If You Invested $1,000 In Tesla Stock One Year Ago, Here's How Much You'd Have Now

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Investors who have owned stocks in the last year have generally experienced some big gains. In fact, the SPDR S&P 500 SPY total return over the last 12 months is 61.9%. But there is no question some big-name stocks performed better than others along the way.

Tesla’s Big Run: One company that has been a good investment in the last year has been electric vehicle giant Tesla Inc TSLA.

Tesla and its controversial CEO Elon Musk have gained a cult following of investors and supporters in recent years. Despite controlling less than 5% market share of the global auto industry, Tesla’s market cap has exploded to above $590 billion, making it the most valuable auto company in the world.

The biggest bullish catalyst for Tesla stock in 2020 was the stock’s addition to the S&P 500 index in December. Tesla joined the index as its sixth-largest member and by far the largest market cap company ever to join the S&P 500. Tesla has previously not qualified for admission to the S&P 500 due to the company’s lack of profitability.

Fortunately for Tesla investors, the COVID-19 pandemic didn’t negatively impact the auto industry nearly as much as experts had initially feared.

In 2019, Tesla generated a net income loss of $862 million on $24.5 billion in revenue. In 2020, Tesla’s net income jumped to positive $721 million, while its revenue grew to $31.5 billion.

At the beginning of 2020, Tesla shares were trading at around $425. When March kicked off, the stock was up to $710 despite news of the coronavirus spreading in China, prompting concerns about a U.S. pandemic. 

Tesla ultimately bottomed at $350.50 during the pandemic-driven March sell-off. Fortunately for Tesla investors, the dip did not last long.

By June, Tesla shares were back at new all-time highs above $1,000, with the stock as high as $2,318.49 in August prior to a five-to-one stock split.

Related Link: If You Invested $1,000 In Ford Stock One Year Ago, Here's How Much You'd Have Now

Tesla In 2021, Beyond: The stock eventually made it back up to new split-adjusted highs of $900.40 in February 2021.

In recent days, the stock has pulled back from its highs, settling back down to $623.

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Still, Tesla investors who bought one year ago and held on have generated a big return on their investment. In fact, $1,000 in Tesla stock bought March 25, 2020, would be worth about $6,240 today.

Looking ahead, analysts are expecting Tesla’s stock to take charge in the next 12 months. The average price target among the 30 analysts covering the stock is $755.50, suggesting 22% upside from current levels.

Related content: Benzinga's Full Stock Split Calendar

(Photo Tesla)

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Posted In: EducationTop StoriesGeneralelectric vehiclesElon MuskEVs
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