Electric vehicle leader Tesla Inc TSLA hit a market capitalization of $1 trillion and saw shares soar above the $1,000 level. With shares down from all-time highs, here’s a look at how much investors stand to gain if new highs can be reached.
What Happened: Tesla was one of many high-growth stocks that saw strong interest from retail traders and investors in 2021 as it traded based on the strong growth of vehicle production and delivery numbers.
The stock has pulled back with the overall market in 2022 and also trades down as supply chain issues are hurting the overall automotive industry.
The Russia-Ukraine conflict and higher costs for electric vehicle components such as lithium and nickel could impact Tesla’s production figures and profits per vehicle.
Tesla has raised prices on vehicles and also delayed deliveries on others.
The company has delayed the CyberTruck and Tesla Semi on several occasions, which could also be reasons for investors changing sentiment on the company.
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All-Time High: On Nov. 4, 2021, Tesla shares hit an all-time high of $1,243.49. At the time of writing, Tesla shares trade at $871.60 and have a market capitalization of around $900 billion.
Hitting a new all-time high would put the company back in the one trillion market capitalization club that currently consists of Apple Inc AAPL, Saudi Aramco, Microsoft Corporation MSFT, Alphabet Inc GOOGGOOGL and Amazon.com, Inc. AMZN.
Tesla is sandwiched in the middle of fifth place Amazon ($1.6 trillion cap) and seventh place Berkshire Hathaway Inc. BRKABRKB, which has a market cap of $752 billion.
If investor sentiment turns positive on Tesla or the company shares new updates and timelines during its next quarterly earnings report expected in April, shares could go higher.
A $1,000 investment in Tesla shares today could buy 1.1473 shares of the stock. If Tesla returns to all-time highs, the $1,000 investment would be worth $1,426.66, representing a gain of 42.7%.
Photo: Courtesy Tesla Inc.
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