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. Here's Why. The major indexes are near 2023 highs after a big shakeout. Tesla is infamous for unveiling a product (like the Cybertruck) and taking several years to bring it to market. Tesla: How much money you'd have if you invested $1,000 in 2017 - CNBC Sign up for Diggs daily morning newsletter to get the most interesting stories of the moment delivered directly to your inbox. 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 2019, it was reported that Tesla brought in $24.6 billion in revenue, which is a $2.8 billion increase from the year prior. Over those 10 years, Tesla went from selling just the Roadster to offering the Models S, 3, X and Y. Now a decade later the Tesla share price has skyrocketed up to $563 per share. The same $10,000 put into the S&P 500 during that time grew just 274% to $37,376. Despite the growth already achieved, sales are still accelerating. 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. 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. The new era of energy production is linked to old-school metals extraction. None rival Tesla's sheer wealth creation power. In other words, patience has truly been profitable. Justin Pope has no position in any of the stocks mentioned. Change is afoot in the global semiconductor industry, and investors can ride the wave. And investors had better hope Tesla hits these targets. Tesla (NASDAQ: TSLA) became a publicly traded company in June 2010, and back then, electric vehicles were the whole of its business. You can see in the chart below that its free cash flow was negative that year. That was firmly above its indicated range of $14 to $16 . 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. If You Invested $10,000 in Tesla for Its IPO in 2010, Here's How Much Plainly put, Tesla's incredible decade-plus rally has tracked the even more incredible growth of its underlying business. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Amazon Dives, While First Solar Plunges 12% On Earnings Miss. 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. Over the trailing-10-year period, the S&P 500 has returned a hearty 183%, and that's not including dividends paid. Had you invested $10,000 in Tesla stock back in 2019, your investment would be worth more than $90,000 today. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. 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. 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%). That strong performance comes even though the stock has fallen more than 50% from its high in November 2021. While Tesla shares suffered due to Musk's Twitter activity, its stock has been on the rebound. Comparative assessments and other editorial opinions are those of U.S. News Don't miss: If you invested $1,000 in Chipotle 10 years ago, here's how much money you'd have now. Investors May Not Have Seen the Worst of Tesla Stock. Get access to free IBD eventsonline & in-person! No, Tesla is not likely an overnight multibagger anymore, like it was in 2019. 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. 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. If You Invested $10,000 in Tesla Stock at Its IPO, Here's How Much You Electric vehicles giant Tesla Inc. (ticker: TSLA) is a household name today. If You Invested $1000 in Tesla a Decade Ago, This is How Much - Nasdaq In short, RECs are inflating how profitable Tesla really is, which makes its nosebleed valuation that much worse. Investors May Not Have Seen the Worst of Tesla Stock. You will get all news about Tesla and Elon Musk. And if you invested in Tesla in 2010, when it made its initial public offering, that investment could have paid off, too. 2000-2023 Investor's Business Daily, LLC. *Real-time prices by Nasdaq Last Sale. "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. So, if you had invested $10,000 at this price, you would have acquired 588 shares. 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 remains the most valuable auto stock on the market. If you invested $1,000 in Tesla in 2010, here's what you'd - CNBC 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. Tesla shares are up more than 140 percent over the past year. However, since its IPO, Tesla has undergone two forward stock splits. How Much Would $10,000 Invested in Tesla Stock at IPO Be Worth Today? Regardless of how long you've been putting your money to work in the stock market, it's been a challenging year. Investors May Not Have Seen the Worst of Tesla Stock. But due to several aggressive stock splits in recent years, Tesla's long-term performance is even more impressive. 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. Considering that these forward-looking innovations and new EV offerings are heavily built into Tesla's valuation, this is a big problem. After all, Coca-Colatrades at roughly half Tesla's P/E but is expected to grow earnings only a quarter as fast as Tesla. 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. Why Is Everyone Talking About Tesla Stock? The magnitude of Tesla's boom is almost difficult to fathom. The electric vehicle market and alternative projects give Tesla more long-term growth potential. (SecondSide/stock.adobe.com). If You Invested $10,000 in Tesla Stock at Its IPO, Here's How Much You The stock is still reasonably valued despite a recent bounce off its lows. As a reference, analysts call for earnings per share (EPS) to average 24% annual growth over the next three to five years. If you invested back then when the initial public offering's price per share was just $17, your investment would have paid off. 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. Risk factors and time horizon matter when deciding where to put your money. If you invested $10,000 with founder Elon Musk 10 years ago, your stake would be worth $1.8 million now. 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. It enacted a 5-for-1 split on Aug. 31, 2020, and recently completed a 3-for-1 split on Aug. 25, 2022. A $1,000 investment in the company would be worth more than $12,000. Tesla has been the top-performing S&P 500-listed stock over the past decade. 