if you invested $10,000 in tesla in 2010

After all, Coca-Colatrades at roughly half Tesla's P/E but is expected to grow earnings only a quarter as fast as Tesla. There are many speculations as to why Tesla's stock jumped so much on Tuesday. Had you invested $10,000 in Tesla stock back in 2019, your investment would be worth more than $90,000 today. 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. Even as Tesla confronts a growing number of competitors, its sales are ramping up. Here's how much a $10,000 investment in Tesla's IPO would be worth now. 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. 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. Experts like CNBC's Jim Cramer have described the stock as going "up endlessly on nothing.". But even a conservative run through the math shows that it can still be a worthwhile investment. For those of you keeping score at home, this equates to a 26,332% increase in value in just over 12 years. Learn More. The S&P 500 makes it easy to invest in some of the best stocks in America. 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. Tesla is the first automaker in over five decades to have successfully built itself from the ground up to mass production. The same $10,000 put into the S&P 500 during that time grew just 274% to $37,376. And, in the past six months, its stock grew 220% and exceeded a share price of $700 for the first time ever. So, don't miss out on the opportunity to grow your knowledge and wealth. This means its split-adjusted IPO price is about $1.13 per share. You will get all news about Tesla and Elon Musk. 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. 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. 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. That proof of profitability had much to do with the stock's lucrative run from 2019 to the present day. Cost basis and return based on previous market day close. And it doesn't spend any money on advertising -- word of mouth has proved sufficient thus far. Had you invested $10,000 in Tesla stock back in 2019, your investment would be worth more than $90,000 today. A $1,000 investment in the company would be worth more than $12,000. Still, Tesla is the biggest, most advanced EV manufacturer. Unfortunately, there is no time machine to allow you to go back in time and invest in Tesla. Founded in 1972, Money provides up-to-date news and educational resources to help people live richer and create lasting returns. So what happened that electrified investor returns, and can that translate to future return potential? Get Make It newsletters delivered to your inbox, Learn more about the world of CNBC Make It, 2023 CNBC LLC. 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. If you invested back then when the initial public offering's price per share was just $17, your investment would have paid off. To add to the above, EVs are a no-brainer growth opportunity over the coming decades. 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 enacted a 5-for-1 split on Aug. 31, 2020, and recently completed a 3-for-1 split on Aug. 25, 2022. mesurer votre utilisation de nos sites et applications. Learn More. Here's a snapshot of how the markets look now. Bond funds have some distinct advantages over holding individual bonds. A $10,000 investment in TSLA on the day of its IPO would be worth more than $1.16 million as of April 6. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. 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. Even with the company contending with semiconductor chip shortages and China's zero-COVID policies, which have led to general parts shortages and production slowdowns at its Shanghai Gigafactory, Tesla looks to be firmly on track to surpass 1 million EVs produced and delivered this year. Why Is Everyone Talking About Tesla Stock? 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. They're almost rounding errors. 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. TTM = trailing 12 months. The EV opportunity is massive, and Tesla should play a big part in its future. 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? Key Details. 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. In fact, the S&P 500's first-half performance was its worst in over a half-century. A Tesla Model S charging. Now that Tesla is profitable, looking at its potential runway to grow earnings will give clues to the stock's potential. It's a multi-millionaire maker. Invest better with The Motley Fool. 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. Despite this short-term pain, time has proved to be an incredible ally for investors. 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. *Average returns of all recommendations since inception. All Rights Reserved. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. Your accounts lets you Digg (upvote) stories, save stories to revisit later, and more. By comparison, a $1,000 investment in the. 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. If you invested $10,000 with founder Elon Musk 10 years ago, your stake would be worth $1.8 million now. 