Summary
An American manufacturer of sustainable energy products and electric vehicles, Tesla, Inc. was formerly known as Tesla Motors, Inc. The company specializes in the creation, design, production, and marketing of well-known fully electric cars. The company also provides automobile servicing centers and supercharger stations. As a brand and an automobile business, Tesla was rated as the best-selling plug-in and battery-electric passenger car manufacturer in the world in 2019.
Investors might buy Tesla shares to diversify their portfolios. However, buying Tesla stock involves using an internet broker. Deposits must be made after opening a broker account. The trader can then buy as many shares of Tesla as they choose. Buying Tesla shares has a lot of benefits and drawbacks.
To avoid putting money at danger, there are numerous more things to take into account when buying shares in Tesla. The decision of the buyer on how to buy shares in Tesla is influenced by a number of factors, including the broker’s performance in the past, regulatory requirements, and many more. Tesla stocks can be purchased on trading platforms for both desktop and mobile devices, such as those offered by eToro. When purchasing Tesla shares, both trading and non-trading fees incurred are also discussed here.
The buying of Tesla stock has received positive responses from Reddit and Quora members. This article also includes a comprehensive FAQ that addresses the most frequently asked questions of traders considering buying Tesla stock.
Investors can buy shares in Tesla by following the steps below.
- Select an Online Stock broker
- Create a Brokerage Account
- Deposit Funds
- Buy Tesla Shares
- Manage your Tesla Positions
The following are the pros and cons of buying shares in Tesla.
Pros
- World’s Largest Automaker
- Dominates the Tech Sector
- High Market Capitalization
Cons
- Investor Biased Sentiment Towards the CEO, Elon Musk.
- Too Much Competition in the EV Market
- The Tesla stock moves with the sentiment, unconstrained by news.
- Performance of the stock is highly dependent on the CEO’s actions.
- No Dividends
There are so many factors to be considered while buying shares in Tesla with brokers such as eToro. Some of them are as follows.
Commissions & Fees
The price to purchase a single share of Tesla is determined by the price of share at which the stock is moving as well as the transaction fee. The brokerage company will charge you a commission for this. eToro, for example, has 0% commission stock investing. As a result, you won’t be required to pay commissions while buying Tesla stocks with this broker.
Stock Brokers Regulation
Traders essentially put all of their money at danger if they trade with an unregulated broker or buy shares from them. They cannot tell in advance how events would play out and cannot assume from a few interactions that brokers have hidden agendas. It is crucial to be secured from abuse and fraud and select a broker with multiple regulations. The Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC), the Cyprus Securities and Exchange Commission (CySEC), the Financial Services Authority of Seychelles (FSAS), and the Money Services Business (MSB) all have authority over eToro group entities and enhances the security of its functions.
Trading Platforms
Many people have been encouraged to dabble in the stock markets in an effort to earn higher returns. Online trading platforms have received the benefits by enabling customers to make stock market investments without going through a financial advisor. Traders can buy the most popular stocks such as TSLA on desktop and mobile devices with market-leading platforms like MT4, MT5 and other proprietary platforms offered by online brokers.
Leverage Availability
If clients are interested in leverage, they can choose share CFDs. eToro offers both real shares and share CFDs. Contracts for Difference, or CFDs, are leveraged products, which means a trader only requires a small amount of capital to establish a position, and a CFD broker such as eToro covers the rest. Although it carries a larger risk, leveraged trading can produce higher returns. CFD stocks are trades in which possession of the underlying asset is not involved. Features like leverage and short (SELL) orders are made possible by CFDs. Spread applies to both sides (BUY and SELL).
The Tesla Leverage Shares are available in the form of ETFs and ETPs naming -1x Tesla ETP, 2x Tesla ETP, +3x Long Tesla ETP, that can be used for leverage trading. The Tesla leverage shares are offered by Trading 212, Interactive Brokers, Degiro, and IG.
