Tesla Dividend: Will They Ever Pay Investors?

The appeal of growth stocks is that they have the potential for huge returns.

Consider the massive rally by Tesla, Inc. (TSLA); in just the past three years, the stock has returned over 1,300% to shareholders.

That’s a lifetime of returns and more for many investors, and Tesla has done this in a very short period of time.

Business Overview

Tesla was founded in 2003 by Elon Musk. The company started out as a fledgling electric car maker but has grown at an extremely high rate in the past several years.

Amazingly, Tesla’s current market capitalization is more than seven times the combined market caps of auto industry peers Ford Motor (F) and General Motors (GM).

Tesla is off to a good start to 2022.

Growth Prospects

Tesla’s primary growth catalyst is to expand sales of its core product line, as well as generate growth from new vehicles.

Companies like Apple (AAPL) and Cisco Systems (CSCO) have initiated dividends in the last decade because their shareholder bases demanded a dividend, and their business models generated consistent free cash flow.