This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Twenty years ago, life looked a little different. While cellphones were fairly common sights, it was nothing compared to what would happen in 2007 when Apple (NASDAQ: AAPL) introduced the first iPhone. With the numerous iterations of the iPhone that followed, as well as other innovations including the iPad and AirPods, Apple grew to become the first company with a $1 trillion market cap.

Those who had the wherewithal to scoop up Apple stock a couple of years before the iPhone's debut -- and who have held their positions -- have similarly seen their investments flourish.

What a difference an iPhone could make

Those who were cautious about investing in initial public offerings (IPOs), but who were also attracted to Apple stock, likely took their time after the company appeared on public markets in 1980. If they had bought $10,000 in Apple stock in July 1985 and kept their position for the next 20 years, they'd have recognized an impressive 304% gain that resulted in a position worth about $40,000.

On the other hand, investors who first bought Apple stock in July 2005 and have not trimmed their positions have recognized extraordinarily impressive growth. An initial investment of $10,000 20 years ago would now be worth about $1.546 million.

Will the next two decades provide the same growth?

Implementing a walled-garden approach, Apple has developed an ecosystem that contributes to its formidable competitive advantage among tech stocks. This, along with its fierce customer loyalty, has resulted in Apple evolving into an industry stalwart over the past 20 years.

Whether the company has any transformative tech innovation waiting in the wings remains to be seen. Similarly, it will take another 20 years before we can look back and see if Apple stock was able to replicate the performance it provided from 2005 through 2025. What is certain, however, is that Apple stock remains a worthy consideration for any investor seeking tech exposure.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Scott Levine has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Between Tesla (NASDAQ: TSLA) failing to meet the deadlines that Elon Musk sets and Musk's decision to split his time at Tesla with various other endeavors, many investors are losing confidence and questioning whether the stock can recover from its plunge in 2025.

But the actions of Tesla insiders are providing a clear indication. Two insiders have sold company stock -- a development that represents a glaring yellow light for those with shares of Tesla parked in their portfolios.

Some see Tesla stock powering ahead

From Cathie Wood, who thinks Tesla stock will soar to $2,600 over the next five years, to analysts at Wedbush, which has a $500 price target, plenty see Tesla stock driving in the right direction.

Some (like Wood) think the launch of Tesla's Robotaxi business, a fully autonomous ride-hailing network, will be a considerable boon for the company. Musk claims the company is making steady progress toward launching the service, providing some insight in a recent post on X:

For the past several days, Tesla has been testing self-driving Model Y cars (no one in driver's seat) on Austin public streets with no incidents.

A month ahead of schedule.

Next month, first self-delivery from factory to customer.

-- Elon Musk (@elonmusk) May 29, 2025

Others are encouraged by the news that Musk has chosen to refocus his attention on Tesla. Shares jumped last Thursday morning, for example, after investors learned that Musk had announced that he will be stepping back from his role in the Trump administration.

Bulls see the road ahead through a rose-colored windshield

At this point, I'm unconvinced of the bulls' viewpoint. The argument that the company's Robotaxi business will soon drive significant growth seems overblown. While the company has started testing driverless Robotaxis in Austin, there has been significant damage to the Tesla brand, and customers' eagerness to embrace Tesla's Robotaxi service doesn't seem as strong a possibility as it did just last year.

Plus, there is stiff competition from companies providing their own self-driving taxi services. In addition to Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Waymo and General Motors' (NYSE: GM) Cruise, Tesla faces competition from private companies like Wayve.

Another pothole in Tesla's road to recovery is the company's declining deliveries. In Q1 2025, Tesla reported deliveries of 336,681 vehicles, representing a 13% year-over-year decline. While there have been court rulings deeming President Trump's tariffs unlawful, it's not clear what the future will bring. Also, customer demand may have been diverted by other electric car options.

