Here's How Much You'd Have Today If You Had Invested $10,000 in Tesla the Day Before It Completed Its Last 3-for-1 Stock Split.

When a big-name stock executes a stock split, it gets a lot of attention. That's because stock splits are considered bullish indicators -- the company is splitting its stock to make it more affordable to retail investors. It also provides the company with greater flexibility in offering compensation packages that include stock equity for its employees. It's a win-win, generally.

That's why the 3-for-1 stock split that Tesla (NASDAQ: TSLA) announced in August 2022 got so much attention. Tesla was a high-flying stock, gaining 2,000% in the three years immediately before the split. Had you invested $10,000 into Tesla in August 2019, you would have had $210,000 the day of the split.

But against those lofty expectations, Tesla stock has been a disappointment since the split. It's gained only 28% since executing the split on Aug. 25, 2022, meaning that had you invested $10,000 in Tesla the day before the split, you'd only have $12,800. Meanwhile, the S&P 500 (SNPINDEX: ^GSPC) gained 77% over the same period, and a $10,000 investment in an S&P 500 index fund, such as the Vanguard 500 Index Fund ETF (NYSEMKT: VOO), would have grown to nearly $17,800.

TSLA data by YCharts

Tesla, before and after the split

Before the stock split, Tesla was riding high. The adoption of electric vehicles was in full force, and Tesla saw impressive growth as it expanded both domestically and overseas.

For example, when Tesla reported second-quarter earnings in 2022, the company hit $1 billion in quarterly net income for the first time. It posted revenue of $11.96 billion and earnings of $1.45 per share, beating analysts' expectations of $11.30 billion and $0.98 per share, respectively. It was a massive win for Tesla, which saw its net income rise from $438 million to $1.14 billion in a single quarter.

Perhaps most importantly, Tesla's profit margins remained exceptionally high, at 28.4%.

But Tesla today is a very different company. Competition is fierce. Margins are down. And CEO Elon Musk got involved in both U.S. and European politics, which damaged the Tesla brand. A Yale University report estimates that Musk's political activities resulted in more than 1 million fewer Tesla sales. Tesla saw annual declines in automotive sales in both 2024 and 2025.

Image source: Tesla.

Tesla's revenues in the first quarter of this year were $19.3 billion, up 16% from a year ago. But even with that bright spot, Tesla's net income was just $47.7 million. The company hasn't seen $1 billion in quarterly net income since the fourth quarter of 2024.

Tesla is undergoing significant change today. The company is still an EV maker, but it's also investing heavily in Musk's vision for its Optimus robot line that he hopes to make available to both consumers and factories. Tesla continues to work on its full self-driving technology in hopes of securing approval for unsupervised, nationwide use. But both ventures are speculative and expensive.

The company's shrinking profitability explains why a $10,000 investment made before the stock split has dramatically underperformed both investors' expectations and the broader market.

Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla and Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy.