Over the past roughly 10 years, Tesla's market value soared $1 trillion to hit $1.18 trillion. Electric vehicles giant Tesla Inc. (ticker: TSLA) is a household name today. 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. Investors look to the precious metal amid market uncertainty. 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. 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. 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). 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. Learn More. Weve curated the best of the Internet so you dont have to spend hours scrolling. This video will highlight just how much . All Rights Reserved. Incredible. 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. Something else to take into consideration is that Tesla is still getting a boost from the sale of renewable energy credits (RECs). That's enough to make the stock an excellent buy if you can look to the next decade and beyond. JPMorgan is among possible First Republic Bank bidders. Despite near-term financial sector pressure, value-minded investors should consider these funds for the long haul. Get Make It newsletters delivered to your inbox, Learn more about the world of CNBC Make It, 2023 CNBC LLC. 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. Despite Tesla's sudden spike, the company's faced past challenges that caused its market performance to falter. (SecondSide/stock.adobe.com). The Motley Fool has positions in and recommends Tesla. 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. The. Despite being a visionary, Musk has created all sorts of legal, financial, and operating headaches for the company he runs. At around $690 billion at the time of this writing, it is worth more than double as much as the next biggest carmaker, Toyota, which is worth $251 billion. Best Cathie Wood Stocks To Watch: Coinbase, Block, Roku, Zoom Video; Tesla Races Higher, Tesla Stock, 6 Other Tech Titans Are Responsible For 86% Of S&P 500's 2023 Performance, Dow Jones Reverses After Key Inflation Data. Five years ago, on Nov. 2, 2016, Tesla was trading at around $38 per share. On the same day, Musk also published a letter on Tesla's website explaining his thinking. 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. 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. TTM = trailing 12 months. Instead of trying to beat the market, index funds allow you to keep up with it. Considering that these forward-looking innovations and new EV offerings are heavily built into Tesla's valuation, this is a big problem. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. In short, RECs are inflating how profitable Tesla really is, which makes its nosebleed valuation that much worse. 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. Tesla made its initial public offering (IPO) on NASDAQ on June 29, 2010, with shares priced at $17. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Tesla's 2022 EPS of $4.07, growing 24% annually for five years, puts 2027 EPS at $11.93. Over those 10 years, Tesla went from selling just the Roadster to offering the Models S, 3, X and Y. If you had invested in Tesla in 2011, you would have a five-figure return. Sign up for free today. And if you invested in Tesla in 2010, when it made its initial public offering, that investment could have paid off, too. Early investors are still sitting pretty. Through the first six months of 2022, the company has delivered 564,743 EVs. Despite Tesla's massive stock growth, any individual stock can overperform or underperformandpast returns do not predict future results. The Motley Fool has a disclosure policy. 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. 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. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. 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). Subscribe to our daily newsletter to get investing advice, rankings and stock market news. are thinking about getting into investing, Warren Buffett agrees that it's a smart idea. *Average returns of all recommendations since inception. Tesla went public in 2010 at a price of $17 per share. It enacted a 5-for-1 split on Aug. 31, 2020, and recently completed a 3-for-1 split on Aug. 25, 2022. 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. Its current share price is hovering at around $950. If You Invested $10,000 in Tesla Stock in 2013, This Is How Much You Would Have Today. 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. Analysts think this is the year Tesla drives even further into the black. However, Tesla is also one of the most shorted, or bet-against, names on Wall Street. The magnitude of Tesla's boom is almost difficult to fathom. 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. In other words, patience has truly been profitable. Cost basis and return based on previous market day close. For a limited time, get 2 months of IBD Digital, Barrons and MarketWatch access for only $30. It faced this problem between 2017 and 2019 -- it needed to make enough Model 3s (its lowest-priced model) to turn a profit. The company has several irons in the fire, though investors must see how these opportunities develop over the coming years. 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. Instead, the CEO is planning on requiring candidates to "pass a hardcore coding test" and have a "deep understanding" of artificial intelligence. Experts like CNBC's Jim Cramer have described the stock as going "up endlessly on nothing.". Regardless of how long you've been putting your money to work in the stock market, it's been a challenging year. Tesla recently closed out its 2022 fiscal year, delivering 1.31 million vehicles. 