if you invested $10,000 in tesla in 2010

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. In fact, the S&P 500's first-half performance was its worst in over a half-century. They're almost rounding errors. 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. 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. Over the trailing-10-year period, the S&P 500 has returned a hearty 183%, and that's not including dividends paid. Top-notch innovation and a push to recurring profitability have made millionaires out of some early Tesla investors. That works out to a more than 70% average annual return. Unfortunately, there is no time machine to allow you to go back in time and invest in Tesla. The company has several irons in the fire, though investors must see how these opportunities develop over the coming years. Musk and Tesla reached a settlement agreement with the SEC over the offending tweets. Tesla (NASDAQ: TSLA) became a publicly traded company in June 2010, and back then, electric vehicles were the whole of its business. Sean Williams has no position in any of the stocks mentioned. In other words, a $10,000 investment in Tesla's IPO in 2010 would now be worth a staggering $2,643,178. But due to several aggressive stock splits in recent years, Tesla's long-term performance is even more impressive. Sign up for stock news with our Invested newsletter. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. The stock's remarkable 116-fold return works out to a compound annual growth rate of 45.1% since inception. This Truck Giant Leaves Tesla Semi In The Dust As Breakout Nears. No, Tesla is not likely an overnight multibagger anymore, like it was in 2019. Don't miss: If you invested $1,000 in Chipotle 10 years ago, here's how much money you'd have now. The same $10,000 put into the S&P 500 during that time grew just 274% to $37,376. 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. This includes clean-energy transportation for consumers and businesses. If you invested $10,000 with founder Elon Musk 10 years ago, your stake would be worth $2.1 million now. 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. 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. 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 . Who's better to bet on than Musk? 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. 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. 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. It enacted a 5-for-1 split on Aug. 31, 2020, and recently completed a 3-for-1 split on Aug. 25, 2022. Its current share price is hovering at around $950. Funding secured.". Risk factors and time horizon matter when deciding where to put your money. However, since its IPO, Tesla has undergone two forward stock splits. Amazon Dives, While First Solar Plunges 12% On Earnings Miss. However, Tesla is also one of the most shorted, or bet-against, names on Wall Street. Not many people. That put the EV maker on the path to achieve Musk's goal of delivering 20 million Teslas by 2030. All Rights Reserved. Learn how you can make more money with IBD's investing tools, top-performing stock lists, and educational content. Accounting for the. Helpful "tripwires" can guide your decision-making. Tesla is now showing it is a profit machine. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. 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. 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 EV maker now owns a dominant position in the market with a 72% share. For those of you keeping score at home, this equates to a 26,332% increase in value in just over 12 years. Earnings growth will have a significant impact on investment returns as companies mature. In August 2018, Tesla's CEO, Elon Musk, sparked controversy with a now infamous tweet that said: "Am considering taking Tesla private at $420. All Rights Reserved. The Motley Fool has a disclosure policy. Why Is Everyone Talking About Tesla Stock? For a limited time, get 2 months of IBD Digital, Barrons and MarketWatch access for only $30. Here's how much a $10,000 investment in Tesla's IPO would be worth now. Consumer staples stocks are the workhorses of any investment portfolio. 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. While Tesla shares suffered due to Musk's Twitter activity, its stock has been on the rebound. 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. This Tesla Analyst Might Have A Solution That Tackles The Company's Mounting Model 3 Inventories. Making the world smarter, happier, and richer. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. All rights reserved. TSLA Performance vs. the. 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. If you had invested $10,000 with Tesla 10 years ago, your stake would be worth $1.8 million now. A young and growing business often loses money, but investors will eventually demand profits to know that the business is sustainable. 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. 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. And investors had better hope Tesla hits these targets. Bed Bath & Beyond Stock To Stop Trading On May 3 In Bankruptcy Proceeding; Are Meme Stocks A Buy Now? Investors May Not Have Seen the Worst of Tesla Stock. Analysts think this is the year Tesla drives even further into the black. Tesla went public in 2010 at a price of $17 per share. It's also worth more than Ford, GM, Stellantis, and Hondacombined! Justin Pope has no position in any of the stocks mentioned. 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. Tesla has done better than any other S&P 500 stock in fact, it's worth approximately seven times General Motors and Ford put together. But the biggest red flag of all might be Elon Musk. dvelopper et amliorer nos produits et services. Elon Musk Cut Off OpenAI's Access To Twitter's Data, Report Reveals. 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. Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD Digital for only $20! Second, it's just not easy to pick market-beating stocks. Tesla (NASDAQ: TSLA) became a publicly traded company in June 2010, and back then, electric vehicles were the whole of its business. 