The panic surrounding the COVID-19 pandemic reached a fever pitch in the first half of 2020, causing severe disruptions to lives and livelihoods.
In response, governments the whole world over implemented stimulus packages to offset the crisis, thus helping stop a brief but sharp recession and arguably worsening the debt crisis and helping kickstart both the meme stock craze, and the era’s cryptocurrency bull market.
Indeed, in the United States, many individuals opted to use the Coronavirus Aid, Relief, and Economic Security (CARES) Act $1,200 check to invest in the stock market, and Finbold examined what would have happened to the money if it had been used to buy the shares of Tesla Motors (NASDAQ: TSLA).
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Investing in Tesla
On April 13, 2020 – the day the CARES cheques started landing in people’s bank accounts – TSLA stock opened at $39.34 and closed notably higher at $43.40.
Assuming the hypothetical investor in Elon Musk’s electric vehicle (EV) maker was among the first to receive the money and made the purchase toward the end of the trading day, they would have been able to purchase approximately 28 Tesla shares for $1,200.
Considering that Tesla stock price today, at press time, stands at $174.77, the 28 shares purchased in April 2020 would be worth $4,893.56.
This means the investment would have grown 307.80% – by $3,693.56.
Tesla stock price chart
While the growth of a stimulus-check-enabled investment would have grown significantly between the COVID-19 lockdowns and June 5, 2024, holding the stock until press time would not have been the most lucrative option.
Indeed, selling the 28 shares at peaks above $400 in November 2021 would have turned the $1,200 stimulus check into nearly $11,500.
Additionally, while the 4-year difference in price is staggering, TSLA has been facing a significant stock market decline despite its integration of artificial intelligence (AI) technology and is 22.36% in the red in the last 12 months.
The EV maker’s performance in 2024 has been particularly lackluster as the stock is, despite a substantial rally in late April, down 29.75% year-to-date (YTD).
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
