How To Buy Tesla Stock (TSLA)

Introduction

Tesla is synonymous with electric vehicles (EVs) and its CEO Elon Musk. Its stock – TSLA – is often preferred by most investors due to its perceived role in the future of sustained energy and technology. This makes Tesla stock an ideal investment option that can give you value for money.

Highlights and Key Takeaways

• Tesla is a lucrative stock owing to the company’s strong financial performance, innovativeness, and potential for future growth.

• The volatile nature of Tesla stock makes it a high-risk investment.

• You can purchase Tesla stock through a brokerage account.

Understanding Tesla as an Investment

Why Invest in Tesla?

Want to learn how to invest in stocks? You can start by putting your money in Tesla. The company has shown strong financial performance over the years, often surpassing profitability and revenue growth expectations. For example, Tesla attained a remarkable revenue of about $81.5 billion dollars in 2022, representing a 51% rise from 2021. 

• Tesla has an innovative business model that focuses on technological advancements. The company has been creating and implementing cutting-edge technologies in its EVs. This puts it ahead of the competition and an attractive option for investors, driving its value up.

• The EV market leader Tesla, has over 70% market share in the global luxury EV segment, commanding premium pricing for its cars. This gives it higher profit margins, making it one of the most lucrative investment options.

• Another characteristic that makes Tesla a worthy investment asset is its potential for future growth. The company has been increased its EV production in recent years, so its sales will rise immensely. 

• Moreover, the firm’s entrance into new markets, such as Europe and China is expected to drive future growth, opening up new revenue streams.

Risks Associated With Investing in Tesla

Although Tesla remains to be an attractive investment, it’s highly volatile. The company’s stock has a history of experiencing extreme price swings due to factors like investor speculation and market sentiment. This can make it harder for you to forecast and manage your investments efficiently.

• Tesla operates in a very competitive automotive industry that keeps on evolving. Conventional automakers and new entrants constantly threaten to outdo the company. This can, in turn, cause uncertainties about Tesla’s ability to sustain its market share and profitability in the long run.

• Tesla’s growth targets are quite ambitious. It plans to expand its production capacity by a huge margin and deliver many vehicles within a short period in the coming years. Substantial investments are needed to achieve these goals, and any delays could negatively affect Tesla’s stock price.

How To Buy Tesla Stock

Choosing a Brokerage

To select the right Tesla stock brokers, compare the cost structure of different brokers. How much are their trading fees and commissions? These costs can significantly affect your overall profits, so go for a broker who charges reasonable fees and offers value for money. 

• Although you can find a brokerage account with no trading commissions, the services available may be limited.

• You also need to consider the usability of the trading platform. The user interface should be easy to navigate for hassle-free trading and investment tracking.

• Be sure to assess the broker’s customer service. The best stock broker offers responsive customer support and promptly attends to your queries. They can also be reached easily on various channels like email, phone, or live chat.

• Go for a stock broker registered with relevant regulatory authorities and complies with industry standards. This ensures your investments are safe and not exposed to any illegal activities.

• Check for the availability of research and analysis tools. A good broker provides these resources to help you trade more efficiently.

Placing a Stock Order

Once you acquire a brokerage account, fund it to place a Tesla stock order. Search for Tesla’s ticker symbol (TSLA) among the list of available trading assets. Remember to type in the share units you desire to purchase or the amount of money to invest.

• Also, indicate the type of order. In case you select a market order, your TSLA trade will be executed at the current market price.

• However, choosing a limit order allows you to buy or sell your stock when it reaches a specific price.

• Most platforms also permit adding a ‘stop limit order’ after purchasing shares. This allows you to buy/sell a limit order once the stock price reaches a predetermined price. As a result, you can minimize your losses if the stock price reduces.

• Finish by confirming your order by purchasing the Tesla stock.

Monitoring Your Investment

Understanding Stock Performance

Now you know how to buy Tesla stock, ensure you monitor its performance by conducting a TSLA technical analysis. This entails assessing the TSLA chart, which generally shows how the stock price moves over certain time frames like days, weeks, months, or years. The chart comprises the y-axis and the x-axis, which track the stock’s prices and time periods, respectively.

