Home Latest News If You Invested $10,000 in Tesla in 2010, This Is How Much...

If You Invested $10,000 in Tesla in 2010, This Is How Much You Would Have Today – The Motley Fool

Ads

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.
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.
Motley Fool Issues Rare “All In” Buy Alert
You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More
Investors know that even though Tesla (TSLA 1.72%) 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.
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. 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.
Image source: Tesla.
Still, Tesla is the biggest, most advanced EV manufacturer. 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 quarter than Audi, BMW, Lexus, and Mercedes-Benz. 
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. That put the EV maker on the path to achieve Musk’s goal of delivering 20 million Teslas by 2030.
A Tesla Model 3. Image source: Tesla.
Tesla remains the most valuable auto stock on the market. 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. It’s also worth more than Ford, GM, Stellantis, and Honda combined!
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).
But revenue growth is still accelerating. Furthermore, it has turned profitable and earnings growth rates are expanding as well.
TSLA Revenue (TTM) Chart
TSLA Revenue (TTM) data by YCharts. TTM = trailing 12 months.
Even as Tesla confronts a growing number of competitors, its sales are ramping up. And it doesn’t spend any money on advertising — word of mouth has proved sufficient thus far.
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. 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.
A Tesla Model Y. Image source: Tesla.
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.
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. 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.
TSLA Chart
TSLA data by YCharts
It’s not likely Tesla will maintain that kind of growth. 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. Just about every manufacturer today has an EV on the road or in the works.
But there’s good reason to believe that Tesla will maintain its industry dominance for years to come, and even with its CEO’s manic personality, its stock should remain a great investment for just as long.

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
Market-beating stocks from our award-winning analyst team.
Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/20/2022.
Discounted offers are only available to new members. Stock Advisor list price is $199 per year.
Calculated by Time-Weighted Return since 2002. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns.

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.
Making the world smarter, happier, and richer.

Market data powered by Xignite.

Ads

source

Ads
Previous articleBest EE iPhone 13 deals in June 2022 – PhoneArena
Next articleDogecoin news: Why did Doge spike? Will it last? – Deseret News
She has been writing columns on consumer gadgets for over 2 years now. Her areas of interest include smartphones, tablets, mobile operating systems and apps. She holds an M.C.S. degree from Texas A&M University.