If You Invested $10,000 in Tesla Stock 10 Years Ago, Here's How Much You'd Have Today

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Abstract generation in progress

With its direct-to-consumer sales strategy, intense focus on product innovation, and premium positioning, Tesla (TSLA 3.25%) has become a globally recognized automotive enterprise. And long-term investors have reaped the rewards, as the company’s $1.2 trillion market cap highlights.

If you had invested $10,000 in this electric vehicle (EV) stock 10 years ago, here’s how much you’d have today.

Image source: The Motley Fool.

Tesla shares have climbed 2,430% in the past decade (as of March 19). This monster gain turned a $10,000 starting investment into over $253,000 today. Despite the stock trading 22% off its peak, the performance has been impressive, crushing the overall market. Shareholders deserve this return, as they’ve had to endure significant drawdowns on multiple occasions.

Revenue growth, without a doubt, was the key tailwind. Tesla’s sales rose from $4 billion in 2015 to $95 billion last year, as it ramped up production and deliveries of its EVs.

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NASDAQ: TSLA

Tesla

Today’s Change

(-3.25%) $-12.34

Current Price

$367.96

Key Data Points

Market Cap

$1.4T

Day’s Range

$364.46 - $379.89

52wk Range

$214.25 - $498.83

Volume

79M

Avg Vol

61M

Gross Margin

18.03%

Looking out at the next 10 years, it’s almost a virtual certainty that Tesla isn’t going to generate the same kind of return it did in the last decade. The stock’s extremely rich price-to-earnings ratio of 353 implies very rosy expectations about what the future will bring. The market is banking on autonomous driving and robotics leading to incredible financial success, which is not guaranteed.

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