Tesla Shares | How to Buy TSLA Stock _ Are you interested in investing in stocks? Then, you are at the right place. Today we are going to be unveiling all you may need to know about Tesla shares.
Are you READY for the exposition on this subject? I guess it’s a YES! Then let’s roll.
Tesla, Inc. is an American electric vehicle and clean energy company based in Austin, Texas. Tesla designs and manufactures electric cars, battery energy storage from home to grid-scale, solar panels and solar roof tiles, and related products and services.
Tesla is one of the world’s most valuable companies and remains the world’s most valuable automaker with a market capitalization of more than US $1 trillion. The company had the most worldwide sales of battery electric vehicles and plug-in electric vehicles, capturing 23% of the battery-electric (purely electric) market and 16% of the plug-in market (which includes plug-in hybrids) in 2020.
Through its subsidiary Tesla Energy, the company develops and is a major installer of photovoltaic systems in the United States. Tesla Energy is also one of the largest global suppliers of battery energy storage systems, with 3.99 gigawatt-hours (GWh) installed in 2021.
Tesla enthusiasts are loyal, whether they revere Elon Musk or simply love the appearance and performance of his company’s vehicles. It’s easy to understand why: from automobiles with bioweapon protection modes to solar roofs, Tesla (TSLA) is a big industry disruptor.
This has resulted in some excellent investment returns. Tesla’s revenues are up a stunning 98 percent year over year, according to its most recent earnings report, and its stock is up about 80 percent compared to this time last year.
If all of this has piqued your interest in Tesla’s electric growth, here’s everything you need to know about purchasing TSLA stock.
How to Buy Tesla Stock
1. Open a brokerage account
Opening a brokerage account is the first step in purchasing and selling assets such as stocks, mutual funds, and exchange-traded funds (ETFs). However, a brokerage is more than simply a ticket to ride TSLA to the moon. It also includes all of the information and instruction you’ll need to be a great investor, as well as many sorts of investment accounts tailored to certain goals.
If you’re thinking about investing for retirement, consider a tax-advantaged individual retirement account (IRA).
If you want greater freedom with your investing account—say, if you want to save for your own Telsa in the coming years—you should probably open a taxable brokerage account. These allow you to invest for any purpose or time frame, but you must pay taxes each time you sell an investment for a profit or receive dividend income.
Because not all brokerages are made equal, you should examine the fees, available investments, and services offered by at least a handful to choose which is best for you.
2. Determine the Amount to Invest
You probably can’t sign over your entire income to Elon Musk. That means you’ll need to ask yourself a few questions in order to determine how much you can afford to invest in TSLA.
- What is your budget? After you’ve paid all of your monthly bills, you’re free to save and invest whatever money is leftover. If you don’t already have one, you should put at least some of that money into an emergency fund, as well as retirement savings. However, the remainder might be used to fund other ventures, such as Tesla.
- How much does TSLA now cost? Stock prices are typically volatile, but Tesla’s stock price has been over $400 per share for the past year. As a result of this, you may not be able to buy a whole share of TSLA yet. Luckily, some brokerages, like Charles Schwab, Robinhood, Fidelity and Stash, let you buy portions of stocks called fractional shares.
- What’s your investing strategy? The majority of individuals invest in one of two ways: with a huge lump sum all at once or with little amounts over time. This latter strategy, known as dollar-cost averaging, may reduce your risk and help you spend less per share on average over time.
- What about your other investments? If you’re already an investor, you should consider how Tesla fits into your portfolio. “Any particular stock purchase should play just a modest impact in the average investor’s portfolio,” said Chip Workman, a certified financial planner (CFP) of The Asset Advisory Group. “A decent rule of thumb is that no single stock should account for more than 5% of a portfolio.”
3. Review Tesla’s Performance and Potential
Before purchasing Tesla shares—or any stock, for that matter—it’s a good idea to do some research about the company’s finances, performance, and future prospects. The annual reports (Form 10-K) and quarterly reports of a firm are the best places to start (Form 10-Q). In these, public firms such as TSLA are compelled to publish thorough details on their financial health.
You can also seek the advice of specialists. Brokerage firms routinely issue commentary on key stocks and industries, while third-party assessors such as Morningstar give in-depth research.
You’ll be able to decide how much of your money to put into Tesla if you combine financial facts with professional knowledge.
4. Decide Your Order Type and Place It
You may purchase your first Tesla shares once you’ve determined how much you want to invest in the company. Log into your brokerage account and input Tesla’s ticker symbol (TSLA) as well as the number of shares or dollar amount you wish to invest.
You can use a basic market order to buy TSLA at its current price, or you can use a more complicated order type, such as limit or stop, to buy TSLA only if its price falls below a specified level.
Because Tesla is listed on the Nasdaq market, you may buy it from 9:30 a.m. to 4:00 p.m. ET Monday through Friday. You can continue to place orders for a few hours before or after the market opens if your brokerage offers pre-market and after-market trading. Any orders submitted outside of trading hours will be filled as soon as the exchange reopens.
Whether you invest in Tesla or other assets, it’s a good idea to monitor their performance on a regular basis.
It’s usually best, to begin with, an annualized percentage return. This allows you to examine how well TSLA did over the course of a year in comparison to other companies or investments. You may also check Tesla’s financial data to ensure that it is still heading in the right way.
In addition to comparing TSLA’s performance to that of other stocks, you may want to compare it to industry benchmarks such as the S&P 500 and the Nasdaq Composite Index. This will show you how Tesla compares to the market as a whole.