When you break it down, investing in the stock market is quite simple: you buy a small piece of a company that you think will increase in value, and when the value has increased to a level you consider acceptable, sell you 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 that often makes its way into the news – sometimes for good and sometimes, much to the chagrin of investors. in case of illness. This piece will look at how Tesla has been doing over the past five years.
For more investing help, consider working with a financial advisor.
Tesla is a car company led by CEO Elon Musk, a billionaire who also runs the rocket company SpaceX, as well as an unofficial gig as a social media influencer and amateur political commentator. Tesla makes electric cars, currently offering four different models, all of which are fully electric.
The company differs from most car manufacturers in that they sell directly to consumers. The Tesla store you see at your local mall is owned by the company, but most car manufacturers sell their cars at wholesale prices to independent dealers, who sell the cars to retail customers for a profit.
Tesla also runs a network of superchargers, eclectic vehicle charging stations designed specifically for Tesla owners.
Tesla was founded in 2003 and went public in 2010. It is traded on the Nasdaq and is part of three different major indexes: The Nasdaq 100, the S&P 100 and the S&P 500.
When the market closed on September 14, 2022, Tesla had a market cap of more than $929 billion and was worth $302.61 a share.
Where Would You Be If You Had $1,000 Invested in a Tesla Five Years Ago?
Unfortunately, there is no time machine to allow you to go back in time and invest in Tesla in 2017, but after reading the next section you might want to. On September 1, 2017, one share of Tesla was selling for $23.69. At the start of trading on September 1, 2022, that same share opened at $272.58 – a gain of 1,150.61%. If you invested $1,000 in Tesla on September 1, 2017 and didn’t touch it until September 1, 2022, you could sell it for $11,506.12, giving you about $10,500 in profit.
That’s not the whole story though. While most of us would love to have made $10,000 by letting our money sit in the market for 10 years, someone in the above situation lost money by not selling sooner.
Tesla’s five-year high was $414.50. That represents a growth of 1,749.68%. If you had invested $1,000 on September 1, 2017 and sold at that high, you would have earned $17,496.83. That’s a total gain of almost $16,500 and an additional $6,000 compared to holding the stock to date.
How to invest in Tesla
Tesla’s growth over the past five years is not necessarily a sign that it will continue to grow; indeed, in recent months the stock has been dipping a bit, perhaps driven by Musk’s controversial statements and his current court fight over his abandoned attempt to buy Twitter.
That said, if you want to invest in Tesla now, there are a few ways you can do it. The simplest is to open a brokerage account with an online brokerage firm and buy it directly. You may have to pay a transaction fee, but you can buy Tesla shares at the current trading price directly from anyone who wants to sell them.
Another way is to invest in a mutual fund or exchange-traded fund (ETF) that buys Tesla shares. This will allow you to own a Tesla and give you portfolio diversification. You can even invest in a fund that focuses on the technology or transportation sectors, allowing you to invest in Tesla and other similar companies.
Finally, you can get a financial advisor to help you invest in Tesla. The adviser will make the actual purchase for you (perhaps through a third party broker) and can help you build a plan around the investment.
The Bottom Line
If you had invested $1,000 in Tesla five years ago, you would have about $11,500 right now. While you can’t be sure you’ll see similar results if you invest now, you can invest in Tesla today directly, through a fund or with the help of a financial advisor.
A financial advisor can help you invest your money the way you want and also guide you in the right direction. Finding a qualified financial advisor doesn’t have to be difficult. SmartAsset’s free tool matches you with up to three financial advisors serving your area, and you can interview your advisor at no cost to decide which one is right for you. If you’re ready to find an advisor to help you achieve your financial goals, get started now.
Want to see the other investment trajectory? Use SmartAsset’s free investment calculator.
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