When Tesla went Public? Is an investor’s question that’s probably on your mind. This new electric car maker, which went public in June of 2010, has had a remarkable rise in the past year, surpassing the performance of even Netflix.
During the 2010s, Netflix was the best-performing stock on the S&P 500, rising 4,181% over the period Jan. 2010 through Dec. 2019. Since its debut, Netflix shares have grown by nearly two-and-a-half times, outperforming other big tech companies and all major automakers.
Elon Musk is smart and technologically savvy. He has the vision to launch a disruptive product. Tesla pitched itself as a company that has unmatched speed in innovation. It could rival the size and technological capabilities of huge, outdated incumbents. The public was intrigued by the prospect of a new, innovative car. And investors saw something they could be proud of. When Tesla went public, the market went wild. And it isn’t even the end of the story.
Tesla’s journey to the top hasn’t been without bumps and bruises. The stock plummeted 30% after Musk tweeted about going private. Musk was later sued by the U.S. Securities and Exchange Commission for misleading investors. And that’s not the end of it: Musk had to pay $20 million in fines for misleading the public. Musk subsequently announced that he was taking Tesla private at $420 a share.
Rivian’s IPO is more conventional than Tesla’s, but its market cap is over $1 trillion, making it the second-most valuable car manufacturer in the U.S. behind Tesla. While Tesla was in the midst of building its first electric vehicle, Rivian was just starting to sell cars. In fact, it only delivered 1,650 Roadsters at the time it went public. And as a result, it was the only car company in the last century to produce positive cash flow and high volume.
Today, Tesla stock is worth $347 – over twenty times its IPO price. Unlike the S&P index, Tesla stock has made incredible gains. In the past seven years, the stock has returned more than three times its IPO price. And investors should consider this when making an investment in Tesla. It’s one of the most exciting times in tech! With a stock that’s almost 3,000% higher than the S&P index, it’s hard to find a better investment. And with Tesla’s stock rising, you’ll be a part of history.