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. Accounting for the Tesla stock splits, this debut-day investor would hold 8,820 shares today. The stock's remarkable 116-fold return works out to a compound annual growth rate of 45.1% since inception. With the "crypto winter" talk dying down and digital assets heating up, here are the top cryptocurrencies to buy now. Tesla is worth roughly seven times General Motors and Ford, combined. Who's better to bet on than Musk? Investors looking to participate in the growth of the metaverse can use these six ETFs for exposure. Want to learn more about investing? Weve curated the best of the Internet so you dont have to spend hours scrolling. 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. Investors look to the precious metal amid market uncertainty. "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. Instead, the CEO is planning on requiring candidates to "pass a hardcore coding test" and have a "deep understanding" of artificial intelligence. It's not a direct comparison, but it shows you how little respect Tesla's future-looking growth outlook is getting from investors. 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. Over the same time, the vaunted S&P 500 has grown at an annualized rate of 11.3%. That's just 14% compounded annually. Long-term investors might prefer these low-cost Fidelity mutual funds as core portfolio holdings. dvelopper et amliorer nos produits et services. The most heavily shorted stocks on Wall Street include three electric vehicle-related names, Shares of this Swedish EV maker could nearly double, Cantor Fitzgerald says. Global demographics are signaling a gray wave over the next decade that could boost consumer spending in key areas. Not many people. As a reminder, you can change your profile and email settings in your profile. It's a #millionaire maker.https://t.co/BJLaPeMWBx. Digg is an independent, advertiser-supported website and may receive compensation for some links to products and services throughout this website. Go back a few more years and your return is even greater. Registration on or use of this site constitutes acceptance of our. 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%. It has also announced the Cybertruck and Tesla Semi, but has remained noncommittal about launch dates for both vehicles. To make the most of its first-mover advantage, Tesla had to rapidly grow its production capacity, which it did at a prodigious pace: In 2010, the company delivered less than 1,600 Tesla Roadsters, which was then its only vehicle. Investors May Not Have Seen the Worst of Tesla Stock. are thinking about getting into investing, Warren Buffett agrees that it's a smart idea. Learn how to trade stocks like a pro with just 3 email lessons! In my daily YouTube. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Tesla lost money on a net income basis every year since it was founded in 2003, until 2020. In August 2018, Tesla's CEO, Elon Musk, sparked controversy with a now infamous tweet that said: "Am considering taking Tesla private at $420. The company has several irons in the fire, though investors must see how these opportunities develop over the coming years. Thanks for creating an account! Tesla (NASDAQ: TSLA) stock has made investors wealthy over the years. That strong performance comes even though the stock has fallen more than 50% from its high in November 2021. 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. Nvidia is the only S&P 500 stock anywhere close in that time with a 11,424% gain. As a result of the settlement, Musk and Tesla each paid a $20 million fine, and Musk was forced to resign from his chairman role on Tesla's board. That was firmly above its indicated range of $14 to $16 . Invest better with The Motley Fool. Tesla's stock closed just shy of $300 this past weekend. 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. *Real-time prices by Nasdaq Last Sale. Had you invested $10,000 in Tesla stock back in 2019, your investment would be worth more than $90,000 today. JPMorgan is among possible First Republic Bank bidders. Go back a few more years and your return is. 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. It is traded on . 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. Why Is Everyone Talking About Tesla Stock? 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. Earnings growth will have a significant impact on investment returns as companies mature. Early investors are still sitting pretty. Although patience has paid off handsomely for long-term investors in Tesla, this top performer looks to be headed for a breakdown. In my daily YouTube video series, I'll be covering latest tesla news and providing insights on how to make smart investment decisions. 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. In particular, nearly every projection offered by Musk for when a new EV or technology will become available fails to come to fruition. On the same day, Musk also published a letter on Tesla's website explaining his thinking. If you had invested in Tesla in 2011, you would have a five-figure return. Over nine years and four months, that's an average annual. 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. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Five years ago, on Nov. 2, 2016, Tesla was trading at around $38 per share. Justin Pope has no position in any of the stocks mentioned. 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. 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 May 2018 paper from Hendrik Bessembinder at Arizona State University found that between 1926 and 2016, the best-performing 4% of public stocks accounted for the entire net gain in the U.S. stock market. Tesla hit the public markets in June 2010, priced at $17 per share. 