It’s been an amazing decade-long ride for Tesla (TSLA) investors — literally better than any other stock. It’s a millionaire maker.
The consumer discretionary stock debuted on June 29, 2010, and it’s up a stunning 18,318% since then to a new high Friday of 880.02. 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.
If you invested $10,000 with founder Elon Musk in 2010, your stake would be worth $1.8 million now. That works out to a more than 63% average annual return. The same $10,000 put into the S&P 500 during that time grew just 267% to $36,732. That’s just 13% compounded annually.
Who’s better to bet on than Musk? Not many people. None rival Tesla’s sheer wealth creation power.
The $820 Billion Company In The S&P 500
The magnitude of Tesla’s boom is almost difficult to fathom.
Over the past roughly 10 years, Tesla’s market value soared $832 billion to hit $834 billion. It’s already the fifth most valuable company in the S&P 500, ahead of Facebook (FB).
And at its current value, Tesla is worth roughly 285% more than Toyota Motor (TM), making it the most valuable automaker in the world.
What about General Motors (GM) and Ford (F)? They’re almost rounding errors. Tesla is worth rough 10 times General Motors and Ford, combined.
And that’s no mystery for growth investors who know what to look for.
Shares of GM are up about 26% since being relisted in November 2010 following the 2008-2009 Financial Crisis bailouts. And Ford? Shares are down nearly 10% in the 10 years since Tesla went public.
What’s Next For Tesla? S&P 500 Bound?
Tesla’s stock is certainly on hyperdrive, explaining its strong 99 IBD Composite Rating.
Tesla is now showing it is a profit machine. Tesla lost money on a net income basis every year since it was founded in 2003, until last year.
Analysts think this is the year Tesla drives into the black and then some. The company is expected in 2020 to make $2.39 a share on an adjusted basis, up more than 5,000% from 2019. And even including all charges, analysts think Tesla will make $1.29 a share or $1.3 billion.
And investors had better hope Tesla hits these targets. Shares of Tesla are up more than 790% just this past 12 months to 880.02 apiece. That’s already higher than what analysts think the stock should be worth in 12 months.
With hopes this high, there’s little room for error.
Top Stocks Since Tesla’s IPO
|Company||Ticker||Index||Stock % Ch. Since Tesla IPO||Sector||$10,000 Investment 10-Years Ago Now Worth|
|Tesla||(TSLA)||S&P 500||18,318%||Consumer Discretionary||$1,841,817|
|Patrick Industries||(PATK)||S&P 600||7,693%||Consumer Discretionary||$779,287|
|Repligen||(RGEN)||S&P 400||6,536%||Health Care||$663,567|
|Lithia Motors||(LAD)||S&P 400||5,067%||Consumer Discretionary||$516,732|
|Nvidia||(NVDA)||S&P 500||4,968%||Information Technology||$506,746|
|NeoGenomics||(NEO)||S&P 600||3,965%||Health Care||$406,512|
|Align Technology||(ALGN)||S&P 500||3,727%||Health Care||$382,649|
Source: IBD, S&P Global Market Intelligence since June 29, 2010
Follow Matt Krantz on Twitter @mattkrantz
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