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). And, in the past six months, its stock grew 220% and exceeded a share price of $700 for the first time ever. 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. And Ford? That works out to a more than 70% average annual return. If you're investing with a multiyear horizon, the EV maker's expected growth will whittle away at that valuation reasonably quickly. Image source: Tesla. Go back a few more years and your return is. The electric vehicle market and alternative projects give Tesla more long-term growth potential. Through the first six months of 2022, the company has delivered 564,743 EVs. (Getty Images). By signing up you agree with ourcommunications and usage terms. Top-notch innovation and a push to recurring profitability have made millionaires out of some early Tesla investors. A $10,000 investment in TSLA on the day of its IPO would be worth more than $1.16 million as of April 6. Tesla was founded in 2003 and went public 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. This Tesla Analyst Might Have A Solution That Tackles The Company's Mounting Model 3 Inventories. However, Tesla is also one of the most shorted, or bet-against, names on Wall Street. Past performance is not a reliable indicator of future results Tesla Learn More. These stocks outperformed the S&P 500 in 2008 and 2020. 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. Nvidia is the only S&P 500 stock anywhere close in that time with a 11,424% gain. That's more than a 20,000% return. Tesla stock plunged 65% in 2022 and hasn't fully recovered. So what happened that electrified investor returns, and can that translate to future return potential? Considering that these forward-looking innovations and new EV offerings are heavily built into Tesla's valuation, this is a big problem. 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. Even having just one of these game-changing stocks in your portfolio for the past decade could have resulted in life-changing wealth. It wasn't until 2020 that Tesla turned its first full-year profit. Here's Why. 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. And even including all charges, analysts think Tesla will make $7.18 a share or $8.7 billion. Here's Why. They're almost rounding errors. But this doesn't mean that the S&P is a worse investment. 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. 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 crossing that threshold to positive cash flow showed investors that the business was sustainable. All rights reserved. No, Tesla is not likely an overnight multibagger anymore, like it was in 2019. 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. 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. Target-date retirement funds aren't for everyone. You will get all news about Tesla and Elon Musk. It has also announced the Cybertruck and Tesla Semi, but has remained noncommittal about launch dates for both vehicles. 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. This Is How Much You'd Have Made If You'd Invested $10,000 At Tesla's Invest better with The Motley Fool. The content Investors looking for companies prepared to weather uncertain times can consider these financial stock picks. Here's Why. Tesla's 2022 EPS of $4.07, growing 24% annually for five years, puts 2027 EPS at $11.93. The magnitude of Tesla's boom is almost difficult to fathom. That put the EV maker on the path to achieve Musk's goal of delivering 20 million Teslas by 2030. That isn't the whole story though. Experts like CNBC's Jim Cramer have described the stock as going "up endlessly on nothing.". 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 that were all there was to the story, this investment would have walloped the wider market over the last 13 years, rising nearly sevenfold. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Enjoy your new account! In order to combat climate change, most developed countries are emphasizing clean-energy initiatives. 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. 2000-2023 Investor's Business Daily, LLC. So, if you had invested $10,000 at this price, you would have acquired 588 shares. 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. Over the same time period, the S&P 500 index would have given you a 142.4% return. In fact, shares traded below those levels for the majority of normal trading hours, so even this price is somewhat conservative. In short, RECs are inflating how profitable Tesla really is, which makes its nosebleed valuation that much worse. If You Invested $10,000 in Tesla Stock at Its IPO, Here's How Much You 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. 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. Over the trailing-10-year period, the S&P 500 has returned a hearty 183%, and that's not including dividends paid. 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 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. Accounting for the. The stock is still reasonably valued despite a recent bounce off its lows. The Motley Fool has positions in and recommends Tesla and Twitter. And if you invested in Tesla in 2010, when it made its initial public offering, that investment could have paid off, too. The Motley Fool has positions in and recommends Tesla. Furthermore, it has turned profitable and earnings growth rates are expanding as well. At the time of its IPO, Tesla was undergoing an ambitious experiment that CEO Elon Musk has since admitted was more likely to fail than succeed. Sign up for stock news with our Invested newsletter. Subscribe to our daily newsletter to get investing advice, rankings and stock market news. 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. 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. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. How Much $10,000 Invested In Tesla Stock 10 Years Ago Is Worth Now BREAKING: Futures Steady, First Republic Fate In Focus. As a reference, analysts call for earnings per share (EPS) to average 24% annual growth over the next three to five years. Tesla shares are up more than 140 percent over the past year. If You Invested $1,000 in Tesla 5 Years Ago, What Would It Be Worth Now?