These insiders aren't convinced Tesla's charging forward either

Investors look all over for insight, but one thing they're particularly sensitive to is the trading activity of company insiders. When insiders buy stock, for instance, it's a pretty clear indication that they expect shares to rise in the near future. On the other hand, when they sell stock, it may mean that they see shares dipping in the near future.

Two prominent insiders have chosen to sell significant stakes of Tesla stock this week. Ira Ehrenpreis, who has served on the board of directors since 2007, sold 477,572 shares in a transaction valued at about $162,059,282, and Kimbal Musk, Elon's brother and one of the largest individual Tesla shareholders, sold 91,588 shares, totaling about $31,079,472.

Neither Ehrenpreis nor Kimbal Musk has offered an explanation, but it's possible the Robotaxi service isn't in such good shape as Elon suggests.

Is it a good time to hitch a ride with Tesla stock?

For some, there's not much more reading of tea leaves needed. Tesla's falling sales, the uncertainty around its Robotaxi service, and the recent insider transactions are all the material they need to decide it's best to watch Tesla stock from the side of the road.

For those still on the fence, there's also the stock's price tag. Shares are changing hands at 185 times forward earnings, a steep premium to the five-year average P/E of 95.5.It seems clear that it's best to keep Tesla stock at arm's length for the time being.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Scott Levine has no position in any of the stocks mentioned. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended General Motors. The Motley Fool Australia has recommended Alphabet. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Extending its 23%-plus climb during 2024, the S&P 500 started 2025 off with a bang, rising 2.7% in January.

And while some S&P 500 companies failed to keep pace with the index's gain, others soared. Representing a range of industries, the five top-performing S&P 500 stocks all rose more than 20% last month with Robinhood Markets (NASDAQ: HOOD) leading the pack.

1. Robinhood Markets (up 39.4%)

Investors hate uncertainty. So when they gained clarity into how the Securities and Exchange Commission (SEC) investigation against Robinhood regarding securities violations would resolve (Robinhood will pay $45 million in penalties), investors rejoiced, sending the stock soaring.

2. Twilio (up 35.6%)

Twilio (NYSE: TWLO) held its Investor Day on Jan. 23, and investors liked what they heard. The software company, which supports artificial intelligence developers, expects to generate positive operating income in 2025 and more than $3 billion in free cash flow from 2025 through 2027.

3. Constellation Energy (up 34.1%)

Days after the ball had dropped, Constellation Energy (NASDAQ: CEG) powered higher, when it announced its plan to acquire Calpine, an electric utility with robust clean energy assets. The utility stock soared 25% higher on the day of the news.

4. CVS Health (up 25.8%)

Inspired by a proposal from the Centers for Medicare and Medicaid Services that Medicare Advantage payments rise 4.3% on average, investors bid CVS Health (NYSE: CVS) stock higher. An analyst's positive take also contributed to the stock's movement. Evercore ISI hiked its price target to $65 from $60.

5. GE Aerospace (up 22%)

GE Aerospace (NYSE: GE) lifted investors' spirits when it reported strong financial results. Compared to Q4 2023, revenue and free cash flow climbed 14% and 21%, respectively, in the fourth quarter of 2024. The market also celebrated management's auspicious 2025 forecast that includes continued free cash flow growth.

Is now the time to buy these S&P 500 stars?

The top-performing S&P 500 stocks in January are industry leaders that are certainly worth further investigation. Potential investors should ensure that they match their individual investing goals.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Scott Levine has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Twilio. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended CVS Health, Constellation Energy, and GE Aerospace. The Motley Fool Australia has recommended Twilio. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Elon Musk is widely recognised as the largest shareholder of Tesla  (NASDAQ: TSLA) stock. However, current and prospective investors alike know he's not alone, leaving them to wonder about the bigger picture regarding who owns Tesla.

One of the most recognisable electric vehicle (EV) companies on America's highways and byways today, Tesla was initially focused on the luxury market. Its sole vehicle available to drivers was the Roadster, an electric sportscar that debuted in 2008.

