If I’d invested £1k in Tesla stock at the start of 2022, here’s how much I’d have now

It goes without saying that 2022 will not go down as a vintage year for most markets and most investors. Even so, the downfall of the electric vehicle giant Tesla (NASDAQ: TSLA ) stock has been sobering.

So, how much (or how little) would I be making now if I invested in early 2022?

And could it get worse in 2023?

Darling market for falling stars

As I type, Tesla stock is down 70% year-to-date. So, if I had £1,000 of my hard-earned cash at the start of 2022, I would now only have £300 or so.

This is a rough estimate as it will depend on other factors. This includes how much commission I pay to the online broker. However, no amount of mental gymnastics can change the fact that this is a terrible result.

To rub salt in the wound, Tesla doesn’t pay dividends. That’s understandable for growing companies, but that means investors aren’t getting paid for being sick.

I think the only bright spot is that the share price gained during the pandemic has not been completely wiped out. At least for now.

Is there anything worse?

Fortunately, I am don’t have a direct Tesla slice. However, I have a fair amount of my Stocks and Shares ISA invested Scottish Mortgage Investment Trust. It has been (and remains) a huge backer. So, this must not be just a dim thought experiment on my part.

Is the worst over yet?

Probably not. Although the company’s value has fallen along with other growth stocks due to rising interest rates, it’s still far from cheap. Rates rise again in 2023, coupled with signs of a slowdown in demand could see more bond investors.

The growing power of competitors is another potential headwind. While Tesla has clearly stolen a march on the competition, I think it’s dangerous to lose the crown. In fact, it seems fair to consider the company’s moat (and margins) will tested in the next few years as more money is thrown into the EV sector by other manufacturers.

In addition to all this, there is an unpredictable CEO in Elon Musk. Asset or liability? As a humble private investor, I’m still on the fence.

Opportunity of a lifetime?

On the flip side, Musk has the form to change. He could do the same again, assuming he refocuses his abilities on Tesla after finally stepping down as Twitter leader.

In addition, Tesla is clearly different from many ‘winners’ in the pandemic era. It is on track to generate more than $100 billion by 2023 and has a brand that is in demand. A penny stock ‘hit and hope’ is not. Indeed, the stock price may be many times what it is now in a few years.

However, while it lasts, I will continue to give money to the trust managed by Baillie Gifford. By spreading my money across multiple disruptive companies instead of just one, I keep my risk down. I’m losing sleep because my portfolio isn’t worth it.

Whether Tesla will decline again in 2023 or perform an explosive rebound is open to debate. But the next 12 months will certainly not be boring.