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 (?) TSLA Revenue (TTM) data by YCharts. For some, that just means Tesla stock is vastly overvalued, and brings to mind an analyst's critique last year that said Tesla wasn't worth more than $150 a share (it currently trades north of $700 a share). At a market capitalization of roughly $600 billion, it's one of the 10 largest public companies in the U.S. That said, the stock's medium-term performance has been lackluster. There are many speculations as to why Tesla's stock jumped so much on Tuesday. By signing in you agree with ourcommunications and usage terms. *Average returns of all recommendations since inception. 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. It is traded on . 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. 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. 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. Here's Why. In my daily YouTube. dvelopper et amliorer nos produits et services. Past performance is not a reliable indicator of future results Tesla 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. Even if the P/E compresses to 25, the resulting share price is $298, a 54% total return over five years. Where Would You Be If You'd Invested $1,000 in Tesla Five Years Ago? 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. Still, Tesla is the biggest, most advanced EV manufacturer. 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. 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. The electric vehicle market and alternative projects give Tesla more long-term growth potential. Even as Tesla confronts a growing number of competitors, its sales are ramping up. For everyone else, the hunt for the best stocks to buy now lives on. 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. 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. afficher des publicits et des contenus personnaliss en fonction de vos profils de centres dintrt; mesurer lefficacit des publicits et contenus personnaliss; et. 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%. The company had its ups and downs over the years, facing the threat of bankruptcy as recently as between 2017 and 2019, when Tesla increased the production volume of its Model 3. Not many people. 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. 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. and have not been previously reviewed, approved or endorsed by any other 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. A $1,000 investment in the company would be worth more than $12,000. 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. 2000-2023 Investor's Business Daily, LLC. So what happened that electrified investor returns, and can that translate to future return potential? Tesla (NASDAQ: TSLA) stock has made investors wealthy over the years. If you invested $10,000 with founder Elon Musk 10 years ago, your stake would be worth $2.1 million now. That strong performance comes even though the stock has fallen more than 50% from its . 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. 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. Tesla delivered 224,900 vehicles in 2018, its first full year of Model 3 production. It's a multi-millionaire maker. 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. Now a decade later the Tesla share price has skyrocketed up to $563 per share. You will get all news about Tesla and Elon Musk. Learn More. 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. It's been an amazing decade-long ride for Tesla $TSLA investors literally better than any other S&P 500 #stock. However, an abundance of headwinds could end this EV manufacturer's incredible 12-year run. Over nine years and four months, that's an average annual. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. The same $10,000 put into the S&P 500 during that time grew just 272% to $37,115. A $10,000 investment in TSLA on the day of its IPO would be worth more than $1.16 million as of April 6. As a reference, analysts call for earnings per share (EPS) to average 24% annual growth over the next three to five years. Why Is Everyone Talking About Tesla Stock? 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. And even including all charges, analysts think Tesla will make $7.18 a share or $8.7 billion. 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. That strong performance comes even though the stock has fallen more than 50%. But even a conservative run through the math shows that it can still be a worthwhile investment. Second, it's just not easy to pick market-beating stocks. Earnings growth will have a significant impact on investment returns as companies mature. Comparative assessments and other editorial opinions are those of U.S. News 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. And because thestock market has historically increased in value over time, these low-cost funds are considered relatively safe, reliable investments. 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. 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. Nvidia is the only S&P 500 stock anywhere close in that time with a 11,424% gain. That's already higher than what analysts think the stock should be worth in 12 months, or 910.94 a share. All Rights Reserved. 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. 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. 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. 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 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. 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. 3:13 PM ET 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. Risk factors and time horizon matter when deciding where to put your money. In other words, a $10,000 investment in Tesla's IPO in 2010 would now be worth a staggering $2,643,178. 