Tesla and SpaceX have been two of the most successful companies for long-term investors, with both of them sharing the same CEO.
However, most investors only had a shot to get into Tesla, with SpaceX planning for a 2026 IPO at an $800 billion valuation. It may shock investors that SpaceX is approaching a $1 trillion valuation, but it reflects how much Starlink and its other segments have paid off.
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Both investments could have made you rich if you held them for a few years, but there is a clear winner with recent returns that are out of this world.
Tesla Vs. SpaceX Stock Over the Past 5 Years
Tesla shares have roughly doubled over the past five years, which goes back to December 2020. Turning the clock back to pre-pandemic prices would yield a much higher gain, which we will see when comparing 10-year prices.
SpaceX positions are still very illiquid since it is a private company. However, the corporation had a $36 billion valuation in 2020, according to AI analyst Jim Harris on X. SpaceX’s ascent from $36 billion to $800 billion represents a 2,122% gain.
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Tesla Vs. SpaceX Stock Over the Past 10 Years
Tesla has produced a 3,050% return over the past 10 years, making it one of the top-performing stocks in the entire market. You would have to find moonshot venture capital investments to outperform that type of gain, but SpaceX happens to be one of the moonshots.
Musk’s “smaller” company was valued at $10 billion in 2015. The company’s value has mutiplied that more than 80 times from that level. If SpaceX has a strong showing in its IPO, the corporation can immediately open with a $1 trillion valuation.
Tesla Vs. SpaceX Over the Past 15 Years
Surely, Tesla stock must be the winner with its 22,435% gain during that stretch. Its split-adjusted price put it in penny stock territory in 2010, but sure enough, SpaceX still outperforms it. The space satellite company’s stock had a $163 million valuation in 2010. That’s an astounding 490,698% return over the past 15 years. A $10,000 investment in 2010 would have turned into $49.1 million.
Tesla and SpaceX have been two of the best companies for investors. Tesla was accessible to retail investors for the entire rally, while SpaceX has been private the entire time.
Should You Buy Tesla or SpaceX Stock?
Tesla is the only stock most investors can buy. SpaceX is still a private company, which makes it exclusive to a small number of investors. Investing apps like Robinhood may let investors buy SpaceX stock before its IPO, but even then, it’s really hard to tell.
Both companies have astronomical valuations but place their hopes in long-term tailwinds. It’s hard to create as many successful companies as Musk and be at the forefront of many technological innovations. It’s easy to forget that Musk was one of PayPal’s co-founders, given that he has been pioneering electric vehicles, self-landing space rockets and humanoid robots.
Both investments are only suitable for investors who can incur significant risks. Tesla’s five-year stock chart is the perfect example of the type of roller coaster investors are riding. Tesla had several 20% drops over the past five years and some spikes along the way. While some growth stocks have gradual upward gains with some corrections, Tesla has been quite volatile. SpaceX may follow the same path of volatility as investors balance high expectations with present economic conditions and developments.
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This article originally appeared on GOBankingRates.com: Tesla Stock vs. SpaceX Stock: Which Investment Could Have Made You Richer?
