One of the most successful stocks over the last few years is Tesla (TSLA -4.95%). The company has defied the odds by becoming one of the few automakers to become a consistently profitable business.
Amid this success, having faith in Elon Musk's vision for Tesla has paid off for investors, but the degree to which its early investors have benefited may come as a surprise.
The value of one Tesla share today
If anyone had bought one share of Tesla's IPO at $17 per share, they would own 15 shares worth just over $314 each as of the time of this writing. That would leave such an investor with $4,710 today, a 277-fold return.
Tesla defied the odds on many levels. Since the company now known as Stellantis bought American Motors in 1987, only three U.S. companies now build automobiles. Given the high fixed costs of starting a car company, none had recently entered the business successfully until Tesla.
Additionally, Tesla dominates the electric vehicle (EV) market in the U.S., according to the Energy Information Administration. This is notable as many consumers have resisted the technology, and numerous legacy manufacturers have scaled back plans to go all-electric.
Tesla stock going forward
Furthermore, Tesla is unlikely to stop at EV leadership. Indeed, it has made itself a factor in battery and solar technology, but it is its investments in artificial intelligence (AI) and work on perfecting autonomous vehicle technology that could redefine the company. For one, it recently unveiled its Cybercab and believes production on that vehicle could rise to 2 million units annually by 2026.
Moreover, one notable bull about self-driving technology is Cathie Wood's team at Ark Invest, who believes the platform that powers self-driving cars could grow to the point that it becomes Tesla's primary revenue source. Due to this belief, it set a $2,600 price target on Tesla stock by 2029, a more than eightfold gain from current levels.
Time will tell how far Tesla goes in both the EV and autonomous vehicle industry. However, no matter what happens, the gains for IPO investors are unlikely to stop anytime soon.
