Tesla Dividend: Will it Ever be Paid and is it Worth Investing?

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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.

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Over time, any company – even Tesla – could make the decision to start paying dividends to shareholders, if it becomes profitable enough.

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Even with Tesla’s huge run-up in share price, whether a company can pay a dividend depends on the underlying fundamentals.

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While many growth stocks have made the transition to dividend stocks in recent years, it is doubtful Tesla will join the ranks of dividend-paying stocks any time soon.

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Business Overview

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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.

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Tesla has a current market capitalization above $700 billion, making it a mega-cap stock.

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Tesla has a growing lineup of different models and price points and is looking into expanding that lineup further to become a full-line automaker.

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Growth Prospects

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

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