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I'm pretty sure last Thursday (October 24) was close to 22%. Tesla (NASDAQ: TSLA) has pushed at least a few UK owners into ISA millionaire status, at least on paper.
Depressingly, I was not one of them. But it made me wonder if buying a piece of the electric car maker now will increase my chances of getting into that select group at some point.
Back with a bang!
After enduring a nasty drop in profits in Q2, Tesla bounced back in Q3. Earnings per share came in at 72 cents, beating expectations. Vehicle deliveries also rose 4% to nearly 463,000, surpassing the previous three-month period.
It wasn't a complete slam dunk from the Texas titan. Revenue came in at $25.18bn – slightly lower than analysts had expected.
But let's not split hairs. As the updates continue, I doubt many investors will be knocking on publicity-shy Elon Musk's door and demanding he pull his socks up.
Indeed, the market bought into the news and the stock price did its thing.
More to come?
Although that daily movement was bad, it is important to look at it in the right way.
Tesla stock is still up about 5% in 2024 as I type. And it's well below the record high — just over $400 — seen nearly three years ago. Whether it can quickly add another 60% or more from here to challenge that final number is open to debate. But if the company can overcome its 1.8m car delivery for 2023 and successfully bring new cars to market (eg, Model Y Juniper) in 2025, I think it's possible.
Trouble ahead
The point that sticks out to me is the potential flexibility along the way. It's easy to forget that this is the same stock that fell in early October following the botched launch of the firm's robot.
There are many other things to consider, including the US election.
We are not politically neutral at Fool UK. However, this doesn't mean that I can't speculate about whether Musk's endorsement of Donald Trump could have an impact on whether Democratic voters are interested in buying his cars in the future. On the other hand, it's easy to see why the recent plan to raise prices on Chinese EVs entering the US would suit Tesla.
Elsewhere, the S&P 500 is now up more than 20% since January and nearly 40% in 12 months. That makes sense considering that inflation has finally subsided and price cuts have begun. But even the most optimistic investor must be wondering if he needs to pause for breath.
Here's what I do
I can't deny that Tesla stock may continue to create ISA millionaires as it has helped six industry rivals so far.
But I also think there's a good chance I'll hit that seven-figure target by investing as much as I can in a range of quality stocks and funds on a consistent and long-term basis.
As techniques go, this is not speeding up or speeding up the heart rate. I don't think investing should be like that.
For now, I'm keeping my Tesla exposure to the few funds that suit my risk profile and allow me to sleep at night.
I still prefer to watch stock prices with a bag of popcorn in my hands.
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