Tesla's market-thumping performance since 2016 was driven by outstanding revenue growth.
At the stock’s current valuation, the investment community is pricing in an impeccable future for this business.
At a $1.3 trillion market capitalization, Tesla (NASDAQ: TSLA) is one of the most valuable businesses on Earth. During its ascent, the disruptive enterprise has taken its shareholders on a ride of massive returns.
If you'd invested $10,000 in this Magnificent Seven stock 10 years ago, here's how much you'd have today.
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Tesla shares have put up a marvelous trailing 10-year return of 2,920% (as of July 1). If you were able to buy $10,000 worth of the stock at the start of July 2016, you'd have $302,160 today. Among the "Magnificent Seven" stocks, Nvidia is the only stock that performed better.
A decade ago, Tesla was essentially a newcomer in the automotive industry. In 2015, it sold almost 51,000 electric vehicles (EVs). By 2025, that figure had ballooned to over 1.6 million, driving monster automotive revenue growth of 1,778% during that stretch. No one will deny that this is now a globally recognized brand.
However, Tesla's strategic focus has shifted. The next 10 years may look different for this tech company. Tesla, which still makes most of its money from EV sales, is dedicated to artificial intelligence, autonomous driving, and robotics.
The market couldn't be more bullish. Tesla stock trades at a price-to-earnings ratio of 376. Expectations are sky-high, with no room for error going forward. Investors shouldn't anticipate past returns to be repeated.
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*Stock Advisor returns as of July 3, 2026.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia and Tesla. The Motley Fool has a disclosure policy.