Tesla delivers 224% return for investors despite 2021 stock price slump

Tesla Inc (NASDAQ:TSLA) has delivered a return on investment of 224% for its shareholders in the past 12 months, outperforming all of its rivals bar NIO Inc (NYSE:NIO), another electric car manufacturer. Data acquired by finance analyst Finbold revealed Tesla stock registered an ROI of 224% between June 2021 and June 2020, outperforming several of its major competitors and trailing only the burgeoning NIO. NIO had an incredible 12 months, delivering almost double the returns of Tesla with 539%, with Ford Motor (152%), General Motors (141%) and Volkswagen AG (116%) the next best stocks. Market fundamentals holding Tesla strong Finbold said the massive gains Tesla made earlier in the year were enough to sustain a high ROI despite the slump since. “Overall, the growth in Tesla stock was mainly driven by several fundamental factors, including greater retail investor interest in the stock and the inclusion to the S&P 500 index,” it said. “The company also ramped production, maintaining its status as an EV market leader, launching the Model Y compact SUV in early 2020, catering to one of the fastest-growing segments in the auto industry. “Tesla also had a grip on the lucrative Chinese market after beginning production at the Shanghai facility towards the end of 2019, which coincided well with a recovery in the Chinese EV market from the pandemic despite competitors like NIO operating in the region. “Tesla’s commitment to improving its vehicles’ technology also played a crucial role in the returns on its stock and in the wake of a new focus towards the climate change agenda Tesla has been at the centre of attention, with more investors betting on the company. “Some jurisdictions are also enacting legislation favouring consumers opting for electric vehicles, and as a leader in the sector, Tesla stands to gain.” But could Elon Musk derail it all? Finbold also pointed out the fluctuations in the company’s stock caused by public statements and positions from its founder Elon Musk. “Tesla CEO Elon Musk’s involvement in the cryptocurrency space might have had a mixed impact on the company’s stock,” it said. “Early this year, Tesla invested in bitcoin, helping drive the cryptocurrency to record levels. “On the flipside, Musk’s apparent flip flop on Bitcoin accompanied by the company cancelling the asset as a form of payment potentially impacted the stock.” Finbold also pointed to increased competition as a threat to Tesla’s market share, with other American automakers, including General Motors and Ford, scaling up their EV wings with lined-up models that will rival the Cybertruck. - Daniel Paproth