<div id="readability-page-1">Companies that challenge the status quo can reap huge rewards. This is precisely what Tesla (TSLA 7.21%) has done. In an effort to drive the world toward sustainable energy, the business has developed a fleet of popular high-performance electric vehicles (EVs). Consequently, Tesla has disrupted the global auto market. Shareholders have gained tremendously, despite a volatile ride. If you'd invested $500 in this EV stock five years ago, here's how much you'd have today. <div><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MzI2NzMvNC10ZXNsYXMtaW4tYS1wYXJraW5nLWxvdC1hdC1hLWNoYXJnZXItc3RhdGlvbi5wbmcmdz03MDA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="420" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MzI2NzMvNC10ZXNsYXMtaW4tYS1wYXJraW5nLWxvdC1hdC1hLWNoYXJnZXItc3RhdGlvbi5wbmcmdz03MDA"/>Image source: Tesla. </div> <h2>Buying what Musk is selling</h2> Tesla has registered monster growth throughout its history. This key factor is what has propelled the stock to new heights. Shares have accelerated 185% higher in the past five years (as of Sept. 10). This would've turned a $500 starting sum into $1,424 today. This is despite the fact that the stock currently trades 28% below its peak from December 2024. Anyone who follows the business knows that the market buys what founder and CEO Elon Musk is selling. Yes, Tesla sells well-designed and tech-forward EVs. Based on the stock's incredible performance, however, investors are convinced that the company will one day find huge success with autonomous driving and robotics. This could boost Tesla's finances. <h2>Tesla: Back to reality</h2> Introducing a global robotaxi fleet or selling lots of humanoid robots to customers is far from a certainty, though. But Tesla shares, which trade at a nosebleed price-to-earnings ratio of 201, reflect flawless execution in the years ahead. It's safe to say that the stock is overvalued. And this is at a time when the company is struggling mightily. Revenue is down. In August, Tesla's market share of new EV sales in the U.S. was the lowest since 2017. And margins are taking a hit. Investors can't complain about the trailing-five-year return. However, the next five years might not be so kind. </div>

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Tesla has seen significant growth, with shares rising 185% over the past five years, turning a $500 investment into $1,424. Despite this, the stock is currently 28% below its peak and is considered overvalued with a high price-to-earnings ratio of 201. The company faces challenges, including declining revenue and market share, raising concerns about future performance.

- Tesla has disrupted the global auto market by developing high-performance electric vehicles, leading to significant shareholder gains.  
- Despite a 185% increase in stock value over the past five years, the company faces challenges such as declining revenue and a reduced market share in the U.S.  
- The stock's high price-to-earnings ratio suggests it may be overvalued, raising concerns about future performance amid current struggles.

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If You'd Invested $500 in Tesla 5 Years Ago, Here's How Much You'd Have Today