By MATT KRANTZ Invetor’s Business Daily
It’s been an amazing decade-long ride for Tesla (TSLA) investors — literally better than any other S&P 500 stock. It’s a millionaire maker.
The consumer discretionary stock debuted on June 29, 2010, and it’s up a stunning 21,323% since then to a new high Monday of 1,023.59. 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.
If you invested $10,000 with founder Elon Musk 10 years ago, your stake would be worth $1.8 million now. That works out to a more than 68% average annual return. The same $10,000 put into the S&P 500 during that time grew just 272% to $37,115. 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 $1.01 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 time 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 131% in the 10 years since being relisted in November 2010 following the 2008-2009 Financial Crisis bailouts. And Ford? Shares are up just 61% in the 10 years since Tesla went public.
