The auto industry was convinced electric vehicles (EVs) were impractical, that the technology could not achieve critical mass to upset the internal combustion engine.
When Tesla (NASDAQ:TSLA) filed for its initial public offering (IPO) in January 2010, it was a six-year-old start-up best known for its Roadster EV that would set back consumers a cool $109,000. A bet on Tesla and its quirky CEO Elon Musk was anything but a sure thing, but if you were convinced EVs would be big, buying into the hype surrounding its IPO wouldn't have been crazy.
Today, you definitely would be sitting on a profit, but let's look at Tesla's market debut 11-plus years ago and see where that would leave you as an investor now.
An EV in every driveway
Big Auto might have dismissed EV technology, but there was a lot of excitement over the competition between Tesla and companies like Fisker, which also sold sleek EV sports cars.
The Karma was another high-end EV that sold for over $100,000, but whereas Fisker was popular among the glitterati in Hollywood, Musk wanted to build EVs for everyone and promised to develop cars for $30,000 or less, a move that could launch sales skyward.
That's pretty much how it worked out. Fisker went bankrupt in 2013 and its assets were sold to Chinese auto parts maker Wanxiang Group. Tesla, on the other hand, went on to become the most valuable auto manufacturer in the market today, valued at over $633 billion. In comparison, second-place Toyota is worth just over $276...
Read Full Story: https://www.fool.com/investing/2021/08/26/if-you-invested-1000-in-tesla-in-2010-this-is-how/
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