In the years that followed, Tesla expanded its vehicle lineup to the Model S sedan in 2012 and the Model X SUV in 2015. Two years later, Tesla introduced the Model 3, an EV that sported a more affordable price tag. Rounding out the company's available vehicles, the Model Y, a compact SUV, started appearing on America's roads in 2020, while the Cybertruck debuted in 2023. Today, Tesla is developing the Semi, an electric semi-truck.

In addition to its automotive segment, Tesla's energy-generation and storage segment includes its business dedicated to the "design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives." The company offers its Powerpack battery for residential and commercial-scale applications, while its Megapack is suited for utility-scale energy-storage applications.

Who is the owner of Tesla?

Although there's no single owner of Tesla, Elon Musk is the largest owner of Tesla stock. The company, then called Tesla Motors, was founded by Martin Eberhard and Marc Tarpenning in 2003. Musk hitched a ride with the company shortly after it was incorporated, providing more than $6 million in 2004 during its Series A funding round.

At that time, Musk was appointed chairman of the company. Additionally, Musk made other investments in Tesla. For instance, he participated in Series B and Series C funding rounds before Tesla's initial public offering (IPO) in 2010.

Although he receives considerable attention as the CEO of Tesla — a position he's held since 2008 — Musk has his focus directed to the stars as well, serving as the CEO and chairman of SpaceX. Musk is recognised as one of the most accomplished entrepreneurs of modern times. In addition to founding SpaceX, Musk founded The Boring Company and Neuralink.

Reimagining urban transport, The Boring Company is attempting to alleviate city traffic by developing tunnel networks. Neuralink, on the other hand, is developing brain implants to help those who suffer from certain medical conditions. Early in his business career, Musk also achieved success as a co-founder of x.com, which eventually became PayPal.

Who are the largest shareholders?

Musk may be the person most closely identified with Tesla, but a number of individuals and institutions hold significant positions in the EV company. Let's take a look at the investors — both insiders and institutions — that represent the largest shareholders.

Individuals

1. Elon Musk: As the largest individual Tesla shareholder, Musk had 410,794,076 shares of common stock as of December 2024. Musk's position represented almost 13% of the outstanding common stock.
2. Kimbal Musk: The younger brother of Elon, Kimbal is the insider with the second-largest position in Tesla, owning 1,538,220 shares, or 0.05% of Tesla's outstanding common stock as of December 2024.
3. Vaibhav Taneja: Acting as Tesla's chief financial officer (CFO) since August 2023, Taneja had 108,965 shares of Tesla's common stock, approximately 0.003%, as of December 2024.
4. Tom Zhu: First hired at Tesla in 2014, Zhu has served as the company's senior vice president of automotive since April 2023. As of September 2024, Zhu owned 67,491 shares, about 0.002% of Tesla's common stock.
5. Andrew Baglino: Celebrating more than four years as the company's senior vice president of powertrain and energy engineering, Baglino owned 31,230 shares of common stock as of April 2024, representing about 0.001% of Tesla's outstanding common stock.

Institutions

1. Vanguard Group: Providing its services to more than 50 million investors, the Vanguard Group holds 239,621,388 shares of Tesla — representing an ownership stake of more than 7.5% — through several mutual funds, such as the Total Stock Market Index Fund Investor Shares, Institutional Total Stock Market Index Fund, and Vanguard 500 Index Fund Investor Shares.
2. BlackRock: With more than $10 trillion in assets under management, BlackRock holds its 194,744,293 shares — about 6.1% of Tesla's outstanding shares — in several investment vehicles, including exchange-traded funds (ETFs), like the iShares Self-Driving EV and Tech ETF and iShares U.S. Consumer Discretionary ETF.
3. State Street: The third-largest institutional owner of Tesla stock is State Street, with 111,709,189 shares — an ownership stake of more than 3.5% — in a variety of ETFs. Tesla has a major position in the Consumer Discretionary Select Sector SPDR Fund, for example, representing 18% of the ETF's holdings.
4. Geode Capital Management: Founded in 2001, Geode, which manages Fidelity Investments' stock index funds, has more than $1.1 trillion in assets under management. It owns 55,256,335 shares of Tesla stock, representing an ownership stake of more than 1.7%.
5. Capital World Investors: Helping investors build wealth since 1931, Capital World owns 59,356,401 shares — about 1.8% of Tesla's outstanding stock. Capital World offers the Capital Group Growth ETF. Tesla represents about 5.4% of the fund's holdings.

