Tesla is one of the most talked-about car companies in the world. Tesla is frequently the focus of the financial news cycle due to its groundbreaking EV technology, outspoken CEO Elon Musk, and volatile stock returns. If you had bought the stock when it was still a “story” in 2014, you could have made a “12-bagger,” or more than 12 times your investment, if you had held it for the next ten years.
However, there are two key points to remember about those incredible returns. Initially, they came in fits and starts, with the stock falling sharply as frequently as it rose dramatically. Second, past performance does not guarantee future results. There is no telling how Tesla will perform over the next decade, so don’t project the past decade’s gains into the future.
With those caveats in mind, herHow much would $1,000 invested in Tesla in 2014 be worth today?oday, as well as how analysts view the stock’s future prospects.
How Much $1,000 Invested in Tesla in 2014 Would Be Worth Today
Tesla sold for $16.70 on March 3, 2014, which may appear to be an unbelievable low price when adjusted for stock splits. Tesla was worth $202.64 at the market close on March 1, 2024 (March 3 was a Sunday).
This means that your $1,000 from ten years ago—technically, $1,002—would have purchased sixty shares of Tesla. As of March 3, 2024, those 60 Tesla shares would be worth $12,158.40. That represents a 28.342% annual rate of return.
Although Tesla’s annual rate of return over the last decade has been more than triple the long-term average of the stock market, it may appear pedestrian to those who have followed the stock. Tesla shares, for example, increased by a staggering 745% in 2020. However, just two years later, the stock experienced its worst year yet, falling 65% in 2022 alone. Just like the stock market, Tesla experiences ups and downs—albeit on a much larger scale.
Tesla’s 12-Month Analyst Stock Targets
Analysts are not particularly optimistic about Tesla stock right now. The average price target for the next year is $211.58, implying only a 4.4% increase. Given the stock’s potential for large movements, this could be interpreted as a low-confidence vote at the moment.
Of course, Tesla has been hit from all sides recently, with price cuts on its vehicles and a slower growth rate hurting investor sentiment. However, the company has repeatedly surprised, and it still has a lot of potential if everything goes as planned.
Tesla, for example, recently released its Cybertruck, and in 2025, it will launch its first mass-market vehicle, the Redwood, which will start at $25,000.
Five-Year Tesla Price Targets
Most analysts do not provide long-term price targets for stocks, especially those with as many variables as Tesla. Of the few that have a five-year target, price estimates vary greatly, highlighting how Tesla has always been a “make-or-break” stock.
Wallet Investor, for example, has a five-year price target of $564.24, whereas Gov Capital is much more optimistic, expecting a price of $2,326.138. However, most major Wall Street firms avoid making these types of longer-term projections because they are inherently inaccurate, sometimes dramatically so.
Is Tesla a good investment right now?
There has long been a tug-of-war over Tesla shares, with some seeing it as a revolutionary company poised to dominate the world, while others are concerned that its grand ambitions and controversial CEO—not to mention good old-fashioned competition—will limit its future potential.
This contributes to Tesla’s historically high volatility. Whether or not Tesla is a good investment right now is determined by your belief in the company’s ability to overcome current challenges and continue to innovate.
If this is the case, the stock will most likely continue to rise, and its more than 20% year-to-date decline may present a buying opportunity. However, if the company continues to face real-world challenges, it may struggle to replicate its previous decade’s performance.