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How To Invest In Tesla

By David Krug 8 minute read

Are you interested in purchasing shares of TESLA? Whether you’re a seasoned Tesla investor or a complete novice, here’s how to get started. Tesla is one of the most intriguing and sought-after stocks at the moment (TESLA). A lot of people are interested in the firm because of its unique goods and its vocal and a little bit quirky creator, Elon Musk.

How to invest in tesla? Tesla shares may be purchased if you’re interested in owning a piece of the corporation. To better understand how to invest in Tesla, let’s take a look at some of the details.

Overview of Tesla

A group of engineers founded Tesla, Inc. in 2003, and the company’s headquarters are in Palo Alto, California. Tesla Motors, the company’s original name, is derived from Nikola Tesla, a pioneering inventor, and creator of electricity.

The company’s primary focus has always been to produce electric vehicles that can compete with gasoline-powered vehicles. The carmaker features a variety of automobile types, including a crossover SUV and pickup truck. For years, the objective has been to make automobiles accessible to as many people as possible at an inexpensive price point, and this goal is finally being met to some extent. Tilburg (the Netherlands) and Shanghai (China) are two of Tesla’s current production hubs. In addition, a plant is now being constructed in Berlin, Germany’s capital.

Tesla is developing a self-driving car in addition to electric ones. In addition to generating solar panels and energy storage, Tesla has also diversified into green energy. Rather than relying on fossil fuels, the goal is to shift to cleaner sources of energy. In other words, if you’re looking for a way to invest in renewable energy, you might want to consider Tesla.
Elon Musk, Tesla’s current CEO, is also one of the company’s co-founders. Musk is also the CEO of SpaceX, a firm that builds rockets. Indeed, SpaceX is known for launching a Tesla Roadster into orbit. Musk is also working on initiatives related to high-speed public transportation and the development of brain-computer interfaces.

What you need to know about Tesla stock

Understanding a stock’s price history might be helpful when attempting to find out how to invest your money. You may be able to predict the future of a stock based on how it has fared in the past.

Tesla’s stock trades as TSLA on Nasdaq under the company’s initials. For the most part, Tesla’s stock price has been stagnant, although it has started to gather speed in recent years. Following a year of good increases, share prices have soared significantly in 2019. On June 28, 2021, Nasdaq’s 12-month price goal is $632.10, with an anticipated high of $1,080 and an estimated low of $67, according to Nasdaq data.

As of April 26, 2021, Tesla’s EPS (earnings per share) was $0.39, according to the most recent earnings report.

How much is Tesla stock?

Consider the fact that stock values fluctuate regularly during the day. Despite the fact that the market is open, stock values fluctuate constantly as investors buy and sell shares. The price of a stock rises when more people want to acquire it because of the increased demand. As a result, if demand declines, more people will attempt to sell their shares, causing the stock’s price to plummet.

It was trading at $419.07 per share as of the last trading day of the month of September 2020. This stock price does not accurately reflect Tesla’s pre-split highs in 2020, which were achieved prior to the stock split.

Tesla’s price before and after the stock split

The announcement of Tesla’s five-for-one stock split in 2020 was one of the most talked-about stories of the year. In essence, a corporation offers extra equity to existing owners through a stock split. Everyone who held one share received four more, bringing the total number of shares to five. On Aug. 28, 2020, if you held 100 shares in Tesla, you would have 500 shares on Aug. 31.

A full share of TESLA would have been beyond reach for most “ordinary” investors prior to the stock split. However, shares ended at slightly under $500 a share on the day of the stock split (Aug. 31, 2020).

To be clear, a stock split doesn’t really alter the company’s ownership or worth. Because of the stock split, the value of all of your shares will be nearly equal to what it was before the split. There will be fewer shares to compete for investors’ dollars, which will reduce their value. This means that more people can afford to invest in the stock market. First-time investors who don’t have a large sum of money to put into the market, such as yourself, may find this extremely helpful.

Tesla and the S&P 500

S&P 500 index inclusion was said to be on the horizon for Tesla as early as 2020 based on recent stock market gains. In spite of this, the board opted not to include Tesla in the index, even though it satisfied all of the fundamental requirements.

It may have been a contributing factor, according to CNBC, that Tesla’s stock has been so erratic. A big market capitalization and excellent profitability haven’t prevented Tesla’s share price from fluctuating widely. The market capitalization of a firm is the total worth of all of the company’s outstanding shares. Tesla has a $392 billion market capitalization. However, Tesla’s exclusion from the S&P 500 may be due in part to worries about the company’s high volatility and the possibility that its rapid development would come to an abrupt halt and reverse.

