If You'd Invested $10,000 in Tesla Stock 5 Years Ago, Here's How Much You'd Have Today
CEO Elon Musk's antics notwithstanding, Tesla (NASDAQ: TSLA) has been one of the most phenomenal stocks in recent years. The company was founded in 2003, debuted its first sports car Roadster in 2008, and launched its first all-electric sedan Model S in 2012. There's been no looking back since then. Tesla was the world's largest electric-vehicle (EV) company before China's BYD recently beat it at its game, although the two companies continue to fight closely for the crown.
Tesla's torrid growth, backed by its first-mover advantage in the EV industry, has been reflected in its stock price performance. If you'd invested $10,000 in Tesla stock five years ago, you'd be sitting on nearly $138,600 now. That's a stunning multibagger stock.
The past six years have been transformative for Tesla. Its revenue grew nearly 7x, and by turning its first profit in 2020, Tesla silenced critics who argued that EVs can't be a profitable business. The company sold 1.81 million EVs in 2023 and earned GAAP net income of $15 billion in the year.
The company believes its next growth phase could be equally big, driven more by futuristic technologies other than EVs.
Why Tesla stock could still give big returns
A global slowdown in demand for EVs has hit Tesla lately, forcing the company to slash the prices of its cars multiple times earlier this year and cut down its workforce. Musk remains undeterred, and a lot's happening at Tesla right now.
On the operational front, Tesla recently delivered its first all-electric pickup Cybertruck and is ramping up production, expanding its gigafactory in Texas, and building a megafactory in China to produce megapack batteries.
On the innovation side, Tesla is investing heavily in artificial intelligence (AI), automating its factories with its humanoid robot Optimus, which it eventually plans to sell in the market. It's also working on a supercomputer, advancing its full self-driving technologies, and preparing to unveil its much-awaited robotaxi on Oct. 10.
Like it or not, Musk remains a visionary, and Tesla is a potential multibagger stock if you can patiently buy and hold.
Should you invest $1,000 in Tesla right now?
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Neha Chamaria has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends BYD Company and Tesla. The Motley Fool has a disclosure policy.