Who is on the board of directors for Tesla?

Helping to shape the company's direction, the board of directors has various responsibilities that ensure the company is well managed. Investors often pay close attention to people on the board of directors since their stock purchases or sales may provide insight into how the company is faring.

Elon Musk: A board member since 2004, Musk stepped down from his role as chairman in 2018 due to a settlement with the Securities and Exchange Commission (SEC), which had charged Musk with misleading investors through a series of tweets.

Ira Ehrenpreis: A Tesla board member since 2007, venture capitalist Ehrenpreis is an independent director who serves as the chair of two committees: the Nominating and Governance Committee and the Compensation Committee. Ehrenpreis is the founder and managing partner of DBL Partners, a venture capital firm.

James Murdoch: An independent director who has served on Tesla's board since 2017, Murdoch is a member of the Nominating and Governance Committee, Audit Committee, and the Disclosures and Control Committee. Previously, Murdoch had served in leadership roles for several media companies, including as CEO of Twenty-First Century Fox from 2015 to 2019 and CEO of Sky from 2003 to 2007.

JB Straubel: A Tesla co-founder, Straubel was the company's chief technology officer from May 2005 to July 2019, when he left to found Redwood Materials, a company specialising in recycling EV batteries and other lithium-ion batteries. Strauble rejoined the Tesla board in 2023. As of his latest SEC filing in 2019, Straubel had 276,398 shares of Tesla stock, although it's unclear whether he has engaged in further stock transactions since then.

Robyn Denholm: Beginning as a director in August 2014, Denholm, a venture capitalist, took over as chair of the board when Musk stepped down in 2018. As of Feb. 21, 2024, Denholm had 15,000 shares of Tesla stock. In addition to chairing the Audit Committee and Disclosure Controls Committee, Denholm is a member of the Nominating and Governance Committee and the Compensation Committee.

Joe Gebbia: Co-founder of Airbnb, Gebbia took a position on Tesla's board of directors in 2022. An independent director, Gebbia is a member of the Audit Committee.

Kimbal Musk: Since April 2004, Musk has served as a Tesla board member. An entrepreneur who has been a Tesla board member since 2004, Musk also serves as a director for another of his older brother's endeavours, SpaceX, where Kimbal has been a board member since 2002.

Kathleen Wilson-Thompson: For more than five years, Wilson-Thompson has served as a Tesla board member. An independent director, she is a member of several committees: the Nominating and Governance Committee and the Disclosure Controls Committee. From December 2014 to January 2021, Wilson-Thompson was executive vice president at Walgreens Boots Alliance.

How to invest in Tesla

Since its 2010 IPO, Tesla stock has sparked investor excitement. Whether you're just learning how to invest your money or you're old hat at investing in stocks, there's a strong likelihood that you've considered the advantages of buying Tesla stock.

For years, the stock has electrified both bulls, who believe the stock can drive considerably higher, and bears, who believe the stock is consistently overvalued and poised to plummet. Cathie Wood, for example, is one of the stock's most outspoken bulls. The ARK Invest ETFs hold about 4.6 million shares of Tesla stock, and Wood has argued that Tesla stock could drive to $2,000 by 2027.

