Tesla Inc. (TSLA) has become something of a phenomenon in the automotive world. With a market cap of $1.6 trillion, it's the most valuable automaker on the planet, worth more than Toyota Motor Corp (TM), BYD Co. Ltd. (BYDDY) (BYDDF), and several other legacy manufacturers combined. But what does that mean for investors who got in a few years back?

Let's look at what would have happened if you'd invested $5,000 in the EV maker around Christmas 2020.

The Numbers: Then and Now

Back on December 24, 2020, Tesla stock was trading at approximately $220.59 per share. Your $5,000 investment would have bought you 22.66 shares in the company.

Fast forward to today, and based on Tesla's pre-market trading figure as of December 23, 2025, where the stock is trading at $490.49, that investment would be worth somewhere around $11,111. That's a positive return of over 122%, netting you a profit of $6,111 on your initial stake.

The journey hasn't been a straight line up, though. Over the past five years, Tesla hit a low of $101.81 on January 6, 2023, and recently touched a high of $498.83 on December 22, 2025. Anyone who held through that trough and back deserves some credit for their conviction.

The Sales Problem Nobody Wants To Talk About

Here's where things get interesting. Despite Tesla's massive valuation, the company has been reporting consistently declining sales this year. The latest figures from the European Automobile Manufacturers' Association paint a concerning picture: Tesla's year-to-date sales in Europe are down 28% compared to last year, with an almost 12% decline in November alone.

Meanwhile, rival BYD surged almost 222% in November. That's a brutal comparison.

What makes this even more puzzling is that electrified vehicles—including hybrids, EVs, and plug-in hybrids—are actually growing in Europe and now account for almost 63% of total car sales in the region. The market is expanding, but Tesla isn't capturing that growth.

Musk's Compensation: A Pay Package For The Ages

In November, Tesla shareholders voted overwhelmingly in favor of a trillion-dollar pay package for Musk. The package rewards him with compensation as the automaker hits crucial goals outlined by the Board of Directors. It's worth noting that Musk could still pocket billions of dollars by hitting some of the relatively easier targets, even without achieving all the milestones.

Then came another major development: a court in Delaware reversed its decision to void Musk's $56 billion pay package that investors had approved back in 2018. With that package now restored, Musk could gain over 18.1% stake in the company's expanded share base should he choose to exercise the stock options related to the 2018 compensation award.

Tesla scores well on momentum and quality metrics, though it offers poor value. The stock also has a favorable price trend in the short, medium, and long term. Whether that momentum can overcome the sales headwinds remains the billion-dollar question for investors looking at the stock today.