In spite of this, the company still has the potential for future growth. The firm and its goods have enough appeal to warrant some expansion. If the stock’s situation improves, it may be included in the S&P 500 at some point.

2 Ways to buy Tesla stock

There are two basic ways to buy shares in Tesla if you’re interested in learning about it. Due to TESLA’s public market listing, investing in the stock is a breeze. If you’d want to invest in Tesla stock, here are your options:

1. Open a traditional brokerage account

Traditional brokerage accounts are a good place to start. With Fidelity or Charles Schwab accounts, you may have seen this sort of account before. In addition, some of the older internet brokers, such as Etrade, are similarly comparable to traditional brokers in terms of their functionality.

When you create an account with a typical brokerage, you may utilize the trading platform to buy and sell stocks. Trading systems that allow you to transact practically instantaneously are available from many traditional brokers. Orders may be placed, and the platform will take care of everything else.

Despite the fact that these brokers are simple to use and frequently provide access to human help and investing advice, some investors may find that they are too much of a hassle. You may be required to make a substantial initial investment, depending on the broker. In addition, it might be tough to become acclimated to a strong but complicated platform.

Another thing to keep in mind is that buying a complete share might feel like a daunting job. Shares of TESLA are still trading above $400, despite the fact that they are no longer trading above $2,000 per (as of Sept. 30, 2020). In order to buy one Tesla share using dollar-cost averaging, you’ll need to save away at least $100 every week for a month.

2. Buy fractional shares

Fractional shares have been a popular way to invest in Tesla in recent years. Fintech businesses are proposing to sell you a fraction of a share in order to make it easier for you to invest in the stock market. The way fractional shares operate is that you can acquire a little piece of a company’s equity. As an example, if Tesla stock is priced at $400 a share, you might buy a quarter share for $100. When you employ fractional investment, you don’t have to wait until you can afford a whole share to begin investing.

Stash is one of the top investing apps that reached our list. The minimum investment in TESLA with Stash is just $1. (I’m an employee of Stash, which owns a stake in TESLA.) Stash, on the other hand, is a breeze to get started with. You may begin investing as soon as you fund your account, and there is no minimum balance requirement. The cost of using Stash varies based on whatever features you select.

Stash offers a banking solution that includes a debit card as one of its primary benefits, regardless of subscription level. You may earn Stock-Back® points when you use your debit card. As a result, rather than receiving a refund in cash, you actually gain fractional shares.
It’s possible to invest in other well-known and popular tech businesses like Amazon (AMZN), Apple (AAPL), Alphabet (GOOGLE), and Netflix through Stash in addition to Tesla (NFLX). Another option is to put your money into companies like General Motors (GM) or Ford (F). In addition to individual equities, a large range of exchange-traded funds (ETFs) are available for purchase.

Buying fractional shares isn’t the only option. Stash isn’t the only broker that provides simple access to fractional investments. Robinhood, for example, has a distinct set of capabilities. It’s possible to acquire cryptocurrencies like Bitcoin using Robinhood, for example In our Robinhood review, you can find out more.

Is buying Tesla stock the right move for you?

If you’ve learned how to invest in Tesla, you may ask if it’s one of the greatest stocks to buy. It’s time to think about whether or not purchasing Tesla is the appropriate decision once you’ve selected a brokerage that works for you.

Pros

  • As one of the most sought-after stocks, this one is highly sought for.
  • Deliveries of Tesla’s Model Y were on time and profitable in the company’s first quarter.
  • Increased interest in renewable energy might help other Tesla projects perform better in the future.
  • Elon Musk and his other futuristic endeavors are generating a lot of interest.

Cons

  • TSLA stock prices have been known to plummet in the wake of some of Musk’s more inflammatory remarks.
  • Production issues may arise in the future.
  • It is possible that Tesla’s stock will become more volatile in the future.
  • An individual stock purchase might be too costly.

Who should buy Tesla stock?

Consider your objectives and your portfolio’s potential fit with TSLA before making an investment decision in Tesla. If you’re looking for a stock that has the potential to go up in value, Tesla may be a smart choice. It’s also an excellent option for those who want a piece of Tesla’s future and are confident in the company’s ability to keep delivering cutting-edge goods.

Alternatively, you may be concerned about Tesla stock volatility or worried about the company’s long-term viability. You may not want to invest in TSLA if you want to own it for the long run.

You should think about how TSLA fits into your overall portfolio and financial objectives before making a decision. Look at the company’s long-term prospects and decide if this stock is suitable for a long-term hold, or if you want short-term gains before selling. Consider with a financial counselor or investing expert to see if Tesla is a suitable fit for you and your entire investment plan.

David Krug

Author