Unlocking the Profits: Tesla's Multiplier Effect in the Financial Forecast

If You'd Invested $1,000 in Tesla 5 Years Ago...

Tesla bears may not have noticed it, but Tesla profits are forecast to 3x over the next five years. I won't keep you in suspense. The answer is: $8,862.79.

• That's how much money you'd have today if you had invested $1,000 in Tesla (NASDAQ: TSLA) stock five years ago -- and it's a pretty nice return, right?
• Sure, there's been a lot of wailing and gnashing of teeth lately, a lot of proverbial clothes tearing, and sackcloth and ashes wearing, over the fact that Tesla stock has been cut in half from its 2023 high of nearly $300. But if you take the longer view, on April 15, 2019, Tesla stock closed at a split-adjusted price of $18.22 per share.
• Is Tesla stock still a buy? Things look bleak for Tesla right now, with demand for electric cars slowing and Tesla laying off more than 10% of its workers this week.

Forecasts and Future Potential

From 2019, a year in which Tesla lost money, to 2023, the year it recorded a record $15 billion profit, Tesla stock surged more than 10x in price. This year, with analysts polled by S&P Global Market Intelligence forecasting Tesla earnings to decline 43% to $8.6 billion, the stock is down -- which is entirely to be expected. But what do you think might happen if Tesla survives its current troubles, and resumes growing earnings again?