• One of the simplest ways of spotting potential buy or sell points is identifying the support and resistance levels in the stock chart.

• A bullish signal is generated if the price goes above the resistance level, suggesting it’s time to buy. Conversely, a fall below the support level indicates a bearish signal, an ideal period to sell stock.

• You can also leverage price and volume-derived indicators like Moving Averages, Bollinger Bands, and oscillators to spot market trends and make trading decisions.

• Keep track of TSLA news. The stock’s value and performance are often affected by product launches, leadership changes, and regulatory developments. Consequently, you can adjust your trading strategy accordingly to optimize gains and reduce losses.

• Don’t forget to monitor TSLA’s investor relations. This will give you more insight into Tesla’s strategic plans, governance, etc, so you can make informed investment decisions.

Evaluate TSLA financials regularly to remain updated on its performance and future outlook. Be keen on the major financial statements such as the balance sheet, income statement, and cash flow statement. These will tell you the profits and losses the company is making, as well as the value of assets against liabilities. As a result, you can predict how TSLA stock price is likely to be impacted.

When To Sell Your Stock

You may want to sell your Tesla stock when you have achieved your investment goals. Perhaps you wanted to hit a specific price target. When that happens, sell your stock to ensure you lock in a solid profit.

• Consider selling your stocks when the company’s fundamentals change. When key measures like profit margins, sales volume, and cash flow start to decline, it’s best to get out and avoid losses.

• Track Tesla’s public relations. Anything that may harm its reputation, like fraud or misconduct by high-profile executives, may cause your stock’s value to fall. If anything like this happens, sell your stock.

• Should you identify other opportunities that can earn you better returns, letting go of your stock may also be a good idea.

• It may make sense to sell your stock if you desire to rebalance your portfolio to include other investments that can help you spread risks.

• Do you want to free up some capital to pay medical expenses, buy a house, or go on a vacation? Selling your stock may be necessary.

How To Invest in Tesla with Funds

In addition to buying individual Tesla shares, you can expand your portfolio to include index funds or exchange-traded funds (ETFs). This spreads your money to other stocks as well, lowering your risks significantly.

• You can easily purchase index funds through an online brokerage account. Just review the list of available ETFs focused on Tesla, electric cars, or clean energy.

• Also, check index funds that track an index featuring Tesla. Good examples include the Nasdaq-100 and S&P 500.

• Select funds with low expense ratios to decrease overall costs in the long run.

• After selecting the index fund or ETF, place an order to purchase shares of your preferred fund.

• Indicate the amount you desire to invest or the number of shares and confirm your order.

It’s advisable to trade ETFs with a regulated broker. This is essential for the protection of your investments. Since this broker follows industry standards, you are shielded from fraudulent activities that might lead to loss of funds.

Conclusion

Learning how to buy Tesla stock is a wise move because it can earn you good money. The company has a history of performing well and is a market leader. Furthermore, its sales are projected to grow significantly, pushing the stock’s price even higher. 

However, Tesla stock is also high-risk, so you can lose significant amounts of money if the company’s fundamentals change for the worse. The good news is that you can minimize this risk by monitoring your investment and expanding the portfolio to include index funds or ETFs. Also, trade the stocks with a regulated broker to avoid exposure to fraudsters.

FAQ

How Can I Buy Tesla Stock?

You can easily purchase Tesla stock by opening a brokerage account with a reputable platform and funding it. Then, search for Tesla’s ticker symbol (TSLA), indicate the amount or number of shares you want, and type of order. The process is complete once you confirm the order.  

Can You Buy Tesla Stock Directly?

No, you cannot buy Tesla stock directly from the company. You need to have a brokerage account that facilitates the purchase process.

What is the Best Stock To Buy Right Now?

In addition to Tesla, some of the best stocks to buy at the moment are RCI Hospitality Holdings, Harmony Biosciences, Academy Sports Outdoors, Chesapeake Energy Corp, and Semler Scientific.