Electric vehicle leader Tesla Inc (NASDAQ: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 could have made 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.
Tesla CEO Elon Musk was asked about the IPO in an interview and if 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,” Musk said.
Musk called out the investors in the IPO and also the increased offering size and pricing as testaments to demand.
“It’s worth noting that the smartest money in the world is betting on Tesla. They must have a reason to do so.”
Tesla shares closed up 40.5% to $23.84 on their first day of public trading. The stock has been one of the top performers over the last 12 years.
Related Link: Happy Birthday Elon Musk: 51 Facts And Figures About Tesla And SpaceX CEO On His 51st Birthday
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.
Based on a price of $671.24 for Tesla at the time of writing, the $1,000 investment at IPO would be worth $197,411.68 today.
