While Tesla shares suffered due to Musk's Twitter activity, its stock has been on the rebound. 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. 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. This includes clean-energy transportation for consumers and businesses. However, an abundance of headwinds could end this EV manufacturer's incredible 12-year run. But it doesn't hurt if you invest in game-changing companies, either. 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. Could Government Drug-Price Negotiations Sound The Death Knell For Biotech Stocks? But this doesn't mean that the S&P is a worse investment. 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. Over nine years and four months, that's an average annual. That proof of profitability had much to do with the stock's lucrative run from 2019 to the present day. Tesla crossing that threshold to positive cash flow showed investors that the business was sustainable. Second, it's just not easy to pick market-beating stocks. Something else to take into consideration is that Tesla is still getting a boost from the sale of renewable energy credits (RECs). 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 how much a $10,000 investment in Tesla's IPO would be worth now Tesla hit the public markets in June 2010, priced at $17 per share. Here's Why. 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. 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). Where Would You Be If You'd Invested $1,000 in Tesla Five Years Ago? 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. Amazon Dives, While First Solar Plunges 12% On Earnings Miss. While Tesla has performed well overall, any individual stock can over- or underperform and past returns do not predict future results. The electric vehicle market and alternative projects give Tesla more long-term growth potential. The company is expected in 2022 to make $8.94 a share on an adjusted basis, up nearly 300% from 2020. "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 Motley Fool has a disclosure policy. Invest better with The Motley Fool. If you had invested $10,000 with Tesla 10 years ago, your stake would be worth $1.8 million now. Cost basis and return based on previous market day close. 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. Funding secured.". on this page is accurate as of the posting date; however, some of our partner offers may have expired. Despite near-term financial sector pressure, value-minded investors should consider these funds for the long haul. Tesla is worth roughly seven times General Motors and Ford, combined. Tesla, which has managed to garner the reputation of a gold standard over the years, is now a far bigger entity that what it started off since its IPO in 2010, with a market capitalization. In short, RECs are inflating how profitable Tesla really is, which makes its nosebleed valuation that much worse. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Not many people. Tesla's premium valuation is also a reflection of the company's competitive advantages and innovations becoming tangible. Plainly put, Tesla's incredible decade-plus rally has tracked the even more incredible growth of its underlying business. Whether you're a seasoned investor or just starting out, I'll help you stay up-to-date on all things related to the stock market. All Rights Reserved. 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. The financial regulator alleged his claims that he had "funding secured," were false and misleading. The new era of energy production is linked to old-school metals extraction. 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. The company has several irons in the fire, though investors must see how these opportunities develop over the coming years. TSLA Performance vs. the. 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. Tesla delivered 224,900 vehicles in 2018, its first full year of Model 3 production. Investors look to the precious metal amid market uncertainty. 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. Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. The S&P 500 makes it easy to invest in some of the best stocks in America. In particular, nearly every projection offered by Musk for when a new EV or technology will become available fails to come to fruition. Investors May Not Have Seen the Worst of Tesla Stock. You will get all news about Tesla and Elon Musk. Thanks for creating an account! That's just 14% compounded annually. 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. Sent every morning. 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. And it doesn't spend any money on advertising -- word of mouth has proved sufficient thus far. 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. Over the same time period, the S&P 500 index would have given you a 142.4% return. TSLA Revenue (TTM) data by YCharts. The same $10,000 put into the S&P 500 during that time grew just 274% to $37,376. Investors May Not Have Seen the Worst of Tesla Stock. Learn More. So, don't miss out on the opportunity to grow your knowledge and wealth. But that's still a solid buying opportunity for long-term investors. And even including all charges, analysts think Tesla will make $7.18 a share or $8.7 billion. Authors may own the stocks they discuss. Target-date retirement funds aren't for everyone. 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. dvelopper et amliorer nos produits et services. If you invested back then when the initial public offering's price per share was just $17, your investment would have paid off. Like this story? Tesla (NASDAQ: TSLA) became a publicly traded company in June 2010, and back then, electric vehicles were the whole of its business. 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. For a limited time, get 2 months of IBD Digital, Barrons and MarketWatch access for only $30. he doesn't care if you have a high school degree. To make the world smarter, happier, and richer. Tesla shares are up more than 140 percent over the past year. It's not a direct comparison, but it shows you how little respect Tesla's future-looking growth outlook is getting from investors. BREAKING: Futures Steady, First Republic Fate In Focus. Tesla (NASDAQ: TSLA) stock has made investors wealthy over the years. The content Read our disclaimer. 