Beautiful Virgin Islands

Thursday, Jan 22, 2026

If You Invested $5,000 in Tesla's IPO, This Is How Much Money You'd Have Now

If You Invested $5,000 in Tesla's IPO, This Is How Much Money You'd Have Now

There aren't many more controversial stocks than Tesla (NASDAQ:TSLA), the electric-vehicle manufacturer that has upended the automobile world since its initial public offering in 2010.

After initially producing a "concept car" Roadster, Tesla moved on to the Model S, a high-end sedan, and the Model X, a luxury SUV. But these accomplishments pale in comparison to the introduction of the Model 3, Tesla's first mass-market car that starts at just over $35,000, which was introduced in 2017.

The Model 3 has the potential to be a game changer in the automobile industry, as a low-enough-cost vehicle could spur mass adoption of EVs, leading to a virtuous circle where Tesla achieves large economies of scale and increasing margins and profits. Next year, the company will introduce the Model Y, an affordable crossover vehicle, which could match or exceed the success of the Model 3. Even more exciting, Tesla plans on unveiling its new pickup truck next week on Nov. 21.

Though the stock is only barely positive for the year, it's up over 45% over the past three months. The surge came following a third-quarter report that beat profit expectations, as well as the excitement around new vehicles yet to be introduced.

Of course, Musk and his team don't think in the short term but rather the long term. And over the long haul, Tesla's stock has been massively profitable for early investors - even if the company itself is currently unprofitable as it invests in disruptive growth. So, just how well have early shareholders made out?


The IPO price was how low?

None of these recent successes was assured when the company went public back in June 2010. All investors had to go on was a belief in Elon Musk and his team and their vision to create the first new public auto company in the U.S. since 1956. Adding even more risk, it was an all-electric vehicle, a concept that many large incumbents had failed to produce profitably.

In fact, with little more than a vision, leading technology, and a serial entrepreneur with a great track record at the helm, Tesla's stock went public at just $17 back on June 29, 2010. On the first day of trading, its stock shot up over 40% to $23.89. Yet even if you were a public investor who didn't get in on the pre-trading IPO price, you still would have made a small fortune.

Today, Tesla's stock sits at $347, just over 20 times its IPO price and over 14 times the price at the end of the first day of trading. That's a total return of 1,941% and 1,322%, respectively. If you had invested $5,000 and been lucky enough to get in at the IPO price of $17, your Tesla stock would be worth $102,050 today. Over nine years and four months, that's an average annual return of 38.3%.


Current controversy sounds a lot like the past

Of course, Tesla has long been controversial. Even today, many prominent investors such as Jim Chanos and David Einhorn are short Tesla's stock. Musk and Einhorn even got into a war of words on Twitter recently, with Musk taunting Einhorn's losing short bet and Einhorn challenging Tesla's truthfulness regarding its financials. Some other skeptics have fixated on the many executive departures from the company. On the other hand, bulls could conclude that the high turnover is a result of Tesla's demanding workaholic culture, which generates overall benefits.

However, controversy has always followed Tesla, even when its price was one-twentieth of where it is now. As you can see, short interest in Tesla has hovered around 20% of total shares outstanding since 2012.

Needless to say, these short bets against Tesla have lost a lot of money thus far.


It pays to be an optimist

It's hard to see exactly where Tesla shares will go from here, as its market capitalization has rocketed to over $60 billion and few would ever call it "cheap." It was also hard to see the astounding success it would have in the market when it went public back in 2010.

However, it was not hard to know that Elon Musk was smart, technologically savvy, and had the vision to launch a highly disruptive product. Musk's pitch was that Tesla had unmatched speed of innovation that could catapult it past large, bureaucratic, and outdated incumbents. Given recent results, it appears Tesla is achieving that promise.

Of course, exciting growth companies don't always work out (Moveipass, anyone?). Yet the lesson for investors - especially young investors - is that speculation on disruptive growth companies with highly invested founder-CEOs can sometimes pay off, and in a big way. As you can see, as long as you are well diversified, the returns of just one "Tesla," if held for the long term, can make up for many other growth investments that don't perform. Just be sure to make a number of bets and size positions according to your risk tolerance.

Tesla seems well on its way to make history. While the stock may not generate the massive returns of the past nine years, it will surely be exciting to watch.


Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Starmer Steps Back from Trump’s ‘Board of Peace’ Amid Strained US–UK Relations
Prince Harry’s Lawyer Tells UK Court Daily Mail Was Complicit in Unlawful Privacy Invasions
UK Government Approves China’s ‘Mega Embassy’ in London Amid Debate Over Security and Diplomacy
Trump Cites UK’s Chagos Islands Sovereignty Shift as Justification for Pursuing Greenland Acquisition
UK Government Weighs Australia-Style Social Media Ban for Under-Sixteens Amid Rising Concern Over Online Harm
Trump Aides Say U.S. Has Discussed Offering Asylum to British Jews Amid Growing Antisemitism Concerns
UK Seeks Diplomatic De-escalation with Trump Over Greenland Tariff Threat
Prince Harry Returns to London as High Court Trial Begins Over Alleged Illegal Tabloid Snooping
High-Speed Train Collision in Southern Spain Kills at Least Twenty-One and Injures Scores
Meghan Markle May Return to the U.K. This Summer as Security Review Advances
Trump’s Greenland Tariff Threat Sparks EU Response and Risks Deep Transatlantic Rift
Prince Harry’s High Court Battle With Daily Mail Publisher Begins in London
Trump’s Tariff Escalation Presents Complex Challenges for the UK Economy
UK Prime Minister Starmer Rebukes Trump’s Greenland Tariff Strategy as Transatlantic Tensions Rise
Prince Harry’s Last Press Case in UK Court Signals Potential Turning Point in Media and Royal Relations
OpenAI to Begin Advertising in ChatGPT in Strategic Shift to New Revenue Model
GDP Growth Remains the Most Telling Barometer of Britain’s Economic Health
Prince William and Kate Middleton Stay Away as Prince Harry Visits London Amid Lingering Rift
Britain Braces for Colder Weather and Snow Risk as Temperatures Set to Plunge
Mass Protests Erupt as UK Nears Decision on China’s ‘Mega Embassy’ in London
Prince Harry to Return to UK to Testify in High-Profile Media Trial Against Associated Newspapers
Keir Starmer Rejects Trump’s Greenland Tariff Threat as ‘Completely Wrong’
Trump to hit Europe with 10% tariffs until Greenland deal is agreed
Prince Harry Returns to UK High Court as Final Privacy Trial Against Daily Mail Publisher Begins
Britain Confronts a Billion-Pound Wind Energy Paradox Amid Grid Constraints
The graduate 'jobpocalypse': Entry-level jobs are not shrinking. They are disappearing.
Cybercrime, Inc.: When Crime Becomes an Economy. How the World Accidentally Built a Twenty-Trillion-Dollar Criminal Economy
The Return of the Hands: Why the AI Age Is Rewriting the Meaning of “Real Work”
UK PM Kier Scammer Ridicules Tories With "Kamasutra"
Strategic Restraint, Credible Force, and the Discipline of Power
United Kingdom and Norway Endorse NATO’s ‘Arctic Sentry’ Mission Including Greenland
Woman Claiming to Be Freddie Mercury’s Secret Daughter Dies at Forty-Eight After Rare Cancer Battle
UK Launches First-Ever ‘Town of Culture’ Competition to Celebrate Local Stories and Boost Communities
Planned Sale of Shell and Exxon’s UK Gas Assets to Viaro Energy Collapses Amid Regulatory and Market Hurdles
UK Intensifies Arctic Security Engagement as Trump’s Greenland Rhetoric Fuels Allied Concern
Meghan Markle Could Return to the UK for the First Time in Nearly Four Years If Security Is Secured
Meghan Markle Likely to Return to UK Only if Harry Secures Official Security Cover
UAE Restricts Funding for Emiratis to Study in UK Amid Fears Over Muslim Brotherhood Influence
EU Seeks ‘Farage Clause’ in Brexit Reset Talks to Safeguard Long-Term Agreement Stability
Starmer’s Push to Rally Support for Action Against Elon Musk’s X Faces Setback as Canada Shuns Ban
UK Free School Meals Expansion Faces Political and Budgetary Delays
EU Seeks ‘Farage Clause’ in Brexit Reset Talks With Britain
Germany Hit by Major Airport Strikes Disrupting European Travel
Prince Harry Seeks King Charles’ Support to Open Invictus Games on UK Return
Washington Holds Back as Britain and France Signal Willingness to Deploy Troops in Postwar Ukraine
Elon Musk Accuses UK Government of Suppressing Free Speech as X Faces Potential Ban Over AI-Generated Content
Russia Deploys Hypersonic Missile in Strike on Ukraine
OpenAI and SoftBank Commit One Billion Dollars to Energy and Data Centre Supplier
UK Prime Minister Starmer Reaffirms Support for Danish Sovereignty Over Greenland Amid U.S. Pressure
UK Support Bolsters U.S. Seizure of Russian-Flagged Tanker Marinera in Atlantic Strike on Sanctions Evasion
×