Tesla Inc (NASDAQ: TSLA) is one of the most famous share investments in the world. This fame has almost certainly been fueled by the legendary run Tesla stock went on between 2019 and 2022. The rather prominent public profile of its CEO Elon Musk would also be a factor.
But Tesla has many other tailwinds behind it too. It is an undisputed leader in the electric vehicle and battery space, with its popular cars now topping electric vehicle sales around the world. Its innovative approach to vehicle design and technology has won the company legions of global fans.
And Tesla continues to expand into previously unexplored territory. It has begun rolling out its Tesla Semi freight truck and plans to launch its highly-anticipated ‘cybertruck’ later this year.
Tesla is also a leading provider of household and commercial-scale storage batteries and solar technology.
There’s little doubt that government policies encouraging emissions-free travel and power generation are also powerful driving forces behind this company’s success. Policies such as electric vehicle subsidies will probably remain in place for decades, which will undoubtedly help the company’s growth.
But let’s talk about Tesla stock. How lucrative have the company’s shares been over the past few years? And has the horror 2022 Tesla suffered dented investors’ longer-term returns?
How much has Tesla stock made investors over the past three years?
Let’s assume an investor bought US$5,000 worth of Tesla shares three years ago. That would have been in January of 2020. So back on Monday, 21 January 2020, Tesla stock closed at a split-adjusted US$36.48 per share.
If an investor dropped US$5,000 on Tesla shares back then at this price, they would have received 137 shares of the company, with a couple of dollars left over.
As of last night’s (our time) market close over in the United States, Tesla stock was fetching US$127.17 each. Thus, our 137 shares would, right now, have a value of US$17,422.30. That represents a return of close to 250% over just three years.
So Tesla has still been a real winner for longer-term investors, despite the woes of 2022. Saying that, the company has had its fair share of both ups and downs recently.
Back in late 2021, Tesla stock reached a high of US$414.50. At that point, our 137 shares would have been worth a whopping US$56,786.50.
Who knows, maybe Tesla will get back there one day. But we shall have to see what happens in 2023 first.
