Tesla's greater than 26,000% gain since its IPO is the result of investors' faith in Elon Musk as a visionary as well. Like this story? The content That strong performance comes even though the stock has fallen more than 50% from its high in November 2021. Investors look to the precious metal amid market uncertainty. The magnitude of Tesla's boom is almost difficult to fathom. What about General Motors (GM) and Ford (F)? 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. If You Invested $10,000 in Tesla Stock at Its IPO, Here's How Much You Tesla's 2022 EPS of $4.07, growing 24% annually for five years, puts 2027 EPS at $11.93. Si vous souhaitez personnaliser vos choix, cliquez sur Grer les paramtres de confidentialit. But due to several aggressive stock splits in recent years, Tesla's long-term performance is even more impressive. You can see in the chart below that its free cash flow was negative that year. By comparison, a $1,000 investment in the S&P 500 would have earned a total return of just over 281% over the same period. 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. Here's Why. 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 the same time period, the S&P 500 index would have given you a 142.4% return. 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. 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. Helpful "tripwires" can guide your decision-making. BREAKING: Futures Steady, First Republic Fate In Focus. Making the world smarter, happier, and richer. Cost basis and return based on previous market day close. First, IPOs are infamously bad times to buy. 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. By signing in you agree with ourcommunications and usage terms. Could Government Drug-Price Negotiations Sound The Death Knell For Biotech Stocks? 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. And, in the past six months, its stock grew 220% and exceeded a share price of $700 for the first time ever. The Motley Fool has a disclosure policy. But even a conservative run through the math shows that it can still be a worthwhile investment. 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. Funding secured.". And because thestock market has historically increased in value over time, these low-cost funds are considered relatively safe, reliable investments. 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 . That's more than a 20,000% return. That strong performance comes even though the stock has fallen more than 50% from its . If You Invested $1000 in Tesla a Decade Ago, This is How Much - Nasdaq Tesla (NASDAQ: TSLA) became a publicly traded company in June 2010, and back then, electric vehicles were the whole of its business. Digg is an independent, advertiser-supported website and may receive compensation for some links to products and services throughout this website. 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. 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. If You Invested $10,000 in Tesla in 2010, This Is How Much You Would Have Today By Rich Duprey - May 27, 2022 at 4:55AM Key Points Tesla went public in 2010 at a price of $17 per share. 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 not a direct comparison, but it shows you how little respect Tesla's future-looking growth outlook is getting from investors. 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. 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. Bed Bath & Beyond Stock To Stop Trading On May 3 In Bankruptcy Proceeding; Are Meme Stocks A Buy Now? To make the world smarter, happier, and richer. Get Make It newsletters delivered to your inbox, Learn more about the world of CNBC Make It, 2023 CNBC LLC. However, an abundance of headwinds could end this EV manufacturer's incredible 12-year run. Making the world smarter, happier, and richer. Now, shares have rebounded to a forward P/E of 49. This means its split-adjusted IPO price is about $1.13 per share. The answer mostly lies with innovation and its CEO, Elon Musk. In other words, a $10,000 investment in Tesla's IPO in 2010 would now be worth a staggering $2,643,178. Over those 10 years, Tesla went from selling just the Roadster to offering the Models S, 3, X and Y. 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. If You Invested $10,000 in Tesla for Its IPO in 2010, Here's How Much If you're investing with a multiyear horizon, the EV maker's expected growth will whittle away at that valuation reasonably quickly. . As a reference, analysts call for earnings per share (EPS) to average 24% annual growth over the next three to five years. While Tesla has performed well overall, any individual stock can over- or underperform and past returns do not predict future results. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. While Tesla shares suffered due to Musk's Twitter activity, its stock has been on the rebound. This would give Tesla roughly 13.1% market share of EVs sold last year. 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. Five years ago, on Nov. 2, 2016, Tesla was trading at around $38 per share. Registration on or use of this site constitutes acceptance of our. Not many people. The electric vehicle market and alternative projects give Tesla more long-term growth potential. TTM = trailing 12 months. Instead of trying to beat the market, index funds allow you to keep up with it. By comparison, a $1,000 investment in the. In fact, the S&P 500's first-half performance was its worst in over a half-century. 