For investors who find that the growth potential of Tesla stock revs their engines, buying shares is as simple as opening a brokerage account, funding the account, and clicking the buy button. On the other hand, others who are more circumspect about risk may prefer to gain Tesla exposure through an EV ETF.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Who owns Tesla? appeared first on The Motley Fool Australia.

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Scott Levine has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Airbnb, PayPal, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2027 $42.50 calls on PayPal and short March 2025 $85 calls on PayPal. The Motley Fool Australia has recommended Airbnb and PayPal. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Rising over 13% in 2024, the Dow Jones Industrial Average lagged the S&P 500, which soared 23%. But the diversity among the performances of the individual Dow Jones stocks was considerable.

While Boeing dragged the index down last year, Nvidia (NASDAQ: NVDA) took up the slack and was the best-performing Dow Jones stock of 2024. Let's take a look at the other names that rounded out the top-performing Dow Jones stocks.

1. Nvidia (up 171%)

From consistently surpassing analysts' expectations when it reported quarterly financial results to proclaiming that it continues to benefit from enthusiasm surrounding artificial intelligence (AI), Nvidia -- a new addition to the Dow Jones -- provided investors with plenty to get excited about last year.

2. Walmart (up 72%)

Walmart (NYSE: WMT) management had recognised the importance of expanding its e-commerce business to remain competitive, and its initiatives showed success in 2024 -- highlighted in the third quarter of fiscal 2025, ended October 25, 2024, when the company reported comparable sales growth of 22% and 43% for U.S. and international businesses, respectively.

3. American Express (up 58%)

Apple may be the largest holding in the Berkshire Hathaway portfolio, but American Express (NYSE: AXP) holds a prominent spot as the second-largest position. While Warren Buffett sold other financial stocks in 2024, he remained committed to American Express, a financial stalwart that provided investors with plenty of reasons to click the buy button last year.

4. Goldman Sachs (up 48%)

Goldman Sachs (NYSE: GS) achieved consistent year-over-year earnings-per-share (EPS) growth when it reported quarterly financial results last year, one of many reasons why investors chose to buy the banking stock.

5. Amazon (up 44%)

Failing to match its 167% gain in 2023, Amazon (NASDAQ: AMZN) stock still rose notably last year as investors chose it for its prominent position in AI as well as its commanding e-commerce presence.

Should you buy these Dow Jones darlings now?

While the top-performing Dow Jones stocks of 2024 are worthy of serious consideration, potential investors should certainly perform their due diligence to ensure that the stocks match their individual investing goals.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Scott Levine has no position in any of the stocks mentioned. American Express is an advertising partner of Motley Fool Money. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, Berkshire Hathaway, Goldman Sachs Group, Nvidia, and Walmart. The Motley Fool Australia has recommended Amazon, Apple, Berkshire Hathaway, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

While Nvidia (NASDAQ: NVDA) stock has soared in popularity as a way to gain artificial intelligence (AI) exposure, many investors aren't sure what the company does. Maybe they've heard of graphic processing units (GPUs), maybe they've heard of data centers, or maybe they've heard of AI. The exact nature of Nvidia's business, though, may remain shrouded in mystery.

One of the best ways to ensure investing success is to have a thorough understanding of what companies do before an investor clicks the buy button. Since Nvidia's business is more than just AI, it's worth taking a closer look at what it exactly does.

Nvidia in a nutshell

The company organizes its business in two segments: there's compute and networking, and there's graphics. Accounting for the lion's share of Nvidia's business -- 78% of revenue and more than 97% of operating income for fiscal 2024 -- the compute and networking segment is where Nvidia's AI exposure is located. The company's accelerated computing platforms, for example, help data centers manage the extraordinary computing demands of AI. According to the company, its data center solutions "can scale to tens of thousands of GPU-accelerated servers interconnected to function as a single giant computer."

