If You Invested $1,000 In Tesla Stock One Year Ago, Here's How Much You'd Have Now
Investors who have owned stocks in the last year have generally experienced some big gains. In fact, the SPDR S&P 500 (NYSE: SPY) total return over the last 12 months is 61.9%. But there is no question some big-name stocks performed better than others along the way.
Tesla’s Big Run: One company that has been a good investment in the last year has been electric vehicle giant Tesla Inc (NASDAQ: TSLA).
Tesla and its controversial CEO Elon Musk have gained a cult following of investors and supporters in recent years. Despite controlling less than 5% market share of the global auto industry, Tesla’s market cap has exploded to above $590 billion, making it the most valuable auto company in the world.
The biggest bullish catalyst for Tesla stock in 2020 was the stock’s addition to the S&P 500 index in December. Tesla joined the index as its sixth-largest member and by far the largest market cap company ever to join the S&P 500. Tesla has previously not qualified for admission to the S&P 500 due to the company’s lack of profitability.
Fortunately for Tesla investors, the COVID-19 pandemic didn’t negatively impact the auto industry nearly as much as experts had initially feared.
In 2019, Tesla generated a net income loss of $862 million on $24.5 billion in revenue. In 2020, Tesla’s net income jumped to positive $721 million, while its revenue grew to $31.5 billion.
At the beginning of 2020, Tesla shares were trading at around $425. When March kicked off, the stock was up to $710 despite news of the coronavirus spreading in China, prompting concerns about a U.S. pandemic.
Tesla ultimately bottomed at $350.50 during the pandemic-driven March sell-off. Fortunately for Tesla investors, the dip did not last long.
By June, Tesla shares were back at new all-time highs above $1,000, with the stock as high as $2,318.49 in August prior to a five-to-one stock split.
Related Link: If You Invested ,000 In Ford Stock One Year Ago, Here's How Much You'd Have Now
Tesla In 2021, Beyond: The stock eventually made it back up to new split-adjusted highs of $900.40 in February 2021.
In recent days, the stock has pulled back from its highs, settling back down to $623.
Still, Tesla investors who bought one year ago and held on have generated a big return on their investment. In fact, $1,000 in Tesla stock bought March 25, 2020, would be worth about $6,240 today.
Looking ahead, analysts are expecting Tesla’s stock to take charge in the next 12 months. The average price target among the 30 analysts covering the stock is $755.50, suggesting 22% upside from current levels.
(Photo Tesla)
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