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. Change is afoot in the global semiconductor industry, and investors can ride the wave. Subscribe to CNBC Make It on YouTube! By signing up you agree with ourcommunications and usage terms. 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 multi-millionaire maker. 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. Offers may be subject to change without notice. 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. Despite this short-term pain, time has proved to be an incredible ally for investors. Digg is an independent, advertiser-supported website and may receive compensation for some links to products and services throughout this website. 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. 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. and have not been previously reviewed, approved or endorsed by any other Tesla has been the top-performing S&P 500-listed stock over the past decade. Still, Tesla is the biggest, most advanced EV manufacturer. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. 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. 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. With hopes this high, there's little room for error. 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. When Tesla had its initial public offering (IPO) on June 29, 2010, the company priced the 13.3 million shares it was offering at $17, which was above the $14 to $16 expected IPO range. 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. 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 means even next-generation automakers like Tesla could see reduced demand for EVs. 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. 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. Yet among the 500 companies that make up the index, 20 of them have returned approximately 1,100% or higher over the trailing decade. Shares are up just 94% in the past 10 years. Tags: investing, stock market, Tesla Motors, Elon Musk, Toyota, IPOs, money, revenue, profits, technology, electric vehicles. In my daily YouTube video series, I'll be covering latest tesla news and providing insights on how to make smart investment decisions. Tesla's stock closed just shy of $300 this past weekend. Comparative assessments and other editorial opinions are those of U.S. News 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. That works out to a more than 68% average annual return. 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. But this doesn't mean that the S&P is a worse investment. This would give Tesla roughly 13.1% market share of EVs sold last year. The. Investors look to the precious metal amid market uncertainty. These stocks outperformed the S&P 500 in 2008 and 2020. Could Government Drug-Price Negotiations Sound The Death Knell For Biotech Stocks? Artificial Intelligence Stocks: The 10 Best AI Companies. 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. 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. This means its split-adjusted IPO price is about $1.13 per share. Why Is Everyone Talking About Tesla Stock? If you'd invested 1,000 in Tesla Motors, Inc. (TSLA) on March 7, 2011, today that investment would be worth. 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. Nvidia is the only S&P 500 stock anywhere close in that time with a 11,424% gain. If You Invested $10,000 in Tesla Stock in 2013, This Is How Much You Would Have Today. A $1,000 investment then would have grown 3,025% and be worth around $31,286 as of Wednesday morning. Founded in 1972, Money provides up-to-date news and educational resources to help people live richer and create lasting returns. Analysts say these cheap stocks have plenty of upside. Tesla remains the most valuable auto stock on the market. Like this story? Now that Tesla is profitable, looking at its potential runway to grow earnings will give clues to the stock's potential. (SecondSide/stock.adobe.com). 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. JPMorgan is among possible First Republic Bank bidders. Best Parent Student Loans: Parent PLUS and Private. That's already an enormous performance gulf, but those differences become even more magnified over time. Here's Why. It is traded on . Go back a few more years and your return is. As a reference, analysts call for earnings per share (EPS) to average 24% annual growth over the next three to five years. The Motley Fool recommends the following options: long January 2024 $47.50 calls on Coca-Cola. Want to learn more about investing? But it doesn't hurt if you invest in game-changing companies, either. The last dozen-plus years have also seen the company diversify into areas like insurance, charging infrastructure, and energy storage and generation. Enjoy your new account! Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. 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. TSLA Revenue (TTM) data by YCharts. That's enough to make the stock an excellent buy if you can look to the next decade and beyond. In calculating returns, it's more practical to assume the early Tesla investor purchased shares at its closing price of $23.89. Early investors are still sitting pretty. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. 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. The belief among a number of Wall Street analysts is that Tesla won't concede these first-mover advantages. 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. The Motley Fool has a disclosure policy. 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. 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. If You Invested $10,000 in Tesla Stock at Its IPO, Here's . After all, Coca-Colatrades at roughly half Tesla's P/E but is expected to grow earnings only a quarter as fast as Tesla. Si vous souhaitez personnaliser vos choix, cliquez sur Grer les paramtres de confidentialit. Tesla lost money on a net income basis every year since it was founded in 2003, until 2020. Plainly put, Tesla's incredible decade-plus rally has tracked the even more incredible growth of its underlying business. That strong performance comes even though the stock has fallen more than 50%. Long-term investors might prefer these low-cost Fidelity mutual funds as core portfolio holdings. So, don't miss out on the opportunity to grow your knowledge and wealth. The answer mostly lies with innovation and its CEO, Elon Musk. 