The global panic caused by the COVID-19 pandemic reached its peak in the first half of 2020, leading to significant disruptions in daily life and financial stability. To combat the crisis, governments worldwide introduced stimulus packages to alleviate the economic impact, resulting in a short-lived recession but exacerbating the debt crisis. This also fueled the rise of meme stocks and the bull market for cryptocurrencies.
In the United States, many individuals chose to use the $1,200 check from the Coronavirus Aid, Relief, and Economic Security (CARES) Act to venture into the stock market. One interesting scenario involved investing in Tesla Motors (NASDAQ: TSLA), as analyzed by Finbold.
On April 13, 2020, when the CARES checks were distributed, TSLA stock opened at $39.34 and closed at $43.40. If an investor had purchased approximately 28 shares at the end of that trading day, it would have cost $1,200. As of the current stock price of $174.77, those 28 shares would be valued at $4,893.56, representing a growth of 307.80% or $3,693.56.
While the investment would have significantly increased between April 2020 and June 5, 2024, holding onto the stock until now may not have been the most profitable choice. Selling the 28 shares at peak prices exceeding $400 in November 2021 could have turned the $1,200 stimulus check into nearly $11,500.
Despite Tesla’s integration of artificial intelligence (AI) technology, the stock has faced a notable decline in the market, with a 22.36% decrease over the last 12 months. In 2024, the company’s performance has been lackluster, with the stock down 29.75% year-to-date (YTD) despite a brief rally in late April.
It is essential to note that the information provided in this article is not investment advice, and investing always carries risks.