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. In fact, the S&P 500's first-half performance was its worst in over a half-century. Sign up for free today. That means even next-generation automakers like Tesla could see reduced demand for EVs. And, in the past six months, its stock grew 220% and exceeded a share price of $700 for the first time ever. If you invested $10,000 with founder Elon Musk 10 years ago, your stake would be worth $1.8 million now. Helpful "tripwires" can guide your decision-making. 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. In my daily YouTube. The stock is still reasonably valued despite a recent bounce off its lows. Here's Why. As CEO, Musk has brought four EVs into production, recently oversaw the opening of two new Gigafactories, and has offered plans to take the Cybertruck and Semi into production as soon as next year. Learn More. Tags: investing, stock market, Tesla Motors, Elon Musk, Toyota, IPOs, money, revenue, profits, technology, electric vehicles. The. 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. Tesla was founded in 2003 and went public in 2010. 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. But as deliveries increased, you can see how free cash flow turned positive and kept climbing with deliveries. But due to several aggressive stock splits in recent years, Tesla's long-term performance is even more impressive. A $10,000 investment in TSLA on the day of its IPO would be worth more than $1.16 million as of April 6. 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 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. 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. Artificial Intelligence Stocks: The 10 Best AI Companies. That works out to a more than 70% average annual return. Investors looking to participate in the growth of the metaverse can use these six ETFs for exposure. To make the world smarter, happier, and richer. Justin Pope has no position in any of the stocks mentioned. Tesla has been the top-performing S&P 500-listed stock over the past decade. 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. Still, Tesla is the biggest, most advanced EV manufacturer. Learn More. If you're one of the lucky few to have held firm on Tesla throughout the years, kudos! TTM = trailing 12 months. Comparative assessments and other editorial opinions are those of U.S. News 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. A Division of NBC Universal, Here's what universal basic income could mean for Americans, Here's how much you would have if you invested $1,000 in Nike ten years ago, Taylor Swift avoided an FTX lawsuit by asking a simple question, This 33-year-old went from a $60,000 salary to $140,000 in just 5 yearsher best negotiation advice, 4 things to know before taking an employee buyout, How much you'd have if you invested $1,000 in the S&P 500 a decade ago, Why a Harvard expert 'takes issue' with Zuckerberg's 'horrific' Meta layoffs, past returns do not predict future results, Ron Baron predicted Tesla's value will exceed $1 trillion in the next 10 years, on retail trading platforms like Robinhood, an investing app that's often favored by millennials, letter on Tesla's website explaining his thinking. Making the world smarter, happier, and richer. The major indexes are near 2023 highs after a big shakeout. That strong performance comes even though the stock has fallen more than 50% from its . That's more than a 20,000% return. 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. Bed Bath & Beyond Stock To Stop Trading On May 3 In Bankruptcy Proceeding; Are Meme Stocks A Buy Now? Ownership data provided by Refinitiv and Estimates data provided by FactSet. Analysts think this is the year Tesla drives even further into the black. Get access to free IBD eventsonline & in-person! 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. 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. 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. That strong performance comes even though the stock has fallen more than 50%. If you invested $10,000 with founder Elon Musk 10 years ago, your stake would be worth $2.1 million now. Founded in 1972, Money provides up-to-date news and educational resources to help people live richer and create lasting returns. Si vous souhaitez personnaliser vos choix, cliquez sur Grer les paramtres de confidentialit. 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. 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. That was firmly above its indicated range of $14 to $16 . So what happened that electrified investor returns, and can that translate to future return potential? If you'd invested 1,000 in Tesla Motors, Inc. (TSLA) on March 7, 2011, today that investment would be worth. In 2022, it delivered more than 1.31 million cars across its four current models Model S, Model 3, Model X and Model Y none of which existed in 2010. It has a 75% share of the EV market, and industry site Cox Automotive said Tesla sold more luxury vehicles in the U.S. in the fourth quarterthan Audi, BMW, Lexus, and Mercedes-Benz. Registration on or use of this site constitutes acceptance of our. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. It's already the fifth most valuable company in the S&P 500, ahead of Facebook (FB). *Real-time prices by Nasdaq Last Sale. It's also worth more than Ford, GM, Stellantis, and Hondacombined! However, Tesla is also one of the most shorted, or bet-against, names on Wall Street. That was firmly above its indicated range of $14. 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. 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. So, if you had invested $10,000 at this price, you would have acquired 588 shares. mesurer votre utilisation de nos sites et applications. 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. 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%). Though the company is now profitable from the sale of its core product (EVs), nearly $2 billion of its close to $10.7 billion in aggregate GAAP income over the past 15 months has come from RECs. Return calculations for what an average investor would have earned can't realistically assume a purchase price of $17 per share, as retail investors essentially had no way to buy stocks at their actual IPO price in 2010. 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. The other 96% collectively matched the return of U.S. Treasury bills. Accounting for the Tesla stock splits, this debut-day investor would hold 8,820 shares today. Making the world smarter, happier, and richer. 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.
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if you invested $10,000 in tesla in 2010