Rounding out the company's business, the graphics segment includes the GPUs provided for varying markets, including gaming, professional visualizations (workstations), and automotive. For fiscal 2024, these three markets represented 17%, 3%, and 2% of revenue, respectively. While not as robust as the company's data center business, the gaming and automotive markets have represented some aspects of AI. Nvidia's GPUs, for example, are used in various types of autonomous vehicles.

Nvidia is a so-called fabless chip designer, relying on third-party foundries to manufacture and package physical products based on its semiconductor designs.

What's a better-informed investor to do now?

By designing industry-leading GPUs, Nvidia is at the forefront of the AI explosion. Its platforms are indispensable for data centers attempting to manage the tremendous computing demands associated with large language models and other sorts of generative AI.

Simply put, Nvidia is a leader in sophisticated accelerated computing. And for applications such as machine learning and AI, in general, accelerated computing is essential. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Scott Levine has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Finding itself among the many tokens that are rising today, The Sandbox (CRYPTO: SAND), a popular metaverse cryptocurrency, is also soaring today. But why are investors so eager to scoop up this token in particular? Apparently, the company is looking to raise funds, so investors may be speculating that the company has growth plans on the horizon.

As of 1:50 p.m. ET, The Sandbox's token has risen 9.3% over the previous 24-hour period.

So what

According to Bloomberg, The Sandbox, whose majority owner is blockchain game developer Animoca Brands, is interested in raising $400 million from current as well as new investors at a valuation of $4 billion. At the moment, The Sandbox has a market cap -- the market value of its circulating supply -- of $3.35 billion. 

Citing people familiar with the matter, Bloomberg is reporting that the size of the funding and the valuation are both flexible, predicated on market sentiment and investor demand. The company didn't respond to a request for comment.

Previously, The Sandbox had raised $93 million in Series B funding from SoftBank in November. In the related press release, The Sandbox stated that the funds it had raised would be used to:

[S]cale the platform's growth as a prime entertainment destination where brands, IPs, and celebrities can engage with their fans through virtual experiences, including games, live performances, and social experiences.

Presumably, the funding that it's currently seeking will be used for similar purposes. 

Now what

Among the companies seeking to flourish in the metaverse, The Sandbox is one of the more familiar names and its early foray into the space will likely prove advantageous as others are seeking to gain ground. For crypto-curious investors, this name is one to watch closely.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Scott Levine has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

According to Elon Musk, the time for Tesla Inc (NASDAQ: TSLA) to focus on profits has arrived. In a recently written email that was obtained by the EV news website, Electrek, Musk warned the company's employees that if Tesla's bottom-line doesn't reflect significant growth -- meeting the market's expectations -- investors will likely pump the brakes and send the stock plummeting.

In the email, Musk states:

When looking at our actual profitability, it is very low at around 1% for the past year. Investors are giving us a lot of credit for future profits, but if, at any point, they conclude that's not going to happen, our stock will immediately get crushed like a soufflé under a sledgehammer!

In addition, Musk pointed to the necessity of finding new ways to save money in manufacturing. Also from the email, Musk says, "[I]n order to make our cars affordable, we have to get smarter about how we spend money...A great idea would be one that saves $5, but the vast majority are 50 cents here or 20 cents there."

While the company has never reported positive net income on an annual basis, shares have skyrocketed approximately 1,160% over the past five years as investors drove up the stock on the belief that profits would come at some point down the road. Although Tesla reported its fifth consecutive quarter of profitability in Q3 2020, Musk appears to sense that shareholders are yearning for more.

Profits, undoubtedly, are important, but investors should also appreciate the company's growing cash flow. For the first time in the past decade, Tesla generated free cash flow on an annual basis, about 3.9% of revenue for fiscal 2019, according to Morningstar. On a trailing-twelve-month basis, this metric has accelerated to 6.5%.

Considering Musk's ample incentive package revealed in the spring, there should be little surprised that he's so concerned with Tesla's stock price.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Scott Levine has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.