John Csiszar
·4 min read
Tesla is one of the most talked-about car companies on the planet. Thanks to its ground-breaking EV technology, its outspoken CEO Elon Musk and its volatile stock returns, Tesla is often the lead story in the financial news cycle. If you had jumped on the stock when it was still just a “story,” back in 2014, you could have earned a “12-bagger,” or more than 12x what you invested if you held it for the subsequent 10 years.
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But there are two important things to remember about those incredible returns. First, they came in fits and starts, with the stock falling sharply as often as it moved dramatically higher. Second, past performance is no guarantee of future results. There’s no telling exactly how Tesla will perform over the next decade, so you shouldn’t project that past 10 years of gains into the future.
With those caveats in mind, here’s a look at exactly how much $1,000 invested in Tesla in 2014 would be worth today, and what analysts feel about the stock going forward from here.
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How Much $1,000 Invested in Tesla in 2014 Would Be Worth Today
Back on Mar. 3, 2014, Tesla sold at what might seem like an unbelievably low price of $16.70, adjusted for stock splits. As of the market close on Mar. 1, 2024 (Mar. 3 was a Sunday), Tesla stood at $202.64.
This means that your $1,000 10 years ago — technically, $1,002 — would have bought 60 shares of Tesla. As of Mar. 3, 2024, those 60 shares of Tesla would be worth $12,158.40. That marks a 28.342% annual rate of return.
Although Tesla’s annual rate of return over the past decade is more than triple the long-term average of the stock market overall, it might seem a bit pedestrian to those who have followed the stock. In 2020, for example, Tesla shares shot up an incredible 745%. However, just two short years later, the stock had its worst year ever, falling a whopping 65% in 2022 alone. Just like the stock market has its ups and downs, so too does Tesla — albeit on a much grander scale.
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Tesla 12-Month Analyst Stock Targets
Analysts aren’t currently too bullish on Tesla stock. The average price target over the next year is just $211.58, implying only a 4.4% upside. Considering the huge moves the stock is capable of making, that might be interpreted as a low-confidence vote at present.
Of course, Tesla has been getting hit on all sides lately, with price cuts on its vehicles and a slower growth rate hurting investor sentiment. However, the company has surprised time and time again, and it still has plenty of potential if it delivers on all of its plans.
For example, Tesla recently released its Cybertruck, and in 2025, it will bring to market its first mass-market vehicle, called Redwood, designed to begin at just $25,000.
5-Year Tesla Price Targets
Most analysts don’t post long-term price targets for stocks, particularly those with as many variables associated with them as Tesla. Of the few that have a five-year target, the price estimates vary wildly, just one reminder of how Tesla has always been something of a “make-or-break” stock.
Wallet Investor, for example, has a five-year price target of $564.24, while Gov Capital is much more bullish, envisioning a price of $2,326.138. However, most major Wall Street firms don’t make these types of longer-term projections as by their very nature they tend to be inaccurate, sometimes wildly so.
Is Tesla a Good Investment Now?
There has long been a tug-of-war over Tesla shares, with some seeing it as a revolutionary company that will dominate the world while others worrying that its grand ambitions and controversial CEO — not to mention good old-fashioned competition — will limit its future potential.
This is part of the reason why Tesla shares have been so volatile historically. Whether or not Tesla is a good investment now depends on if you believe in the company’s ability to overcome its current challenges and continue to innovate.
If so, the stock will likely continue much higher, and its YTD decline of over 20% may prove to be a buying opportunity. But if the company continues to struggle with real-world issues, it may have trouble recreating the performance of the past decade.
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This article originally appeared on GOBankingRates.com: If You Invested $1,000 in Tesla Stock in 2014, How Much Would It Be Worth Now?
