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We recently compiled a list of the 20 High Growth Mega Cap Stocks You Can Buy And Hold For Next 5 Years. In this article, we are going to take a look at where Tesla, Inc. (NASDAQ:TSLA) stands against the other high growth mega cap stocks.
Exactly 5 years ago, the world struggled to deal with a black swan event: the COVID-19 pandemic. There was so much uncertainty that people didn’t even know if they’d be alive in the next few weeks, let alone figure out where the market was heading. Anyone who invested in the S&P 5 years ago would have gained 83%. If you had bought at the exact bottom, you’d have gained twice that amount.
What the above proves is that the present isn’t necessarily an indicator of what the future holds. All companies that had their workflows disrupted have recovered, some more than others. Some companies have strengthened their supply chains. Others have improved their work-from-home capabilities. Industries like airlines and restaurants have modified their business models to cater to the new dynamics.
These companies have been able to deal with the changing dynamics because of their financial strength and innovation. A company’s past performance and its finances give a good idea of whether it will be able to survive bad times. That’s why when we look at the best mega-cap stocks to hold for the next 5 years, we look at how well they have grown in the last 5 years.
To come up with our list of top 20 mega-cap stocks to hold for the next 5 years, we considered stocks with a market cap of at least $200 billion and a 5-year sales growth rate of at least 10%.
Tesla, Inc. (NASDAQ:TSLA)
Tesla, Inc. (NASDAQ:TSLA) is a developer, designer, manufacturer, lessor, and supplier of energy storage & generation systems and electric vehicles. It operates through energy generation & storage and automotive segments. The company has grown its revenue by 34.02% over the last 5 years.
Elon Musk’s political shenanigans may be taking center stage right now but pretty soon the focus will switch back to how he plans to execute Tesla, Inc. (NASDAQ:TSLA)’s AI and robotics plans. Many believed his political influence would help him get the regulatory approval to get Tesla’s robotaxis on the roads and that is what’s about to happen in Austin, Texas. We may see Tesla’s robotaxis in Austin as early as June 2025 with a national rollout set for 2026, assuming initial success and regulatory approvals. The short-term triggers will continue to revolve around the launch in Austin this year.
We could also see Tesla’s Optimus robot in action this year as Musk continues to improve the AI offerings of his company xAI. Tesla, Inc. (NASDAQ:TSLA) has more cash than debt and with a leadership position in autonomous driving and robotics, it can easily fit into any portfolio.