Electric vehicle leader Tesla Inc TSLA went public on June 29, 2010. Investors who bought and held the IPO have been pleasantly rewarded since that time. Here’s a look at just how much investors have made investing in the IPO.
What Happened: Tesla went public on June 29, 2010 at a price of $17 per share. The company increased the size of the offering and priced above an expected range of $14 to $16.
Back then, Tesla CEO Elon Musk was asked about the IPO in a Bloomberg interview and whether investors were taking a leap of faith by investing in the company.
“When people see who’s invested in the IPO, it’s the smartest, most long-term thinking investors in the market,” he replied.
He added that “[it’s] worth noting that the smartest money in the world is betting on Tesla. They must have a reason for doing so.”
Tesla shares closed up 40.5% to $23.84 on their first day of public trading. Over the last 12 years, the stock has been one of the top performers.
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Investing $1,000 in Tesla IPO: A $1,000 investment in Tesla shares at the IPO price of $17 could have acquired 58.82 shares of TSLA.
Tesla had a five-for-one stock split in 2020, which would have turned the shares into 294.10 shares of TSLA. A three-for-one stock split in 2022 would have turned the IPO investment into 882.30 shares of TSLA.
Based on a price of $185 for Tesla at the time of writing, the $1,000 investment at IPO would be worth $163,225.50 today.
Tesla shares hit an all-time high of a split-adjusted $409.97 in November 2021. The same hypothetical $1,000 investment at the IPO would have been worth $361,716.53 at Tesla’s all-time high for shares.
Analysts and investors see multiple catalysts for Tesla ahead including increased production capabilities, a new lower-cost electric vehicle and the highly anticipated launch of the Cybertruck electric pickup truck.
Read Next: Here’s How Many Vehicles Tesla Has Delivered And Produced In Each Quarter Since 2019
Photo: Pixabay
Image and article originally from www.benzinga.com. Read the original article here.