2010 Tesla IPO vs Tesla Roadster

Elon musk, the infamous tech genius and CEO of Tesla, has create a name for himself and Tesla because of his public marketing and the gen Z has fallen for Tesla because of a 2019 marketing drive, where while showcasing Tesla’s truck, it was declared failure by critics but analysts gave a complete opposite picture as the hidden agenda was fulfilled and Tesla became a world renowned brand. Tesla came into the lime light because of the car models and it’s features.

However,it is not a new brand, it was started in 2003 and has since manufactured battery driven cars and vehicles. The car models are just mesmerizing and the early sales shown a clear picture that the brand is here to stay.

So, as I am stock analyst my concern goes towards its stock and evokes a thought that what would happen if the stock would have been bought in 2010 and retired in 2021.

Well, let’s goes for some numerical:

  • Tesla Roadster was a new car in 2010 and just entered the market. The initial price of this model was around $109000 and the share price at that time was around $17.
  • The Car’s value would fall to $38006 in 2021 due to depreciation (annual decrease in the value of capital assets) assumed to be 10% p.a.
  • If the same amount was to be invested in Tesla’s share, it would fetch 6412 approx shares.
  • The Present value of the shares would be $43,00,000 and its Net Present value would be $30,65,465 after deducting taxes and other deductions. Accordingly, it gained around 14600% in the past decade.
  • The shares value is $30 million in 2021 and the Car’s value is just $38006.

A wise decision and investment would leave you with net $30 million but at the same time the experience of a Tesla car would also be sacrifice. So, choose wisely whether you want to live with the moment or you want to be rich in the future.