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$1,000, 5 Years Later: How Much Would Tesla Stock Be Worth?

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$1,000, 5 Years Later: How Much Would Tesla Stock Be Worth?

Investors who have owned stocks since 2016 generally have experienced some big gains. In fact, the SPDR S&P 500 (NYSE: SPY) total return in the past five years is 122.3%. But there is no question some big-name stocks performed better than others along the way.

Tesla’s Huge Run: One company that has been a home run investment in the past five years is electric vehicle maker Tesla Inc (NASDAQ: TSLA). Tesla investors that bought back in 2016 and held on through some extremely challenging times have gotten a massive payoff in the past couple of years.

See also: How to Invest in Tesla Stock

Tesla and its CEO Elon Musk have gained a cult following of investors and supporters, and the company's valuation has exploded to more than $833 billion.

The past five years have been a bumpy ride for Tesla, including a number of missed deadlines and production targets, inconsistent profitability and even an SEC fraud settlement by Musk. But Tesla investors continue to believe in the company’s long-term disruptive potential, and the share price keeps rising.

At the beginning of 2016, Tesla shares were trading at around $220. The stock hit its low point of the past five years at $141.05 in early 2016 following two high-profile Wall Street downgrades from Morgan Stanley and Goldman Sachs.

The stock bounced back to new all-time highs above $300 per share by mid-2017. Throughout most of 2017, 2018 and 2019, Tesla shares traded mostly sideways in a wide range between about $180 and $390.

In August 2018, Musk made his infamous tweet: “Am considering taking Tesla private at $420. Funding secured.” At the time, Tesla shares were trading at around $380.

Tesla shares took off like a rocket in 2019, partly due to the company meeting the eligibility requirements to join the S&P 500 and partly because of a large short squeeze in the heavily shorted stock. Tesla made it as high as $2,318 in late 2020 before a five-to-one stock split dropped shares back down to as low as $329.88.

Related Link: Tesla And 9 Other Stocks That Burned Short Sellers The Most In 2020

Tesla In 2021, Beyond: Tesla was completely unphased by the COVID-19 pandemic sell-off, and its late-2020 addition to the S&P 500 once again pushed the stock to new all-time highs of $900.40 in early 2021. That price corresponds to $4,502 on a pre-split basis.

Tesla investors that bought and held on through a volatile five-year period turned a massive profit. In fact, $1,000 worth of Tesla stock bought in 2016 would be worth about $22,700 today.
Looking ahead, analysts are expecting a long-awaited correction in Tesla in the next 12 months. The average price target among the 34 analysts covering the stock is $512.50, suggesting 42% downside from current levels.

(Photo: Tesla)

 

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