Tesla (TSLA) Performance Since S&P 500 Addition Shows 57% Growth

On December 18, 2020, Tesla (NASDAQ:TSLA) shares rose almost 6% to close at $695, with over 200 million shares traded. A $10,000 investment in Tesla would now be worth approximately $15,700, while the same amount in an S&P 500 index fund would have grown to about $20,500. Since joining the S&P 500, Tesla's market value reached over $658 billion, trading at more than 900 times its 2020 earnings. Tesla's revenue now exceeds $100 billion, generating a net income of about $3.8 billion over the past four quarters, which is significantly higher than its earnings in 2020, yet lower than its peak in 2022. This analysis highlights the performance gap between Tesla and the S&P 500, which is crucial for investors assessing growth potential in index versus individual stocks.