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Here's How Much a $1000 Investment in Tesla Made 10 Years Ago Would Be Worth Today

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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.

FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.

What if you'd invested in Tesla (TSLA - Free Report) ten years ago? It may not have been easy to hold on to TSLA for all that time, but if you did, how much would your investment be worth today?

Tesla's Business In-Depth

With that in mind, let's take a look at Tesla's main business drivers.

Over the years, EV maker Tesla has evolved into a dynamic technology innovator. It has transformed the EV space much the same way as Amazon changed the retail landscape and Netflix revolutionized entertainment. Tesla is the market leader in battery-powered electric car sales in the United States, with roughly 70% market share. The company’s flagship Model 3 is the best-selling EV model in the United States. 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 its market cap crossing $1 trillion for the first time in October 2021.  The EV king’s market capitalization is more than the combined value of legacy automakers including Toyota, Volkswagen, Daimler, General Motors and Ford.

Over the years, Tesla has shifted from developing niche products for affluent buyers to making more affordable EVs for the masses. The firm’s three-pronged business model approach of direct sales, servicing, and charging its EVs sets it apart from other carmakers. Tesla, which is touted as the clean energy revolutionary automaker, is much more than just a car manufacturer. The firm also makes different kinds of technology like self-driving software, charging stations and battery development, et al. The technology titan has also made inroads into solar and energy storage business.
 
Tesla operates under two segments: Automotive and Energy Generation & Storage. While Automotive and Energy Generation/Storage operations accounted for 87.7% and 5.2% of the total sales in 2021, respectively, revenues from Services and Others constituted the rest. 

Presently, the Texas-based company produces and sells four fully electric vehicles: The Model S sedan, the Model X sport utility vehicle (“SUV”), Model 3 sedan and Model Y SUV. Tesla’s future product lineup includes Cybertruck, Semi truck and Roadster.

The firm manufactures its vehicles primarily at facilities located in Fremont, California, Lathrop, Tilburg, Netherlands. Tesla’s first, second and third Gigafactory are located in Nevada, New York and Shanghai, respectively. While production in these three factories is going on a full swing, production from Tesla's 4th and 5th Gigafactory in Berlin and Austin, respectively, commenced in the fourth-quarter of 2021.

Bottom Line

While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Tesla ten years ago, you're probably feeling pretty good about your investment today.

According to our calculations, a $1000 investment made in March 2012 would be worth $148,755.87, or a gain of 14,775.59%, as of March 25, 2022, and this return excludes dividends but includes price increases.

The S&P 500 rose 223.54% and the price of gold increased 13.37% over the same time frame in comparison.

Looking ahead, analysts are expecting more upside for TSLA.

Shares of Tesla have handily outperformed the industry over the past year. With Model 3 being its flagship vehicle, Tesla has established itself as a leader in the electric vehicle (EV) segment. Along with rising deliveries of Model 3, which is the bestselling EV in the world, Model Y is boosting Tesla’s prospects. With China being the biggest EV market, Tesla’s ambitious production plans in the country bode well. Robust production of Model 3 and Y from Shanghai gigafactory is a major positive catalyst. In addition to high automotive revenues, Tesla’s energy generation and storage revenues are also growing thanks to positive reception of Megapack and Powerwall products. Given the tailwinds, Tesla appears an attractive bet and is poised for stock price appreciation.

The stock is up 26.62% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 10 higher, for fiscal 2022. The consensus estimate has moved up as well.

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