Tesla is more than a car manufacturer, it is one of the most innovative and interesting companies in the world, armed with a vision that is similar to Ford in the early decades of the previous century and Apple Computers in the 70s. It’s not surprising that many investors around the world have a special interest in the company, its stock, and its CEO. Of course, we cannot mention Tesla without mentioning its CEO, and founder, Elon Musk.
Tesla is an American company involved in manufacturing electric vehicles, solar panels, and provide clean energy solutions. Given Tesla’s success so far, the company attracts lots of attention from the media and has a large number of dedicated fans. As a result, Tesla’s stock price has been on a wild ride since its initial public offering on June 29, 2010.
Tesla is considered by many to be ahead of competitors in the industry in many regards. The company is leading the race toward building the first fully self-
In this article, we explore whether you should invest in Tesla stocks, outline the pros and cons of investing in Tesla, and recommend three top brokers from whom you can buy Tesla stocks.
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Buy Tesla Stock in 3 Quick Steps
In case you don’t have time to read our full guide, follow this quick 3-step to buy Tesla stocks right now.
Step 1: Create an Account
You'll want to choose a broker that gives you access to shares listed on the NYSE.
Step 2: Add Funds
Deposit funds into your account by bank transfer or credit card.
Step 3: Buy Tesla Stock
Search for ‘TSLA,’ choose how many shares you want, and click ‘Buy.’
Where to Buy Tesla Stock?
Tesla is listed on the NASDAQ exchange, which means you’ll have to find a broker that connects you to the exchange or an online CFD broker that makes it possible to speculate on Tesla’s stock price. Therefore, before you can buy Tesla stock, you’ll need to open a trading account with a licensed regulated online stock broker. Below, we have the top three brokers that currently offer Tesla stock.
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How to Buy Tesla Stock from eToro
There is quite a large number of brokers that allow you to buy Tesla, however, we find eToro to be a better option due to its unique social trading and copy trading features, the user-friendly platform, and the regulatory licenses the broker has obtained (FCA, CySEC, and ASIC).
There are a few simple steps you should follow to complete your first Tesla stock purchase. Keep in mind that you can also short-sell the Tesla stock and make a profit from a decline in the stock price.
Step 1: Search for Tesla stocks
Assuming that you have completed the account creation process, the next step involves logging into eToro’s trading platform and find Tesla stock. Simply type ‘Tesla’ or ‘TSLA’ at the search bar and click on the trade ‘Trade’ button.
eToro is a different trading platform in the sense that it offers a unique page for any financial instrument. As you can see, on the Tesla stock page, you will be able to get access to the price chart, important stats about the stock, Twitter feed, and research tools such as market sentiment, analyst recommendations, and more.
Step 2: Click on ‘Trade’
Once you are ready to buy (or short-sell) Tesla, click on the ‘Trade’ button.
Step 3: Set-Up a Market Order and Buy Tesla Stock
Next, you’ll have to insert the necessary parameters in order to send an order to the market. These include the amount you want to invest in the trade, the order type (market order/limit order), the leverage ratio, and the stop-loss and take-profit orders.
Click the ‘Set Order’ button to complete your order.
Why Invest in Tesla?
The Tesla stock is very volatile and unpredictable, mostly because its stock price is more sensitive to developments in the market, economy, politics, and consumer behavior. Even though Tesla has announced a surprise profit in the first quarter of 2020, Tesla has a futuristic approach rather than focusing on an instant profit. Here are some of the reasons as to why you should invest in Tesla:
Huge Growth Potential
Tesla generated $24.6 billion in revenue in 2019 and started 2020 on the right foot in spite of the negative economic impact of COVID-19. Regardless, many investors are looking for companies at early stages such as Tesla, that can end up by making high long-term returns, particularly when you consider the relatively small market share of Tesla and the huge growth potential if Tesla continues to expand to new markets and regions in the world. Evidently, the company makes huge efforts to expand to other countries – mostly to European countries and China.
Tesla has been perceived by many as a company that knows how to grow. For those of you who are not familiar with Tesla, it has literally zero budget for advertising and remains one of the most interesting companies to follow for the next few years.
A Long Term Vision
Over the past few years, Tesla has outlined its goals and convinced many that the company’s vision is different than most companies out there. Obviously, Elon Musk has contributed to forming Tesla’s vision. Since its foundation in 2003, Tesla’s main goal has been to speed up the world’s transition to a sustainable clean energy future including electric cars, solar panels, and producing clean energy solutions.
Model Y and Cybertruck
The upcoming Model Y and Cybertruck models are expected to push Tesla one step forward. Although the futuristic-like Cybertruck has been called by some as one of the ‘ugliest’ cars ever made, others believe that the Cybertruck is revolutionary. So far, the estimations for pre-orders of the Cybertruck stands on around 535,000.
The Model Y is expected to be Tesla’s top seller in 2020 as well as in the upcoming years.
Tesla Self-Driving Autonomous Cars
There is no doubt that autonomous vehicles will be a significant part of the future. The only question, who might be the first to sell these cars to retail clients. It might be Tesla. In fact, Tesla is one of the top car manufacturer or tech companies to lead the race, most likely following Waymo of Google and General Motors Cruise vehicle.
Tesla’s vehicles should be able to achieve full self-driving capabilities within the next few years. Meanwhile, Tesla develops advanced self-driving features such as the Advanced Sensor Coverage, neural net for vision, sonar and radar processing software, and the autopilot advanced safety and convenience features.
