What's it like to make more than $110 billion in five weeks on just one S&P 500 stock? Ask the largest owners of Tesla stock.
The top 10 largest holders of Tesla stock, including top ETF and mutual fund providers like Vanguard and BlackRock plus the Technoking Elon Musk himself, are collectively up $117 billion since the stock doubled from its 52-week (intraday) low on Jan. 6, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSmith.
That means just 10 investors made more on one stock — Tesla — in roughly five weeks than all investors made on 496 individual S&P 500 stocks during the same time. That's crazy money.
The run on Tesla stock is prompting some to toss out the "bubble" word. "Tesla's recent price cuts are a display of pricing power, cost superiority and could increase demand — but it could also negatively impact Tesla's future profitability," said Oktay Kavrak, product strategist at Leverage Shares.
Tesla's Run-Up Is One For S&P 500 History Books
It's not often to see so much value get created by a single stock so fast. But that's the story of the S&P's bounce this year following last year's beatdown.
Shares of Tesla are up more than 105% from their 52-week intraday low on Jan. 6. And they're up more than 85% from their closing price that day. That means all Tesla investors are up $305 billion from that low day's closing price. That's more of a market value gain than all but two other individual stocks in the S&P 500.
Yes, Apple is up more than $361.9 billion since then. And Microsoft is too, up $348.8 billion. But on a percentage basis, they're only up 18% and 21% respectively, or nowhere near Tesla's percentage gain.
And that's why some bubble talk is starting to perk up (although shares are still 46% below their 52-week closing high). Tesla closed Tuesday at 209.25. At that price, Tesla stock is already nearly 9% past the 192.63 a share analysts think it should be worth in 12 months.
Big Wins On Tesla
No investors are making as much money in this year's Tesla rally as Musk himself. Musk still owns 13% of the electric-car maker, more than anyone else, a lucrative move in 2023.
Musk has gained $40.7 billion in paper wealth on just his stock this year alone. No one comes even close. But Vanguard, the top holder of two-thirds of S&P 500 stocks, is bringing its ETF and index mutual fund investors along for the ride, too. The fund company's 6.9% stake in Tesla has gained nearly $21 billion in wealth on its position.
And rounding out the top three winners in No. 3 spot is BlackRock. The fund company's 5.6% stake in Tesla added more than $17 billion in market value just this year.
But while bears think Tesla is running too far, too fast, some mega-bulls exist. The most optimistic forecast for where Tesla stock will be in 12 months is 320 a share. If that's right, Tesla still has more than 53% upside from Tuesday's close.
That's not as impressive as the stock's run in the past five weeks, but none of these top Tesla stock investors will likely complain.
Big Tesla Investors Make A Fortune This Year
| Holder | Company owned | Market value gain ($ billions) |
|---|---|---|
| Musk, Elon | 13.3% | $40.7 |
| Vanguard Group | 6.8 | 21.0 |
| BlackRock | 5.6 | 17.2 |
| State Street Global Advisors | 3.1 | 9.6 |
| Capital Research and Management | 3.0 | 9.4 |
| Geode Capital Management | 1.5 | 4.6 |
| T. Rowe Price Group | 1.4 | 4.5 |
| Ellison, Lawrence | 1.4 | 4.3 |
| FMR | 1.1 | 3.3 |
| Norges Bank Investment Management | 0.8 | 2.6 |
Sources: IBD, S&P Global Market Intelligence
Follow Matt Krantz on Twitter @mattkrantz
