investing in tesla hypothetical
When you break it down, investing in the stock market is pretty simple: you buy a small piece of a company you think will increase in value, and when the value has grown to a level you deem acceptable, you sell your share, taking the increased value as proceeds. One company that is popular among retail investors is Tesla, Elon Musk’s Texas-based electric car company which frequently makes its way into the news — sometimes for good and sometimes, much to the chagrin of investors, for ill. This piece will take a look at how Tesla has fared over the past five years.
For more help investing, consider working with a financial advisor.
Tesla is a car company led by CEO Elon Musk, a billionaire who also runs rocket company SpaceX, in addition to an unofficial side gig as a social media provocateur and amateur political commentator. Tesla makes electric cars, currently offering four different models, all of which are fully electric.
The company is different from most auto manufacturers in that they sell directly to consumers. That Tesla store you see at your local mall is actually owned by the company, whereas most auto manufacturers sell their cares at wholesale prices to independent dealerships, who in turn sell the cars to retail customers at a profit.
Tesla also runs a network of superchargers, eclectic vehicle charging stations designed specifically for Tesla owners.
As of the market closing on Sept. 14, 2022, Tesla had a market cap of more than $929 billion and a single share was worth $302.61.
Where Would You Be If You’d Invested $1,000 in Tesla Five Years Ago?
investing in tesla hypothetical
Unfortunately, there is no time machine to allow you to go back in time and invest in Tesla in 2017, but after you read this next section you might wish there was. On Sept. 1, 2017, one share of Tesla was selling for $23.69. At the start of trading on Sept. 1, 2022, that same share opened at $272.58 – a gain of 1,150.61%. If you’d invested $1,000 in Tesla on Sept. 1, 2017 and not touched it till Sept. 1, 2022, you could have sold it for $11,506.12, giving you around $10,500 in profit.
That isn’t the whole story though. Even though most of us would love to have made $10,000 by simply letting our money sit in the market for 10 years, someone in the above situation actually lost out on money by not selling earlier.
Tesla’s high in the past five years was $414.50. That represents growth of 1,749.68%. Had you invested $1,000 on Sept. 1, 2017 and sold at that high, you’d have earned $17,496,83. That’s total earnings of nearly $16,500 and an extra $6,000 compared with holding the stock until now.
How to Invest in Tesla
Tesla’s growth over the past five years is not necessarily a sign that it will continue to grow; in fact, recent months have seen the stock dive a bit, possibly driven by Musk’s controversial statements and his current court fight over his abandoned attempt to purchase Twitter.
That said, if you want to invest in Tesla now, there are a number of ways you can go about it. The simplest is to open a brokerage account with an online brokerage firm and buy it directly. You may have to pay a fee for the transaction, but you can buy shares of Tesla at the current trading price directly from anyone trying to sell it.
Another way is to invest in a mutual fund or exchange-traded fund (ETF) that purchases Tesla shares. This will let you own Tesla while also giving you built in portfolio diversification. You can even invest in a fund that focuses on the tech or transportation sectors, letting you invest in Tesla and other similar companies.
Finally, you can get a financial advisor to help you invest in Tesla. The advisor will make the actual purchase for you (possibly through a third-party broker) and can help you build a plan around the investment.
The Bottom Line
investing in tesla hypothetical
If you’d invested $1,000 in Tesla five years ago, you’d have around $11,500 right now. Even though you can’t assure yourself that you’ll see similar results if you invest now, you can invest in Tesla today either directly, through a fund or with the help of financial advisor.
A financial advisor can help you invest your money as you want while also guiding you in the right direction. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Want to see the trajectory of another investment? Use SmartAsset’s free investment calculator.
Photo credit: ©iStock.com/Diego Thomazini, ©iStock.com/Darren415, ©iStock.com/AsiaVision
The post If You Invested $1,000 in Tesla 5 Years Ago, What Would It Be Worth Now? appeared first on SmartAsset Blog.
Dividends paid to investors by corporations come in two kinds – ordinary and qualified – and the difference has a large effect on the taxes that will be owed. Ordinary dividends are taxed as ordinary income, meaning a investor must … Continue reading → The post Ordinary Dividends vs. Qualified Dividends appeared first on SmartAsset Blog.
(Reuters) -U.S. chip designer Qualcomm Inc on Thursday said its automotive business “pipeline” increased to $30 billion, up more than $10 billion since its third quarter results were announced in late July. The jump in future business was thanks to its Snapdragon Digital Chassis product used by car makers and their suppliers, Qualcomm said at its Automotive Investor Day. The Snapdragon Digital Chassis can provide assisted and autonomous driving technology, as well as in-car infotainment and cloud connectivity.
The Wall Street Journal
The “limitless” friendship between China and Russia notwithstanding, President Xi Jinping of China appears to be at least somewhat miffed at President Vladimir Putin of Russia. In theory, over the long run, Russia’s isolation from its major oil and gas customers in the West could be a boon for China—particularly with regards to natural gas, since the two nations have already agreed to expand the existing pipeline network between them. All this comes as China’s economy is already struggling with a punishing property downturn and deeply discouraged consumers.
While inflation and market volatility loom over the U.S. economy, a new survey by Principal Financial Group shows that 59% of respondents plan to save more than $20,000 for retirement this year alone. Let’s break down what the survey says … Continue reading → The post 6 Tips Americans Follow to Maximize Retirement Savings: Are You Keeping Pace? appeared first on SmartAsset Blog.
Democrats and the White House are trying to flip the script on the midterms, turning an election that is traditionally a referendum on the party in power into a referendum on the party out of power. President Biden and other Democrats have in recent weeks focused squarely on making November a choice election between their…
Arguing that the state has failed to meet funding obligations and other commitments to Florida A&M University, six students on Thursday filed a potential class-action lawsuit accusing state officials of “intentional discrimination” against the historically Black school.
The fault in some Tesla vehicles’ windows could pose a safety risk of a “pinching injury” to the driver or passenger, per a NHTSA document.
Bitcoin has reached bottom and could go back above $60,000 ‘some time in the next 4 years,’ says MicroStrategy’s Michael Saylor
Michael Saylor, chairman and co-founder of MicroStrategy Inc. (MSTR) said bitcoin could go back to $68,990, its peak reached in November “sometime in the next four years,” and could reach $500,000 in the next decade if it matches the market cap of gold. MicroStrategy is also making developments on the Lightning network, a payment protocol layered on the Bitcoin network, Saylor told MarketWatch Editor-in-Chief Mark DeCambre at the Best New Ideas in Money Festival Wednesday. “We’re building Lightning wallets that can be deployed to enterprises, say that you can give it (bitcoin) to 1,000 of your employees in an afternoon, or lightning walls where you can wrap your websites with a layer of digital energy to protect it from cybersecurity attacks,” Saylor said.