Depending on your financial goal, have you ever imagined how much Tesla stock you will need to achieve your dream and never have to work again?
The company is not only expanding its reach to other continents to increase its market share of EV vehicles but also taking on new projects in the AI industry with a plan to make autonomous driving and humanoid robots available to the market.
Investors’ view of Tesla stock is currently on two sides. While some believe that the company is already overpriced, others argue that the price is still good compared to what it could become in the near future. They believe the stock is still a good buy considering the growth potential, and the time is still right for investors to sow their seeds.
After gaining outstanding fame with its success in electric vehicles, Tesla has remained relentless in making a name for itself at the forefront of the industrial world.
Looking at how far the company has gone over the years, it’s a spectacular growth that has turned moles of investment into mountains. In 2010, the public offering for Tesla stock was pegged at 17 dollars. This small investment would have made a huge difference at the time of this blog.
Investors’ View of Tesla Stock
A source from CNBC shows that a 1000-dollar investment in Tesla a decade ago would be worth more than hundred and forty thousand dollars in 2022.
“If this same investment had been made in 2011, the investor’s Tesla portfolio would have grown beyond 204,000 dollars by 2021. If we compare this to S&P 500, the growth over the same time frame is just 357 per cent.”
This wide margin is clearly understandable, looking at the risk involved. S&P 500 is less risky compared to an individual growth stock like Tesla.
Even when it came nearer to the present, there was still a significant return on investment. Investing a thousand dollars in Tesla at the price of 38 dollars per share in Nov 2016 increased to more than 31,000 dollars by 2021, a whooping growth of 3025% in the space of five years.
Despite growing complaints and concern about the dip a few months before now, analysts still believe that there is still more upside movement in the stock a decade from now.
This can be attributed to the unique personality of the CEO and the commitment of the company to keeping the front pace in research and innovations that hold the future of human technology.
The world is anticipating most of the projects the company is currently working on. Tesla is working on projects like AI, Starlinks, Cybertruck, and humanoid Optimus and is set to bring them to the public. If they succeed ahead of everyone like they did with the EVs, this will surely boost their revenue and reflect positively on the stocks. The AI alone is enough to take the company’s stock beyond the roof.
We have witnessed this before. A decade ago, Tesla stock was traded below a hundred dollars, and gradually it doubled, tripled, and increased in multiple folds. If history is to repeat itself when the new projects are out, investors will see their investment double, triple, and grow in many folds in the next few years.
Gary black, a manager of a new ETF that made Tesla his number one holding, said in an interview that he still believes Tesla stock is still a bargain for investors who are willing to hold for the long term. He asserted that the EV company’s stock might appear overpriced on the outside, but if they can keep their market share as the EV market grows, we should expect bullish years ahead.
Many assumptions followed the idea of stock splitting, but the most apparent one close to the fact is to allow easier access for investors in the company. According to some analysts, this is a good time to invest in Tesla as there is hope for massive growth in the future.
As we always say on this platform, every investor needs to observe their due diligence before investing in any stock. You have to be sure that you understand where you’re putting your money. It’s imperative to study the company’s financial performance to know what holds for your investment. The annual report 10k and quarterly report 10q, where a public company like Tesla shares its financial health, are your best bet in this regard.
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Recommended books for further reading:
- Rich Dad’s Guide to Investing: What the Rich Invest in, That the Poor and the Middle Class Do Not!
- How to Make Money in Stocks: A Winning System In Good Times And Bad
- The Barefoot Investor: The Only Money Guide You’ll Ever Need
- Investing QuickStart Guide: The Simplified Beginner’s Guide to Successfully Navigating the Stock Market, Growing Your Wealth & Creating a Secure Financial Future
- The Five Rules Successful Stock Investing: Morningstar’s Guide to Building Wealth and Winning in the Market
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