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. 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. Change is afoot in the global semiconductor industry, and investors can ride the wave. 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. Si vous souhaitez personnaliser vos choix, cliquez sur Grer les paramtres de confidentialit. Enjoy your new account! 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. Copyright 2023 Digg All Rights Reserved. Despite near-term financial sector pressure, value-minded investors should consider these funds for the long haul. It faced this problem between 2017 and 2019 -- it needed to make enough Model 3s (its lowest-priced model) to turn a profit. 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. 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. As a potential recession looms, learn what risk factors to watch for and how to optimize your portfolio. You can see in the chart below that its free cash flow was negative that year. That strong performance comes even though the stock has fallen more than 50%. 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. Accounting for this split, Tesla'sIPO price was roughly $1.13 per share. Tesla has been an immensely lucrative stock over its lifetime. Plainly put, Tesla's incredible decade-plus rally has tracked the even more incredible growth of its underlying business. Shares of Tesla are up more than 44% just this past 12 months to 1,170 apiece. 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. Electric vehicles giant Tesla Inc. (ticker: TSLA) is a household name today. And even including all charges, analysts think Tesla will make $7.18 a share or $8.7 billion. There have been two Tesla stock splits in its corporate history: To compare apples to apples, this means that the cost basis of the initial purchase price should be divided by 15, as one share of Tesla stock in 2010 would have turned into 15 shares by 2023.On a split-adjusted basis then, the closing price of Tesla stock on June 29, 2010 was $1.59. Tesla (NASDAQ: TSLA) became a publicly traded company in June 2010, and back then, electric vehicles were the whole of its business. Nous, Yahoo, faisons partie de la famille de marques Yahoo. Tesla remains the most valuable auto stock on the market. Image source: Tesla. Vous pouvez modifier vos choix tout moment en cliquant sur le lien Tableau de bord sur la vie prive prsent sur nos sites et dans nos applications. 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. 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. *Average returns of all recommendations since inception. That's enough to make the stock an excellent buy if you can look to the next decade and beyond. Something else to take into consideration is that Tesla is still getting a boost from the sale of renewable energy credits (RECs). For a limited time, get 2 months of IBD Digital, Barrons and MarketWatch access for only $30. Considering that these forward-looking innovations and new EV offerings are heavily built into Tesla's valuation, this is a big problem. Here's Why. Risk factors and time horizon matter when deciding where to put your money. 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. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Just about every manufacturer today has an EV on the road or in the works. The answer mostly lies with innovation and its CEO, Elon Musk. This would now be 8,820 shares. (Getty Images). It's been an amazing more than decade-long ride for Tesla (TSLA) investors literally better than any other S&P 500 stock. 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. 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). Past performance is not a reliable indicator of future results Tesla 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. In order to combat climate change, most developed countries are emphasizing clean-energy initiatives. But as deliveries increased, you can see how free cash flow turned positive and kept climbing with deliveries. Sign up for free today. Why Is Everyone Talking About Tesla Stock? 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. Why Is Everyone Talking About Tesla Stock? 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. 1 strategy for starting a lucrative business, stock market has historically increased in value over time. TSLA Revenue (TTM) data by YCharts. 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The last dozen-plus years have also seen the company diversify into areas like insurance, charging infrastructure, and energy storage and generation. Making the world smarter, happier, and richer. Accounting for the. 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 Motley Fool has positions in and recommends Tesla. 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. Subscribe to our daily newsletter to get investing advice, rankings and stock market news. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. 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. 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, time has proved to be an incredible ally for investors, firmly on track to surpass 1 million EVs produced and delivered, generally accepted accounting principles (GAAP), biggest red flag of all might be Elon Musk, Copyright, Trademark and Patent Information.

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