It's been an amazing more than decade-long ride for Tesla (TSLA) investors — literally better than any other S&P 500 stock. It's a multi-millionaire maker.
XThe consumer discretionary stock debuted on June 29, 2010, and it's up a stunning 24,389.7% since then to a recent high Monday of 1170.12. Tesla outperformed every single large stock currently in S&P 500 plus all those on the midsized S&P 400 and S&P 600 small caps on a percentage basis, shows an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith. Nvidia is the only S&P 500 stock anywhere close in that time with a 11,424% gain.
If you invested $10,000 with founder Elon Musk 10 years ago, your stake would be worth $2.1 million now. That works out to a more than 70% average annual return. The same $10,000 put into the S&P 500 during that time grew just 274% to $37,376. That's just 14% compounded annually.
Who's better to bet on than Musk? Not many people. None rival Tesla's sheer wealth creation power.
The $1 Trillion Company In The S&P 500
The magnitude of Tesla's boom is almost difficult to fathom.
Over the past roughly 10 years, Tesla's market value soared $1 trillion to hit $1.18 trillion. It's already the fifth most valuable company in the S&P 500, ahead of Facebook (FB).
And at its current value, Tesla is worth roughly five times more than Toyota Motor (TM), making it the most valuable automaker in the world.
What about General Motors (GM) and Ford (F)? They're almost rounding errors. Tesla is worth roughly seven times General Motors and Ford, combined.
And that's no mystery for growth investors who know what to look for.
Shares of GM are up about 189% in the past 10 years since being relisted in November 2010 following the 2008-2009 Financial Crisis bailouts. And Ford? Shares are up just 94% in the past 10 years.
What's Next For Tesla? Dominating the S&P 500?
Tesla's stock is certainly on hyperdrive, explaining its strong 99 IBD Composite Rating.
Tesla is now showing it is a profit machine. Tesla lost money on a net income basis every year since it was founded in 2003, until 2020.
Analysts think this is the year Tesla drives even further into the black. The company is expected in 2022 to make $8.94 a share on an adjusted basis, up nearly 300% from 2020. And even including all charges, analysts think Tesla will make $7.18 a share or $8.7 billion.
And investors had better hope Tesla hits these targets. Shares of Tesla are up more than 44% just this past 12 months to 1,170 apiece. That's already higher than what analysts think the stock should be worth in 12 months, or 910.94 a share.
With hopes this high, there's little room for error.
Top Stocks Since Tesla's IPO*
| Company | Ticker | Index | 10-year % stock ch.** | Stock % ch. Since Tesla IPO | Sector | $10,000 Investment 10-Years Ago Now Worth |
|---|---|---|---|---|---|---|
| Tesla | TSLA | S&P 500 | 20,735.5% | 24,389.7% | Consumer Discretionary | $2,083,547.0 |
| Nvidia | NVDA | S&P 500 | 8,502.0 | 11,424.0 | Information Technology | $860,199.4 |
| Patrick Industries | PATK | S&P 600 | 4,173.7 | 9,088.4 | Consumer Discretionary | $427,369.4 |
| Repligen | RGEN | S&P 400 | 7,098.6 | 7,923.9 | Health Care | $719,857.1 |
| Trex | TREX | S&P 400 | 4,458.5 | 5,211.8 | Industrials | $455,854.3 |
| Domino's Pizza | DPZ | S&P 500 | 1,550.3 | 4,877.9 | Consumer Discretionary | $165,030.2 |
| Lithia Motors | LAD | S&P 400 | 1,248.9 | 4,762.6 | Consumer Discretionary | $134,889.5 |
| DexCom | DXCM | S&P 500 | 5,389.7 | 4,568.7 | Health Care | $548,972.5 |
| Align Technology | ALGN | S&P 500 | 2,599.1 | 4,235.6 | Health Care | $269,910.2 |
| Celsius Holdings | CELH | S&P 600 | 25,220.7 | 3,979.4 | Consumer Staples | $2,532,069.0 |
Source: IBD, S&P Global Market Intelligence since June 29, 2010 (*), ** - from Jan. 3, 2012
Follow Matt Krantz on Twitter @mattkrantz
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