Tesla, the most successful automotive company of the moment, has recently reached its record high on the stock market. At the time of writing, Elon Musk’s company is trading $ 1,389.86 per share, which is roughly equivalent to 1,231 euros. In other words, it is the most valued carmaker in the world. 10 years ago, just when the company entered Wall Street, the picture was very different, in fact, Tesla’s stock was trading for less than 20 euros in exchange. Compared to other companies in the sector, Tesla has been the most profitable group in the last decade. But how much profitable really? To give proof of this, we have made the calculations with a minimum investment of 100 euros in 2010, year in which it was released on the stock market.
How much money would you have if you had invested 100 euros in Bitcoin in 2010?
First of all, how many shares of Tesla could he have bought with 100 euros in 2010?
Before entering to assess the revaluation of the company in the last decade, it is necessary to know the investment portfolio that we could have obtained in 2010 with 100 euros of capital.
Graphic extracted from etoro.com.
On July 2, 2010, the date the company went public, Tesla’s cost per share was $ 19.20, which in exchange is about 17 euros. Having invested 100 euros back then, we would have obtained a total of 5.88 Tesla sharesThis is without taking into account the costs derived from the purchase of shares. It is worth saying that the investment volume is quite low. Typically, you start investing with considerably higher capital than 3 figures.
Based on these 5.88 shares of the North American giant, the calculation is more or less simple and directly proportional to the current value of Tesla on the stock market.
How much money would you have now if you had invested 100 euros in Tesla in 2010?
If we take Tesla’s current cost per share (around 1,231 euros per exchange) as a reference, the value of our portfolio in 2020 would have practically multiplied by 70. Yes, you read correctly. Specifically, our portfolio would have a capital of 7,238 euros, a little less if we decide to sell the shares for the costs derived from the sale.
The thing changes completely if our initial investment is multiplied by 10 or by 100. Had we invested 1,000 euros in Tesla in 2010, we would have obtained a total of 58.82 shares. Our portfolio in 2020 would be worth no less than 72,407 euros, more or less what it costs a Tesla Model 3 Performance with the occasional extra included. If you had invested 10,000 euros, this value would practically multiply by 10. Specifically, 724,111 euros, or what is the same, three latest-generation Tesla Roadsters, the most powerful Tesla car to date.
If you have Tesla stock you better sell it soon
Tesla’s recent rally on the stock market is no accident. On the one hand, the company’s good results in China have strengthened investor confidence in the automobile industry. To this we must add that the Tesla manufacturing plant in Europe is already being built, which could boost sales in the continent by reducing the sale price.
With all this data on the table, personalities such as Michael Hartnett, the visible face of Bank of America investments, have described this phenomenon as “non-rational exuberance”. In fact, Hartnett claims that these types of practices “continue to feed bubbles.” This could have an impact on long-term investments with low profitability. If, on the other hand, we have made a short investment in Tesla, we will most likely make a profit. This is confirmed by Wedbush, one of the largest private investment companies in the world. According to the company, “there is still scope to raise Tesla’s target to $ 1,500 a share.”
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