Despite its reputation for dramatic price swings and breakthrough innovations, Tesla stock (NASDAQ: TSLA) has delivered mixed results for long-term investors.
The stock dropped 14% in a single day following the spat between President Trump and CEO Elon Musk, though it has since rebounded. Still, Tesla remains down 13% year-to-date as Wall Street shifts focus to the upcoming robotaxi rollout in Austin, scheduled between June 22 and June 28.
A $10,000 investment in Tesla in 2022
Tesla shares closed at $216.76 on June 17, 2022, according to historical data from Nasdaq. A $10,000 investment, therefore, would have purchased approximately 46.1 shares.
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The timing wasn’t ideal. Tesla had already tumbled from 2021 peaks as rising interest rates hammered growth stocks. Plus, Elon Musk’s $44 billion Twitter acquisition compounded investor concerns, forcing him to liquidate billions in Tesla holdings to fund the deal.
Tesla’s stock lost 65% of its value in 2022, making it one of the worst-performing stocks of the year despite achieving record deliveries.
How much would you have made?
Those 46.1 shares are now worth approximately $14,880.16, based on Tesla’s current price of $322.78 per share at press time. That’s a 48.8% return over three years, exactly $4,880.16 in profit.
Tesla significantly underperformed both the broader market and Nvidia (NASDAQ: NVDA) during this period.
Indeed, the same $10,000 invested in the S&P 500 (SPY) would have purchased 27.33 shares at $365.86 per share in June 2022. Those shares would now be worth $16,418 at SPY’s current price of $600.67, delivering a 64.2% return and $6,418 in profit.
Meanwhile, Nvidia investors who bought at the June 2022 low of $15.60 per share would have acquired 641 shares with their $10,000. Those 641 shares are now worth approximately $91,682, representing a staggering 816.8% return.
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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.
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