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. Furthermore, it has turned profitable and earnings growth rates are expanding as well. If you had invested in Tesla in 2011, you would have a five-figure return. In fact, shares traded below those levels for the majority of normal trading hours, so even this price is somewhat conservative. The Motley Fool has a disclosure policy. 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. 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. 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). Not many people. 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. Where Would You Be If You'd Invested $1,000 in Tesla Five Years Ago? It's a multi-millionaire maker. 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 Why. If You Invested $10,000 in Tesla Stock in 2013, This Is How Much You Would Have Today. 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. 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. How much would 10,000 invested in TESLA be worth today? 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. It's a #millionaire maker.https://t.co/BJLaPeMWBx. 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. Go back a few more years and your return is even greater. 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). Mass-producing electric vehicles and making them sexy and desirable was practically a pipe dream, and major automakers neglected the market opportunity, leaving an open lane for Tesla. There are many speculations as to why Tesla's stock jumped so much on Tuesday. That works out to a more than 68% average annual return. The information and content are subject to change without notice. Making the world smarter, happier, and richer. Still, Tesla is the biggest, most advanced EV manufacturer. The EV maker now owns a dominant position in the market with a 72% share. If You Invested $10,000 in Tesla in 2019, This Is How Much You Would Why Is Everyone Talking About Tesla Stock? This would now be 8,820 shares. 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. If you're one of the lucky few to have held firm on Tesla throughout the years, kudos! Over nine years and four months, that's an average annual. 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. are thinking about getting into investing, Warren Buffett agrees that it's a smart idea. Instead, the CEO is planning on requiring candidates to "pass a hardcore coding test" and have a "deep understanding" of artificial intelligence. 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. 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. 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. Investors should keep in mind that this return . dvelopper et amliorer nos produits et services. Copyright 2023 Digg All Rights Reserved. After the take-private tweets, Musk faced fraud charges from the SEC. Best Parent Student Loans: Parent PLUS and Private. Registration on or use of this site constitutes acceptance of our. Here's a snapshot of how the markets look now. It has also announced the Cybertruck and Tesla Semi, but has remained noncommittal about launch dates for both vehicles. That works out to a more than 70% average annual return. 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. 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 . 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. 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 . Get Make It newsletters delivered to your inbox, Learn more about the world of CNBC Make It, 2023 CNBC LLC. Even if the P/E compresses to 25, the resulting share price is $298, a 54% total return over five years. Helpful "tripwires" can guide your decision-making. Why Is Everyone Talking About Tesla Stock? Sign up now: Get smarter about your money and career with our weekly newsletter, Don't miss: Jay Leno on why he still works at 71: I don't want to be 'a rich guy that sits in the pool', Get Make It newsletters delivered to your inbox, Learn more about the world of CNBC Make It, 2023 CNBC LLC. For everyone else, the hunt for the best stocks to buy now lives on. The International Energy Agency said that there were 16.5 million EVs on the road as of 2021, but that could grow to 350 million by 2030, depending on how charging infrastructure develops and the availability of resources for batteries. (Getty Images). TSLA Performance vs. the. Nvidia is the only S&P 500 stock anywhere close in that time with a 11,424% gain. 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. How much a $1,000 investment in Tesla 10 years ago would be worth - CNBC If You Invested $10,000 in Tesla in 2019, This Is How Much You - MSN Nous, Yahoo, faisons partie de la famille de marques Yahoo. 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. Even as Tesla confronts a growing number of competitors, its sales are ramping up. Authors may own the stocks they discuss. Here's How Much Money You'd Make If You Bought $10,000 In Tesla - Digg Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Through the first six months of 2022, the company has delivered 564,743 EVs. In other words, a $10,000 investment in Tesla's IPO in 2010 would now be worth a staggering $2,643,178. If You Invested $1,000 In Tesla 10 Years Ago, Here's How Much You'd These companies stand to benefit from a generational shift in consumer behavior. 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. It's not likely Tesla will maintain that kind of growth. 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. 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. 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. Tesla went public on June 29, 2010 at $17 per share. If you'd invested 1,000 in Tesla Motors, Inc. (TSLA) on March 7, 2011, today that investment would be worth. If you're investing with a multiyear horizon, the EV maker's expected growth will whittle away at that valuation reasonably quickly. And it doesn't spend any money on advertising -- word of mouth has proved sufficient thus far. If You Invested $10,000 in Tesla Stock at Its IPO, Here's How - MSN Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Lastly, Tesla has pushed into the profit column on a recurring basis. How Much $10,000 Invested In Tesla Stock 10 Years Ago Is Worth Now 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. Despite this short-term pain, time has proved to be an incredible ally for investors.