About Tesla Stock
Tesla Company Background
Tesla was founded on July 1, 2003, in San Carlos, California, United States by Martin Eberhard and Marc Tarpenningn who believed that effective electric vehicles can replace traditional gasoline cars. Originally, the company was named Tesla Motors after the famous inventor and electrical engineer Nikola Tesla, and only changed its name to Tesla Inc in 2017.
In 2004, Elon Musk has joined the company and became the chairman of Tesla Board of Directors after investing 30 million dollars. Since then, Elon Musk is the face of Tesla and considered by many to be one of the most influential minds of this century. Musk also gets a constant comparison to Steve Jobs, Bill Gates, and Henry Ford.
The Roadster was the first vehicle Tesla has manufactured and was sold to the public from 2008 to 2012. However, Tesla was not a successful company at that time and its IPO in 2010 was a savior for the company after Tesla has raised $226 million. The Model S was the next car Tesla has produced and marked the beginning of the success of the company. Since then, Tesla has expanded the range of products. In 2012, Tesla introduced the Supercharger network – freestanding charging stations for Tesla Motor vehicle owners. At the time of writing, the company operates around 12,000 superchargers at 1,400 stations worldwide.
Apart from Tesla electric cars and the Supercharge network, Tesla has expanded its services to solar energy products like solar roofs, solar panels, electric batteries, and clean energy storage. In 2019, Tesla unveiled the CyberTruck, the first pickup truck made by Tesla with an exterior shell and ultimate protection for passengers.
Remarkably, Tesla’s stock has doubled its price since a sharp drop in March that was likely to be caused by the Coronavirus pandemic. On March 18, 2020, Tesla shares fell to around $360 before rebounding all the way back up to $780. Tesla stock has reached an all-time high of $901 on February 21, 2020, and currently, analysts’ ratings are mixed between “buy” and “hold” with price targets are ranging from $440 to $925.
More importantly, Tesla has recently released its Q1 2020 earnings report and for the first time since its foundation, the company reports a Q1 profit of $16M. Furthermore, Tesla has ended the first quarter of 2020 with $8 billion in cash, a rise from $6.3 billion at the end of 2019. In a way, 2020 so far signals the continuation of Tesla’s extraordinary growth in 2019.
The technical analysis of Tesla’s stock signals a ‘buy’ and ‘strong buy’ recommendation, mainly due to the latest surge in price since March.
The Tesla stock is very volatile and unpredictable. Unlike other stocks that can be valued on fundamentals with more clarity, Tesla stock has a price movement that is similar to extremely volatile assets such as bitcoin and Apple stock.
What Else Should I Know About Tesla?
Tesla has a market capitalization of around $144 billion, which makes Tesla bigger than Ford Motor Co., Honda, and General Motors all together. That raises the question of whether Tesla stock is overvalued or investors are pricing the company based on its growth prospects.
You should keep in mind that 85% of the company’s annual revenue comes from the sale of electric vehicles, which means that Tesla is mostly dependent on car sales to generate revenues. Globally, Tesla sold between 367,000 and 368,000 electric vehicles in 2019, making Tesla the leading electric vehicle producer in the world.
But one thing is for sure, Tesla has a quite significant advantage over its competitors when it comes to battery technology. Tesla’s batteries are much more effective and bigger than those of other manufacturers, whether the batteries are used for electric vehicles or clean solar panels. Moreover, some experts say that Tesla’s electronic components and technology are ahead of any competitor in the industry.
Should I Buy Tesla Stock?
Tesla only turned profit recently but that does not necessarily mean that the stock will continue to rise or fall. In fact, Musk recently said that Tesla’s stock price is too high, however, Musk’s comment is not a real indication of the company’s value.
Generally speaking, Tesla’s stock is a phenomenon and should be on your watchlist at all times. Right now, Tesla stock is not so far from its all-time high, which wasn’t that long ago, and with the recent positive reports and the hopes of an economic recovery, Tesla’s stock has the potential to continue trading above its all-time-high record. As of Nov 5, 2020 – analysts are forecasting a 12 month price target of $355.60 per share for Tesla stock.
Tesla is the largest electric vehicle company in the world and is on the race to become the first company to release an autonomous self-driving car to retail clients. Moreover, Tesla has a unique vision and an approach that might solve some of the most serious issues currently threatening humanity such as the shortage of fossil fuels and climate change.
Nevertheless, Tesla is a risky stock, and therefore, you must find the right time to buy the stock (and the right broker), even if it’s a long term investment.
Whenever you’re ready to buy Tesla stocks, be sure to use one of our recommended online brokers so you get the most out of your trading experience.
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How much were Tesla stocks originally?
Tesla went pubic on June 29, 2010, and offered 13,300,000 shares of common stock at a price of $17 per share.
How much could you make if you have invested $1,000 in Tesla's IPO?
Investors who have invested $1000 in Tesla at its IPO could make a profit of $44,703 at the current price of $780.04.
What is the ticker symbol for Tesla stock?
Tesla stock is listed on the NASDAQ stock exchange and is traded under the ticker symbol 'TSLA.'
Does Tesla pay dividends?
No, Tesla has never paid dividends to its shareholders nor the company anticipates to pay dividends in the near future, which is a typical business structure for companies that are built on long-term growth.
Is Tesla a profitable company?
Tesla has never had a profitable year yet but the company finished 2019 with back-to-back profitable quarters and announced a profit in the first quarter of 2020 of $16 million.
What is the market cap of Tesla?
At the time of writing, the market capitalization of Tesla is around $144.6B.