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. The information and content are subject to change without notice. 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. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. 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. Even if the P/E compresses to 25, the resulting share price is $298, a 54% total return over five years. Note that Tesla was added to the S&P 500 in December 2020. 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. Sign up for free today. Tesla recently closed out its 2022 fiscal year, delivering 1.31 million vehicles. That's just 14% compounded annually. Tesla made its initial public offering (IPO) on NASDAQ on June 29, 2010, with shares priced at $17. 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. Thanks for creating an account! mesurer votre utilisation de nos sites et applications. 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. Instead of trying to beat the market, index funds allow you to keep up with it. What about General Motors (GM) and Ford (F)? Investors May Not Have Seen the Worst of Tesla Stock. If you invested $10,000 with founder Elon Musk 10 years ago, your stake would be worth $1.8 million now. Over the same time period, the S&P 500 index would have given you a 142.4% return. Target-date retirement funds aren't for everyone. The story for long-term shareholders, however, is much different. Tesla has been an immensely lucrative stock over its lifetime. 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. Investors looking for companies prepared to weather uncertain times can consider these financial stock picks. Here's Why. That proof of profitability had much to do with the stock's lucrative run from 2019 to the present day. Get access to free IBD eventsonline & in-person! Learn More. Even as Tesla confronts a growing number of competitors, its sales are ramping up. If you invested back then when the initial public offering's price per share was just $17, your investment would have paid off. A Tesla Model S charging. Go back a few more years and your return is even greater. In other words, patience has truly been profitable. Past performance is not a reliable indicator of future results Tesla 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. on this page is accurate as of the posting date; however, some of our partner offers may have expired. Cost basis and return based on previous market day close. A similar investment in the S&P 500 would have given you a 357.4% return. 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. It faced this problem between 2017 and 2019 -- it needed to make enough Model 3s (its lowest-priced model) to turn a profit. Tesla is the first automaker in over five decades to have successfully built itself from the ground up to mass production. You can see in the chart below that its free cash flow was negative that year. Invest better with The Motley Fool. The Motley Fool has positions in and recommends Tesla. 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. 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). It wasn't until 2020 that Tesla turned its first full-year profit. are thinking about getting into investing, Warren Buffett agrees that it's a smart idea. However, an abundance of headwinds could end this EV manufacturer's incredible 12-year run. Tesla delivered 224,900 vehicles in 2018, its first full year of Model 3 production. The Motley Fool has positions in and recommends Tesla. Subscribe to our daily newsletter to get investing advice, rankings and stock market news. But revenue growth is still accelerating. 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. The Motley Fool has positions in and recommends Tesla and Twitter. A $10,000 investment in TSLA on the day of its IPO would be worth more than $1.16 million as of April 6. 2000-2023 Investor's Business Daily, LLC. Even having just one of these game-changing stocks in your portfolio for the past decade could have resulted in life-changing wealth. 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. This video will highlight just how much . Furthermore, it has turned profitable and earnings growth rates are expanding as well. Registration on or use of this site constitutes acceptance of our. If you're investing with a multiyear horizon, the EV maker's expected growth will whittle away at that valuation reasonably quickly. Over the same time, the vaunted S&P 500 has grown at an annualized rate of 11.3%. The stock is still reasonably valued despite a recent bounce off its lows. Here's a snapshot of how the markets look now. Why Is Everyone Talking About Tesla Stock? Despite being a visionary, Musk has created all sorts of legal, financial, and operating headaches for the company he runs. To make the world smarter, happier, and richer. But even a conservative run through the math shows that it can still be a worthwhile investment. Investors May Not Have Seen the Worst of Tesla Stock. 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. It's a #millionaire maker.https://t.co/BJLaPeMWBx. 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. Copyright 2023 Digg All Rights Reserved. he doesn't care if you have a high school degree. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Even though most of us would love to have made $10,000 by simply letting . Had you invested $10,000 in Tesla stock back in 2019, your investment would be worth more than $90,000 today. Bond funds have some distinct advantages over holding individual bonds. 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? 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. Invest better with The Motley Fool. Global demographics are signaling a gray wave over the next decade that could boost consumer spending in key areas. afficher des publicits et des contenus personnaliss en fonction de vos profils de centres dintrt; mesurer lefficacit des publicits et contenus personnaliss; et. Invest better with The Motley Fool. Learn More. 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. But that's still a solid buying opportunity for long-term investors. 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.

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