If Purchasing a Single Tesla Stock Share During Its Initial Public Offering, Here's the Current Amount You Would Possess
One of the most prosperous stocks in recent times is Tesla (TSLA with a 6.14% surge). This company has managed to thrive against all odds, becoming one of the few automakers to consistently turn a profit.
Investors who put faith in Elon Musk's vision for Tesla have been handsomely rewarded, but the extent of the early investors' profits might shock you.
The worth of a single Tesla share today
If someone had purchased a single share of Tesla's Initial Public Offering (IPO) at $17 per share, they'd now hold 15 shares after a 5-for-1 split in 2020 and a 3-for-1 split in 2022. These shares would be worth around $321 each as of Nov. 15, totalling $4,815. This represents a whopping 283x return on investment.
Tesla has defied the odds in numerous ways. For a long time, three major U.S. automakers ruled the industry. The high fixed costs associated with starting a car company made it difficult for new entrants to succeed. However, Tesla managed to break this trend.
Furthermore, Tesla leads the electric vehicle (EV) market in the U.S., according to the Energy Information Administration. This is impressive considering that many consumers have been reluctant to embrace this technology and numerous established manufacturers have scaled back their electric vehicle plans.
The future of Tesla stock
Tesla isn't likely to rest on its laurels. In fact, its battery and solar technology business, as well as its investments in artificial intelligence (AI) and autonomous vehicle technology, could revolutionize the company. Tesla recently unveiled its Cybercab and is hopeful of producing 2 million units annually by 2026.
Self-driving technology enthusiast Cathie Wood, from Ark Invest, is also bullish about Tesla. She believes that the platform that powers self-driving cars could become Tesla's primary source of revenue. Ark Invest has set a $2,600 price target for Tesla stock by 2029, which implies an over eightfold increase from current levels.
Time will tell how far Tesla goes in the EV and autonomous vehicle industry. However, it's safe to say that the gains for IPO investors are far from over.
Individuals who are interested in investing in the finance sector might consider allocating some money towards Tesla's growth. With its advancements in artificial intelligence and autonomous vehicle technology, Tesla could see significant growth in the future.
Investors who had the foresight to invest in Tesla early on, such as during its Initial Public Offering, have witnessed substantial returns on their investment.
