Is Tesla Stock Recession-Proof?
If you invested $10,000 in Tesla's (NASDAQ: TSLA) public debut back in June of 2010, you'd be sitting on a cool $1.94 million today. By comparison, the same amount invested in an index fund would have yielded a far more modest total return on capital ranging from $30,000 to $42,000, depending on which benchmark the fund was designed to track.
As a result of this jaw-dropping performance over the past 12 years, Tesla has earned an exceptionally loyal following from its shareholders. Because of this, the electric car and renewable energy giant has been one of the few tech-heavy outfits to generate positive returns for investors over the past 12 months.
Thanks to a flurry of headwinds such as rising interest rates, soaring inflation, supply chain woes, and geopolitical turmoil, tech giants Amazon and Microsoft have lost 27.9% and 17.7% of their value, respectively, since September of 2021. Meanwhile, Tesla, which is largely subject to these exact same macroeconomic pressures, has netted shareholders a respectable 22% gain over this same period.
Source Fool.com