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 put the EV maker on the path to achieve Musk's goal of delivering 20 million Teslas by 2030. Making 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. on this page is accurate as of the posting date; however, some of our partner offers may have expired. Target-date retirement funds aren't for everyone. Accounting for the Tesla stock splits, this debut-day investor would hold 8,820 shares today. That strong performance comes even though the stock has fallen more than 50% from its high in November 2021. Now that Tesla is profitable, looking at its potential runway to grow earnings will give clues to the stock's potential. Now, shares have rebounded to a forward P/E of 49. Tesla stock plunged 65% in 2022 and hasn't fully recovered. These companies stand to benefit from a generational shift in consumer behavior. Your accounts lets you Digg (upvote) stories, save stories to revisit later, and more. No, Tesla is not likely an overnight multibagger anymore, like it was in 2019. *Average returns of all recommendations since inception. On Monday, upon news of rental company Hertz making a huge purchase for their fleet, Tesla's stock became valued at a record $1,023.59. Here's Why. Tesla shares are up more than 140 percent over the past year. 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. Realtime quote and/or trade prices are not sourced from all markets. Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. In calculating returns, it's more practical to assume the early Tesla investor purchased shares at its closing price of $23.89. Registration on or use of this site constitutes acceptance of our. The major indexes are near 2023 highs after a big shakeout. Electric vehicle (EV) leader Tesla (TSLA 2.57%) wasn't always the household name and portfolio-changing stock it's viewed as today. Furthermore, it has turned profitable and earnings growth rates are expanding as well. Tesla went public on June 29, 2010 at $17 per share. 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. The content Making the world smarter, happier, and richer. Want to learn more about investing? 1 strategy for starting a lucrative business, stock market has historically increased in value over time. Investors should keep in mind that this return . Investors looking to participate in the growth of the metaverse can use these six ETFs for exposure. Learn how you can make more money with IBD's investing tools, top-performing stock lists, and educational content. Is Elon Musk Listening? Why Is Everyone Talking About Tesla Stock? And Ford? Change is afoot in the global semiconductor industry, and investors can ride the wave. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Read our disclaimer. 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. 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. It wasn't until 2020 that Tesla turned its first full-year profit. Artificial Intelligence Stocks: The 10 Best AI Companies. Had you invested $10,000 in Tesla stock back in 2019, your investment would be worth more than $90,000 today. But revenue growth is still accelerating. Get access to free IBD eventsonline & in-person! With the "crypto winter" talk dying down and digital assets heating up, here are the top cryptocurrencies to buy now. Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD Digital for only $20! 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. 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. And that's no mystery for growth investors who know what to look for. The Motley Fool has a disclosure policy. Si vous souhaitez personnaliser vos choix, cliquez sur Grer les paramtres de confidentialit. This Truck Giant Leaves Tesla Semi In The Dust As Breakout Nears. That's just 14% compounded annually. The stock is still reasonably valued despite a recent bounce off its lows. Funding secured.". Top-notch innovation and a push to recurring profitability have made millionaires out of some early Tesla investors. Tesla is now showing it is a profit machine. mesurer votre utilisation de nos sites et applications. These mutual funds from Charles Schwab offer a combination of broad diversification and low fees. (Getty Images). 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. 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. In my daily YouTube video series, I'll be covering latest tesla news and providing insights on how to make smart investment decisions. 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. Cost basis and return based on previous market day close. Just about every manufacturer today has an EV on the road or in the works. Musk and Tesla reached a settlement agreement with the SEC over the offending tweets. A $1,000 investment then would have grown 3,025% and be worth around $31,286 as of Wednesday morning. Making the world smarter, happier, and richer. This includes clean-energy transportation for consumers and businesses. By signing up you agree with ourcommunications and usage terms. Accounting for this split, Tesla'sIPO price was roughly $1.13 per share. Tesla (NASDAQ: TSLA) became a publicly traded company in June 2010, and back then, electric vehicles were the whole of its business. Authors may own the stocks they discuss. First, IPOs are infamously bad times to buy. Invest better with The Motley Fool. Bond funds have some distinct advantages over holding individual bonds. Best Parent Student Loans: Parent PLUS and Private. 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. While there's no denying that Tesla's naysayers have been decisively wrong up to this point (myself included), there appear to be more lingering headwinds than catalysts for Tesla at its current market cap of $939 billion. Key Details. It's already the fifth most valuable company in the S&P 500, ahead of Facebook (FB). The Motley Fool has a disclosure policy. Thanks for creating an account! 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 . Here's Why. The new era of energy production is linked to old-school metals extraction. If you're one of the lucky few to have held firm on Tesla throughout the years, kudos!
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