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. That's already higher than what analysts think the stock should be worth in 12 months, or 910.94 a share. Tesla lost money on a net income basis every year since it was founded in 2003, until 2020. For everyone else, the hunt for the best stocks to buy now lives on. 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. It's also worth more than Ford, GM, Stellantis, and Hondacombined! 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. Artificial Intelligence Stocks: The 10 Best AI Companies. 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. Tesla went public on June 29, 2010 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. Want to learn more about investing? Long-term investors might prefer these low-cost Fidelity mutual funds as core portfolio holdings. Now a decade later the Tesla share price has skyrocketed up to $563 per share. entities, such as banks, credit card issuers or travel companies. Regardless of how long you've been putting your money to work in the stock market, it's been a challenging year. 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. Tesla is now showing it is a profit machine. That was firmly above its indicated range of $14 to $16 . Copyright 2023 Digg All Rights Reserved. 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. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. 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%. 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. If You Invested $10,000 in Tesla Stock in 2013, This Is How Much You 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. If you Invested $1000 10 Yrs Ago, what would you have? | eToro Second, it's just not easy to pick market-beating stocks. Weve curated the best of the Internet so you dont have to spend hours scrolling. A $10,000 investment in TSLA on the day of its IPO would be worth more than $1.16 million as of April 6. 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. 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. Tesla has been an immensely lucrative stock over its lifetime. Risk factors and time horizon matter when deciding where to put your money. Learn More. 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. Sean Williams has no position in any of the stocks mentioned. If You Invested $10,000 in Tesla in 2010, This Is How Much You Would Why Is Everyone Talking About Tesla Stock? Earnings growth will have a significant impact on investment returns as companies mature. It's a multi-millionaire maker. How Much $10,000 Invested In Tesla Stock 10 Years Ago Is Worth Now The same $10,000 put into the S&P 500 during that time grew just 274% to $37,376. Tesla's premium valuation is also a reflection of the company's competitive advantages and innovations becoming tangible. 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. Considering that these forward-looking innovations and new EV offerings are heavily built into Tesla's valuation, this is a big problem. That works out to a more than 68% average annual return. 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. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. It has also announced the Cybertruck and Tesla Semi, but has remained noncommittal about launch dates for both vehicles. And that's no mystery for growth investors who know what to look for. *Average returns of all recommendations since inception. Something else to take into consideration is that Tesla is still getting a boost from the sale of renewable energy credits (RECs). If You Invested $10,000 in Tesla Stock at Its IPO, Here's How - MSN Realtime quote and/or trade prices are not sourced from all markets. dvelopper et amliorer nos produits et services. 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. 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. The company is expected in 2022 to make $8.94 a share on an adjusted basis, up nearly 300% from 2020. 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. 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 (?) Shares of Tesla are up more than 44% just this past 12 months to 1,170 apiece. Tesla was founded in 2003 and went public in 2010. Futures Steady, First Republic Fate In Focus, following the 2008-2009 Financial Crisis bailouts, already higher than what analysts think the stock should be worth, Tesla Stock Vs. BYD Stock: Tesla Tries To Halt Slide; China EV Giant Races Into Buy Area, Top 5 China Stocks To Buy And Watch: Tesla EV Rival BYD In Buy Area. The Motley Fool has positions in and recommends Tesla. 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 . Tesla shares are up more than 140 percent over the past year. It only passed Toyota, now the second-largest automaker in terms of market cap, last year, but is now nearly $900 billion more valuable. 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. That works out to a more than 70% average annual return. 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. That's enough to make the stock an excellent buy if you can look to the next decade and beyond. So, don't miss out on the opportunity to grow your knowledge and wealth. The EV maker now owns a dominant position in the market with a 72% share. Investors May Not Have Seen the Worst of Tesla Stock. None rival Tesla's sheer wealth creation power. *Average returns of all recommendations since inception. Unlike the software industry, scaling in the capital-intensive auto industry is difficult and expensive. 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. Incredible. 