Tesla Stock Lags S&P 500 Since 2020 Index Entry
A $10,000 stake in Tesla at its 2020 S&P 500 addition is now worth about $15,700, significantly underperforming an index fund investment of the same amount which stands at $20,500. This lag persists despite the automaker tripling its revenue, as the initial high valuation required substantial growth just to maintain price levels.
According to reporting from GN stocks/sp500, a $10,000 investment in Tesla at its 2020 index entry would currently be worth approximately $15,700, while an equivalent S&P 500 index fund position would have grown to about $20,500. The article notes that despite Tesla tripling its revenue, its valuation has compressed from over 900 times earnings to roughly 330 times, meaning most of the company's growth was already priced in at the time of inclusion.
Source: The Globe and MailA $10,000 stake in Tesla at its 2020 S&P 500 inclusion is worth significantly less than an equivalent index fund investment today, despite the automaker tripling its revenue and expanding into autonomous ride-hailing.
Source: The Motley Fool
