If You'd Invested $10,000 in Tesla Stock 10 Years Ago, Here's How Much You'd Have Today

Core Insights - Tesla has shown remarkable growth over the past decade, with an investment of $10,000 growing to$215,600, reflecting an annualized growth rate of nearly 36% [1] - The company is the clear market leader in the U.S. electric vehicle (EV) market, having established itself as the premier EV company [2] - Despite a slowdown in overall EV sales growth, Tesla has managed to reduce its cost per vehicle to below $35,000, enhancing its competitive position [3] Future Prospects - Tesla has several catalysts for stock price growth in 2025, including the launch of the new Model Y and a more affordable model expected in the first half of 2025 [4] - The introduction of the Cybercab, Tesla's autonomous vehicle offering, is crucial for the company's future, with plans for a launch in Austin this year and volume production starting in 2026 [5] - ARK Invest's Cathie Wood has a bullish outlook on Tesla, projecting a price target of$2,600 by 2029, largely based on the potential of the Cybercab [6] Valuation Insights - According to ARK's valuation model, 88% of Tesla's enterprise value in 2029 is expected to come from robotaxis, with only 9% from traditional EVs, indicating a significant reliance on the success of the Cybercab [7] - The current share price around $259 suggests that the market is pricing in only$25 per share for the Cybercab, highlighting potential upside if the product is successful [7] Challenges and Risks - Tesla has a history of delays in technology releases, raising concerns about the timely launch of the Cybercab and other products [9] - Recent production and delivery data indicate a build-up of inventory, which could impact future sales and market perception [11][12] - ARK's model relies on several assumptions regarding battery costs, robotaxi adoption, and regulatory approval, which may not materialize [13] Market Position - Tesla needs to maintain its market-leading position in the U.S. EV sector, especially with the anticipated launch of the new Model Y and a low-cost model [14] - Investors are cautious and may wait to see improvements in delivery data before making further commitments, particularly in light of disappointing first-quarter results [15]