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How To Buy Tesla Stock

Opening a brokerage account is your key to buying and selling securities, like stocks, mutual funds and exchange-traded funds (ETFs). A brokerage is more than just your ticket to ride TSLA to the moon, though. It also has all the research and education you need to be a successful investor as well as different types of investment accounts designed for particular goals.

how to buy tesla stock

You may also turn to experts for their input. Brokerage companies frequently put out commentary on major stocks and industries, and third-party evaluators like Morningstar provide comprehensive analysis.

Tesla has never declared dividends on our common stock. We intend on retaining all future earnings to finance future growth and therefore, do not anticipate paying any cash dividends in the foreseeable future.

Tesla acquired SolarCity to create the world's only vertically integrated sustainable energy company that offers a complete portfolio of residential, commercial and grid-scale products that enable customers to generate, store and consume energy entirely sustainably, through a suite of integrated products that add aesthetics and function while reducing cost. More details on the rationale behind the acquisition can be found here: -and-solarcityInvestor Presentation -teslas-combination-solarcity -and-solarcity-combine

In March 2022, the company announced plans to request stockholder approval for an increase in its number of shares at Tesla's upcoming annual meeting, which would enable the automaker to split its stock again. That three-for-one split took place in August.

To many consumers, Tesla Inc. is synonymous with electric cars and the broader clean energy movement. On Wall Street, Tesla's stock is often among the most actively traded stocks, with millions of shares changing hands each day. The stock is listed on the Nasdaq stock exchange under the ticker: TSLA.

In December 2020, Tesla joined the S&P 500, debuting as the then-fifth largest member and largest ever entry for this key stock index. Tesla is also in the tech-heavy Nasdaq 100 index. The carmaker is classified in the consumer discretionary sector and grouped alongside other consumer-focused companies like restaurants or retailers.

In fact, investing in Tesla may be best accomplished by buying a mutual fund or ETF that invests in this stock. That way, you can benefit from Tesla's gains (along with a broader swath of companies), ensure your portfolio is diversified (thanks to a mix of various stocks), and avoid risks associated with investing in individual stocks.

If you are new to investing, start by buying index funds and building a diversified portfolio that includes stocks, bonds, mutual funds, ETFs and alternative assets. Because individual stocks often are more volatile than the overall market, you should limit your exposure to any one stock.

Buying stocks in just one company can leave you more exposed to unexpected swings in the market than if you have a range of investments otherwise known as a diversified portfolio. Experts generally recommend having a broad mix of assets and funds on the basis that drops in the value of some will be offset by rises elsewhere.

Valuing Tesla stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Tesla's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

As of March 6, 2023, the cost of 1 Tesla share was $193.81 (USD). Many online brokers offer zero commission or fractional stock trading, so make sure you compare brokers to find the right one for you.

Tesla has long been a popular stock. The company, led by Elon Musk, has revolutionized the automotive industry with its offering of futuristic electric vehicles. And despite numerous price swings, it has seen quite the surge in value since the stock's public debut in 2010. In fact, its 10-year average annual return is currently more than 65%.

Brokerage accounts are digital vehicles that allow you to purchase investments like stocks, ETFs, options, bonds, mutual funds, and more. You can invest in Tesla through taxable individual or joint brokerage accounts. You can also use IRAs, though retirement accounts might not be the best move for the stock due to its volatile nature.

Quick tip: You don't have to solely rely on Tesla stock to get a piece of the company. You can also invest in index funds containing Tesla (e.g., the Vanguard 500 Index Fund (VFIAX) or Fidelity MSCI Consumer Discretionary Index ETF (FDIS).

"An index fund that houses Tesla shares may provide you with greater diversification because you are purchasing a basket of stocks rather than just Tesla stock," says Kirby. "This could be an advantage or a disadvantage and depends upon your appetite for risk and your investment timeframe, as well as the future outlook for Tesla stock versus the other stocks held in the index fund."

If you're thinking of investing in Tesla stock, you can buy shares without commissions, depending on the brokerage you choose. Plus, as of November 29, 2022, its current value sits at more than $180. If this price is too much per share, you can purchase portions of the full share price. For instance, once you reach the point of placing an order, you can select a dollar amount to invest in Tesla, as opposed to a share amount.