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. In calculating returns, it's more practical to assume the early Tesla investor purchased shares at its closing price of $23.89. Tesla's stock closed just shy of $300 this past weekend. Over the trailing-10-year period, the S&P 500 has returned a hearty 183%, and that's not including dividends paid. 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. In fact, shares traded below those levels for the majority of normal trading hours, so even this price is somewhat conservative. If You Invested $1,000 in Tesla 5 Years Ago, What Would It Be Worth Now? Despite the growth already achieved, sales are still accelerating. And even including all charges, analysts think Tesla will make $7.18 a share or $8.7 billion. Investors looking for companies prepared to weather uncertain times can consider these financial stock picks. If you invested $10,000 with founder Elon Musk 10 years ago, your stake would be worth $2.1 million now. How Much Would $10,000 Invested in Tesla Stock at IPO Be Worth Today? To make the world smarter, happier, and richer. That isn't the whole story though. It's not likely Tesla will maintain that kind of growth. And Ford? If you invested back then when the initial public offering's price per share was just $17, your investment would have paid off. 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). 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. Tesla is the first automaker in over five decades to have successfully built itself from the ground up to mass production. If you're one of the lucky few to have held firm on Tesla throughout the years, kudos! Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. This Truck Giant Leaves Tesla Semi In The Dust As Breakout Nears. The stock's remarkable 116-fold return works out to a compound annual growth rate of 45.1% since inception. The other 96% collectively matched the return of U.S. Treasury bills. This Tesla Analyst Might Have A Solution That Tackles The Company's Mounting Model 3 Inventories. Over nine years and four months, that's an average annual. Investors May Not Have Seen the Worst of Tesla Stock. These companies stand to benefit from a generational shift in consumer behavior. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. A similar investment in the S&P 500 would have given you a 357.4% return. are thinking about getting into investing, Warren Buffett agrees that it's a smart idea. Change is afoot in the global semiconductor industry, and investors can ride the wave. 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. 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. 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. Tesla (NASDAQ: TSLA) stock has made investors wealthy over the years. 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. By signing up you agree with ourcommunications and usage terms. Get market updates, educational videos, webinars, and stock analysis. This would now be 8,820 shares. Go back a few more years and your return is even greater. Even having just one of these game-changing stocks in your portfolio for the past decade could have resulted in life-changing wealth. They're almost rounding errors. 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. Investors looking to participate in the growth of the metaverse can use these six ETFs for exposure. How Much Would $10,000 Invested in Tesla Stock at IPO Be Worth Today? The information and content are subject to change without notice. Here's how much a $10,000 investment in Tesla's IPO would be worth 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. It's a #millionaire maker.https://t.co/BJLaPeMWBx. Tesla recently closed out its 2022 fiscal year, delivering 1.31 million vehicles. Your accounts lets you Digg (upvote) stories, save stories to revisit later, and more. 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. Tesla remains the most valuable auto stock on the market. "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. A Tesla Model S charging. Amazon Dives, While First Solar Plunges 12% On Earnings Miss. 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. 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). (Getty Images). But the biggest red flag of all might be Elon Musk. This Is How Much You'd Have Made If You'd Invested $10,000 At Tesla's If you'd invested 1,000 in Tesla Motors, Inc. (TSLA) on March 7, 2011, today that investment would be worth. 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. But it doesn't hurt if you invest in game-changing companies, either. Musk and Tesla reached a settlement agreement with the SEC over the offending tweets. 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. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. 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. All Rights Reserved. That put the EV maker on the path to achieve Musk's goal of delivering 20 million Teslas by 2030. Had you invested $10,000 in Tesla stock back in 2019, your investment would be worth more than $90,000 today. Electric vehicle (EV) leader Tesla (TSLA 2.57%) wasn't always the household name and portfolio-changing stock it's viewed as today. Making the world smarter, happier, and richer. Here's Why. 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. 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. Ownership data provided by Refinitiv and Estimates data provided by FactSet. Learn how to trade stocks like a pro with just 3 email lessons! 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. Now that Tesla is profitable, looking at its potential runway to grow earnings will give clues to the stock's potential. 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.
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