Tesla's IPO was 15 years ago. The stock is up almost 300-fold since then

Fifteen years ago, Tesla made its debut on the stock market, generating approximately $150 million in revenue, primarily from its groundbreaking Roadster—a sleek electric sports car with an impressive range of 236 miles on a single charge. At that time, the Model S sedan was still in development, with its market launch two years away. In its IPO filing, Tesla expressed ambitions to compete in the premium vehicle sector, projecting a much larger audience than the Tesla Roadster could attract. The company's IPO on June 29, 2010, was essentially a gamble on CEO Elon Musk's vision for mass-market electric vehicles, positioning Tesla as a tech-centric automaker far removed from traditional auto manufacturing hubs. Although Musk was not the founder, he became deeply involved early on, eventually taking over as CEO in October 2008 after a board-level coup against original CEO Martin Eberhard. An investor who invested $10,000 during Tesla's IPO would now see their stake valued at nearly $3 million. In comparison, a similar investment in the S&P 500 would yield around $57,000. Once a small-scale clean-tech startup, Tesla has now ascended to become the eighth most-valuable publicly traded company in the U.S., boasting a market capitalization exceeding $1 trillion and approaching $100 billion in revenue last year. While the Roadster has faded into history and the Model S has become less significant for the company's financial health, Tesla's current success is driven by the popular Model Y SUV and Model 3 sedan, alongside revenue from environmental regulatory credits. However, for the 54-year-old Musk, who recently celebrated his birthday, the past is just that—past. He has indicated that the future of Tesla lies beyond traditional car sales. "If someone doesn’t believe Tesla will achieve autonomy, they shouldn’t invest in the company," Musk stated during an earnings call last year, emphasizing the importance of self-driving technology in Tesla’s future. He further predicted that his vision for humanoid robots, named Optimus, could elevate Tesla’s market cap to an astonishing $25 trillion, with plans to have these robots operational in Tesla factories by the end of 2025. Despite Musk's ambitious promises, Tesla currently trails behind competitors like Alphabet's Waymo and Baidu’s Apollo Go in the realm of autonomous driving. Tesla's own Robotaxi service recently began a limited pilot in Austin, Texas, completing its first driverless delivery of a vehicle to a customer. However, Wall Street remains cautious, with skepticism surrounding Musk's futuristic claims, particularly as Tesla's stock has declined about 20% this year, underperforming major U.S. indexes. The company has also faced leadership changes, including the departure of Milan Kovac, vice president of Optimus robotics, and the recent firing of another high-ranking executive. Meanwhile, Tesla’s electric vehicle sales have stagnated, with first-quarter automotive revenue experiencing a second consecutive year-over-year decline, largely due to fierce competition, especially from lower-cost Chinese manufacturers. New Tesla sales in Europe have witnessed a fifth straight month of declines, and the highly anticipated Cybertruck has struggled to gain traction in the U.S. market. Musk's ventures into politics have added another layer of unpredictability to Tesla's business landscape. His support for Donald Trump and controversial political statements have negatively impacted Tesla's public image and brand value, which fell by 26% in 2024 according to Brand Finance. As the future unfolds, analysts caution that without innovative products and a strategy to improve public perception, Tesla might be viewed as past its peak. Tesla's stock has long been characterized by volatility. Over the past 15 years, it has seen numerous fluctuations, with an impressive 81% increase in May 2013, which was soon followed by months of steep declines. As the company navigates these challenges, the focus remains on whether Musk can realign his priorities toward resolving Tesla's immediate challenges and reinvigorating investor confidence.