Investing in Tesla back in 2014 could have yielded significant returns due to its groundbreaking EV technology, Elon Musk’s leadership, and its volatile stock performance. Over the past decade, early investors could have seen their investment grow by over 12 times, known as a “12-bagger.” However, these returns were not without their ups and downs, as Tesla’s stock experienced sharp declines along with its dramatic rises. It’s essential to remember that past performance does not guarantee future results, so it’s crucial not to assume that Tesla’s past gains will continue indefinitely.
With those considerations in mind, let’s examine how much $1,000 invested in Tesla in 2014 would be worth today and what analysts anticipate for the stock’s future performance.
How Much $1,000 Invested in Tesla in 2014 Would Be Worth Today
Investing $1,000 in Tesla back on March 3, 2014, when the stock was priced at $16.70 (adjusted for stock splits), would have bought you approximately 60 shares. Fast forward to March 3, 2024, and those 60 shares would be worth $12,158.40, based on Tesla’s closing price of $202.64.
This translates to an impressive annual rate of return of 28.342% over the past decade. While Tesla’s annual return far exceeds the long-term average of the overall stock market, some may find it somewhat modest compared to the stock’s extreme fluctuations. For instance, in 2020, Tesla’s shares skyrocketed by a remarkable 745%. However, just two years later, the stock experienced its worst year ever, plummeting by a staggering 65% in 2022 alone. Just like the broader stock market, Tesla’s performance has seen its share of highs and lows, albeit on a much larger scale.
Tesla 12-Month Analyst Stock Targets
Analysts currently hold a somewhat conservative outlook on Tesla stock, with the average price target for the next year standing at $211.58. This suggests a modest upside of only 4.4%. Given Tesla’s history of significant price swings, this may be interpreted as a sign of low confidence among analysts at the moment.
Tesla has faced challenges recently, including price cuts on its vehicles and a slower growth rate, which have dampened investor sentiment. However, the company has a track record of surprising the market and still holds substantial potential if it can execute on its ambitious plans. For instance, Tesla recently introduced its highly anticipated Cybertruck, and in 2025, it plans to launch its first mass-market vehicle, the Redwood, starting at just $25,000.
5-Year Tesla Price Targets
Long-term price targets for stocks, especially those as complex as Tesla, are not commonly provided by most analysts due to the multitude of variables involved. However, the few analysts who do offer five-year projections for Tesla often diverge significantly in their estimates, highlighting the stock’s volatile nature.
For instance, Wallet Investor predicts a five-year price target of $564.24, whereas Gov Capital is much more optimistic, forecasting a price of $2,326.138. Nevertheless, most prominent Wall Street firms refrain from making such long-term projections because they are inherently prone to inaccuracy, often varying widely from actual outcomes.
Is Tesla a Good Investment Now?
Indeed, the polarizing nature of Tesla has fueled a longstanding debate among investors. On one side, enthusiasts view Tesla as a revolutionary force poised to reshape entire industries, driven by its innovative technologies and visionary leadership. Conversely, skeptics remain cautious, citing concerns over the company’s ambitious goals, the unpredictable behavior of its CEO Elon Musk, and the increasing competition in the electric vehicle market.
Tesla’s history of volatility reflects this ongoing tug-of-war, with dramatic fluctuations in its stock price reflecting shifting sentiments and uncertainties surrounding its future trajectory. Whether Tesla represents a compelling investment opportunity at present hinges on one’s confidence in the company’s ability to surmount its current challenges and sustain its culture of innovation.
For those bullish on Tesla’s prospects, the recent decline in its stock price, exceeding 20% year-to-date, may present an attractive buying opportunity, potentially leading to further upside. However, for skeptics wary of the company’s ability to address real-world obstacles effectively, duplicating the stellar performance of the past decade may prove challenging. Ultimately, the decision to invest in Tesla boils down to individual assessments of its future prospects and risk tolerance.