Tesla Return Calculator

If you invested $1,000 at Tesla's initial public offering in 2010, that stake could be worth well over $300,000 today (a more than 300-fold increase!). Tesla's stock price has skyrocketed over the past decade and a half. The company's growth from a niche electric vehicle maker to a dominant automotive and technology player fueled this exceptional return. (Our calculator accounts for Tesla's stock splits – like the 5-for-1 split in 2020 and 3-for-1 in 2022 – to give an accurate total ROI for such an investment.)

Tesla's returns have far outpaced the broader market. Over the last ten years, Tesla delivered an exponential rise in share price, whereas the S&P 500 (as tracked by the SPY index fund) saw steadier growth around ~10% annually on average. For example, a Tesla investment in 2013 would have grown many times over, vastly exceeding what the same money in an index fund would have gained. However, Tesla's stock has also been more volatile than the S&P 500, with larger swings along the way.

Stock splits don't change the total value of your holdings – they simply increase the number of shares you own while reducing the price per share. Tesla has split its stock multiple times (notably a 5-for-1 split in 2020 and a 3-for-1 split in 2022). Our calculator uses adjusted closing prices that account for these splits, so the returns shown assume you kept all the resulting shares. In other words, the ROI calculation for Tesla already factors in its stock splits to give a true picture of your investment's growth.

Tesla's stock performance has been driven by several key factors: its leadership in electric vehicle technology and production, expansion into new markets (like energy storage and solar), strong revenue growth, and Elon Musk's vision for sustainable transportation. Additionally, Tesla's inclusion in major stock indices (like the S&P 500 in 2020) brought in more institutional investors. The company's ability to scale production, reduce costs, and maintain technological advantages has been crucial to its stock's long-term appreciation.

Tesla's historical performance has been exceptional for long-term investors, with the stock delivering massive returns over the past decade. However, past performance doesn't guarantee future results. Tesla faces increasing competition in the electric vehicle space, regulatory challenges, and the inherent volatility of growth stocks. While Tesla has proven its ability to innovate and scale, investors should consider the company's high valuation, market competition, and the cyclical nature of the automotive industry. As with any investment, it's important to assess your risk tolerance and investment goals before investing in Tesla.