In addition, Tesla has a proven record of volatility, so it may not be best for investors in search of a fairly stable asset, nor is it likely a good idea for someone close to retirement. Generally, Tesla stock best suits those who can endure drastic movements in share price.

There isn't a one-size-fits-all initial investment amount when it comes to purchasing shares of a stock for the first time. Both the investment amount and number of shares will vary according to each trader's personal finances, risk tolerance, investing goals, and time horizon.

When investing in a stock for the first time, Kirby explains, it's important to remain mindful of the stock's risk as well as its potential for gain or loss. "Be sure you do not allocate too much of your portfolio to one stock," she says. "We typically advise no more than 5% of your total investable assets to one individual stock."

Unless you're day trading, you don't necessarily have to (nor should you) monitor your stock's price around the clock. But it's important to regularly check in on its performance while developing a wealth-building strategy that aligns with your financial situation and investing goals.

These simple steps can help you maintain your investment and see it generate returns, although it's important to understand that your stock's value will likely fluctuate due to factors beyond your control.

If you're buying Tesla stock for the first time, you'll need to set up a brokerage account to get started. It's also wise to do your due diligence on Tesla's financials and performance before deciding whether the company is a good fit for your risk tolerance and investing goals.

While you can purchase shares of the company either directly, through individual stock, or indirectly through index or mutual funds that contain Tesla, it's nonetheless important to trade with a strategy that both suits your skill level and goals and preserves your emergency fund and budget.

By November 2021, Tesla shares reached another milestone, rising over $1,200. But investors demonstrated concern again in April 2022 when Tesla stock fell 12% after Twitter approved a $44 billion acquisition deal from CEO Elon Musk. If approved, the deal could put Musk in charge of Tesla, SpaceX and Twitter.

A higher credit rating will allow Tesla to access the debt market on more favorable terms should it choose to do so to accelerate its growth. Tesla's credit upgrade might also boost its standing among more risk-sensitive investors, which could increase demand for its stock and help to drive its share price higher.

While it is foolish to predict the market's specific future, it's probably safe to deduce that Tesla's (TSLA 6.24%) stock is benefiting from these tailwinds. And I'm pretty confident asserting that the automaker's company-specific advantages will help it outperform the market over the long term. Here are three reasons why.

With a market cap of $623 billion, Tesla is not a small company. In fact, it's worth more than every other American automaker combined. From a valuation perspective, the stock's forward price-to-earnings (P/E) multiple of 48 is significantly higher than those of traditional rivals like Ford Motor Company or General Motors, which have P/Es of 7.5 and 6.7, respectively, despite large sales volume and an ambitious transition to EVs. Still, Tesla's valuation isn't as astronomical as it seems on the surface.

After soaring 58% year to date, Tesla stock is no longer as cheap as it was at the start of 2023, leading analysts like Morgan Stanley's Adam Jonas to conclude that investors may have missed their "window of opportunity" to buy the stock at a compelling valuation. But a long-term investment strategy is the key to sustainable returns in the stock market. And despite the higher price tag, Tesla still looks like a buy when considering where it could be 10 years from now (and not just 10 months from now).

One of the most polarizing stocks in today's market is Tesla (TSLA 6.24%). Bears will tell you it's just an over-valued automaker, while the bulls will claim it's a technology company that makes cars. In reality, it's a mixture of these things, but investors have to determine which case has more merit.

In 2022, the stock fell 65% -- giving the bears the performance they expected. However, it is already up 35% from the start of 2023 -- reinvigorating the bulls. So is this your signal to buy Tesla stock? Or has the stock (once again) run up too far and too fast? Let's find out.

For 2023, Tesla plans on achieving its 50% compounded annual growth rate of vehicle delivery since 2020, indicating about 1.7 million deliveries in 2023, or a 29% rise over 2022's numbers. Even with a slight gross margin compression, if Tesla can achieve its delivery goal, it will likely beat earnings estimates -- making the stock seem cheaper than it truly is. 041b061a72


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