that it can still be a worthwhile investment. Read our disclaimer. 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. If you invested back then when the initial public offering's price per share was just $17, your investment would have paid off. As a reminder, you can change your profile and email settings in your profile. Sign up for free today. Go back a few more years and your return is even greater. Analysts say these cheap stocks have plenty of upside. Can Earnings Recharge Electric Vehicle Stocks? 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. 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. Even if the P/E compresses to 25, the resulting share price is $298, a 54% total return over five years. Why Is Everyone Talking About Tesla Stock? If you had invested in Tesla last November, when the stock was worth just over $400 a share, you would have nearly tripled your money. 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. That's already higher than what analysts think the stock should be worth in 12 months, or 910.94 a share. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. It's a #millionaire maker.https://t.co/BJLaPeMWBx. entities, such as banks, credit card issuers or travel companies. The Motley Fool has a disclosure policy. Despite Tesla's massive stock growth, any individual stock can overperform or underperformandpast returns do not predict future results. After the take-private tweets, Musk faced fraud charges from the SEC. Experts like CNBC's Jim Cramer have described the stock as going "up endlessly on nothing.". Your accounts lets you Digg (upvote) stories, save stories to revisit later, and more. Tesla was founded in 2003 and went public in 2010. This video will highlight just how much . Unlike the software industry, scaling in the capital-intensive auto industry is difficult and expensive. Funding secured.". It's been an amazing more than decade-long ride for Tesla (TSLA) investors literally better than any other S&P 500 stock. Sign up now: Get smarter about your money and career with our weekly newsletter, Don't miss: Jay Leno on why he still works at 71: I don't want to be 'a rich guy that sits in the pool', Get Make It newsletters delivered to your inbox, Learn more about the world of CNBC Make It, 2023 CNBC LLC. 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. 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. Unfortunately, there is no time machine to allow you to go back in time and invest in Tesla. Tesla recently closed out its 2022 fiscal year, delivering 1.31 million vehicles. Here's how much a $10,000 investment in Tesla's IPO would be worth now. CEO Elon Musk has always been a somewhat controversial figure, but since his attempt to buy Twitter, he's now much more of a lightning rod for criticism. As for how shareholders would fare longer-term, if you had invested $1,000 in Tesla one year ago, on Aug. 11, 2021, your investment would be up by about 23%, according to CNBC calculations, for a . Subscribe to CNBC Make It on YouTube! So, if you had invested $10,000 at this price, you would have acquired 588 shares. To add to the above, EVs are a no-brainer growth opportunity over the coming decades. Tesla is infamous for unveiling a product (like the Cybertruck) and taking several years to bring it to market. Tesla went public on June 29, 2010 at $17 per share. Here's Why. In my daily YouTube video series, I'll be covering latest tesla news and providing insights on how to make smart investment decisions. If that were all there was to the story, this investment would have walloped the wider market over the last 13 years, rising nearly sevenfold. Accounting for the. However, since its IPO, Tesla has undergone two forward stock splits. Invest better with The Motley Fool. And it doesn't spend any money on advertising -- word of mouth has proved sufficient thus far. That put the EV maker on the path to achieve Musk's goal of delivering 20 million Teslas by 2030. 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. Past performance is not a reliable indicator of future results Tesla 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. 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. This includes clean-energy transportation for consumers and businesses. This would give Tesla roughly 13.1% market share of EVs sold last year. 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. Tags: investing, stock market, Tesla Motors, Elon Musk, Toyota, IPOs, money, revenue, profits, technology, electric vehicles. Cost basis and return based on previous market day close. By signing in you agree with ourcommunications and usage terms. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Nvidia is the only S&P 500 stock anywhere close in that time with a 11,424% gain. 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. Despite this short-term pain, time has proved to be an incredible ally for investors. 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. If You Invested $10,000 in Tesla Stock in 2013, This Is How Much You Would Have Today. 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. Seasoned investor Warren Buffett agrees that it's a smart idea to start with index funds, in part because they fluctuate with the market, making them less risky than individually selected stocks. Not many people. Second, it's just not easy to pick market-beating stocks. 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%. Helpful "tripwires" can guide your decision-making. Nous, Yahoo, faisons partie de la famille de marques Yahoo. That's more than a 20,000% return. Last week, Musk announced he's recruiting new staffers for Tesla's artificial intelligence team and he doesn't care if you have a high school degree. Still, Tesla is the biggest, most advanced EV manufacturer. Enjoy your new account! Tesla is now showing it is a profit machine. Tesla is worth roughly seven times General Motors and Ford, combined. Registration on or use of this site constitutes acceptance of our. Artificial Intelligence Stocks: The 10 Best AI Companies. Not only is it seeing more competition from upstarts like Rivian and Lucid, which want to break into the market, but established automakers like Ford, GM, and Toyota are vying for a slice of the pie, too. mesurer votre utilisation de nos sites et applications. Bed Bath & Beyond Stock To Stop Trading On May 3 In Bankruptcy Proceeding; Are Meme Stocks A Buy Now? Comparative assessments and other editorial opinions are those of U.S. News These stocks outperformed the S&P 500 in 2008 and 2020. The electric vehicle market and alternative projects give Tesla more long-term growth potential. 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? Investors looking to participate in the growth of the metaverse can use these six ETFs for exposure. Instead, the CEO is planning on requiring candidates to "pass a hardcore coding test" and have a "deep understanding" of artificial intelligence. That means even next-generation automakers like Tesla could see reduced demand for EVs. It enacted a 5-for-1 split on Aug. 31, 2020, and recently completed a 3-for-1 split on Aug. 25, 2022. And even including all charges, analysts think Tesla will make $7.18 a share or $8.7 billion. TTM = trailing 12 months. Sign up for stock news with our Invested newsletter. The belief among a number of Wall Street analysts is that Tesla won't concede these first-mover advantages. In calculating returns, it's more practical to assume the early Tesla investor purchased shares at its closing price of $23.89. 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. 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. The content BREAKING: Futures Steady, First Republic Fate In Focus. If you're one of the lucky few to have held firm on Tesla throughout the years, kudos! 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%). Learn how to trade stocks like a pro with just 3 email lessons! Tesla has been the top-performing S&P 500-listed stock over the past decade. That works out to a more than 68% average annual return. The information and content are subject to change without notice. In order to combat climate change, most developed countries are emphasizing clean-energy initiatives. Over those 10 years, Tesla went from selling just the Roadster to offering the Models S, 3, X and Y. Sent every morning. 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). 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. Over the trailing-10-year period, the S&P 500 has returned a hearty 183%, and that's not including dividends paid. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Tesla went public in 2010 at a price of $17 per share. Amazon Dives, While First Solar Plunges 12% On Earnings Miss. 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. Now, shares have rebounded to a forward P/E of 49. If You Invested $10,000 in Tesla Stock at Its IPO, Here's . By comparison, a $1,000 investment in the. *Average returns of all recommendations since inception. Over the same time period, the S&P 500 index would have given you a 142.4% return. No, Tesla is not likely an overnight multibagger anymore, like it was in 2019. The EV maker now owns a dominant position in the market with a 72% share. Five years ago, on Nov. 2, 2016, Tesla was trading at around $38 per share. A $10,000 investment in TSLA on the day of its IPO would be worth more than $1.16 million as of April 6. Lastly, Tesla has pushed into the profit column on a recurring basis. Tesla's premium valuation is also a reflection of the company's competitive advantages and innovations becoming tangible.