Tesla Stock Performance
The company’s share value has increased at an annual compounded growth rate of 56.8%. While this is an outstanding return, there haven’t always been smooth sailings. In June 2010, the business listed its shares at $17 each; in November 2021, its shares reached an all-time high level of $414. Since then, it has been declining and now the current price of TSLA shares is $185. The corporation increased its manufacturing capacity and car sales, which caused the share price to surge in 2021. Buyers should be aware that previous performance does not guarantee future outcomes and should not be used to make predictions about the price of Tesla stock when buying shares in Tesla.
Tesla Past Dividends
Dividends are sums of money that a business distributes to its shareholders out of its earnings or cash on hand. A corporation’s board of directors or executives may opt not to distribute dividends if they believe that free cash would be better spent in the company rather than paid to shareholders. Tesla is not paying dividends as of now. The board of directors of Tesla will decide when it is appropriate to start paying dividends. They are entrusted with making sure that management is focused on increasing the value of the firm, and it is their duty to ensure that executives use capital in a way that benefits shareholders.
Traders look for an online broker if they want to buy Tesla stock on their own. They can deposit funds and buy shares in Tesla when they create an account with a recognized and regulated brokerage such as eToro. The trading platforms at eToro were created with the intention of being accessible to all different kinds of traders. The designers were able to do this by creating a user-friendly interface with lots of cutting-edge features to assist their clients in managing their money and trading activity. The traders can access the trading platform on both mobile and desktop devices.
Desktop Trading Platforms
Every trader needs access to a user-friendly and cutting-edge desktop trading platform so they can conduct trading with ease. For this purpose, they can choose a proprietary trading platform offered by the broker, or a third party trading platform like the MT5. The eToro proprietary trading platform has a “user-friendly” layout. With the help of one click trading, customers can quickly and easily open a new position for their chosen instrument.
ProCharts will make it simple for traders to compare charts from various assets and/or time periods. Clients can specify desired price targets for closing open positions in order to better handle their positions, safeguard their investments, and secure their earnings. Take Profit provides the same option for locking profits at a specified price point while Stop Loss provides this very same feature for closing the trade if it incurs a specific loss.
The MT5 platform can also be assessed on desktop. With Market Depth and a method of separate accounting for orders and trades, MetaTrader 5 offers a potent trading system. Both the conventional netting system as well as the hedging option system for order accounting are supported by MT5.
Mobile Apps
Mobile trading platforms make it easy for traders to trade on the go. Similar to desktop trading platforms, traders can access these platforms on mobile phones with the help of apps. Traders can utilize eToro’s convenient mobile trading app to buy Tesla shares.
On Apple and Android smartphones, the eToro mobile trading platform can be downloaded. Traders may find all of the broker’s financial products, including Tesla shares, on the mobile trading app. With the ability to trade in these assets both with and without leverage, eToro has made short-, mid-, and long-term investing possibilities available to almost everyone.
Similarly, the MT5 mobile trading app can also be downloaded on mobile devices. It provides access to financial markets 24/7. Using the integrated collection of signals and analytical objects, the MT5 trading app facilitates expert technical analysis.
There are two kinds of fees incurred when investing in Tesla shares, they are the trading and non-trading fees. We will explore more about each of them below.
Trading Fees
Fees incurred while trading are known as trading fees. They are mostly spread and commission, and in some cases, swap or overnight fee. Commission is charged based on volume of the trading transaction, while the spread is the difference between the bid and ask price of a CFD stock. eToro, for example, charges 0% commission on its stocks and a 0.15% spread on non-US stocks. The swap fee depends on the kind of trading instrument.
Non-Trading Fees
Buying shares of Tesla also comes with some non-trading fees. These types of fees include deposit or withdrawal fees, inactivity fees, or any fee that is not related to trading. Even if there are no setup or deposit fees with the broker, you should anticipate paying fees for currency conversion, inactivity, withdrawals, etc. For instance, there is a $5 fee for each withdrawal request made on eToro.
If the deposit or withdrawal is done in a currency other than those listed as supported, your payment provider is likely to charge you for the conversion from that currency to USD or vice versa. Some brokers also charge inactivity fees. Your account will be subject to a $10 monthly fee after a year of inactivity at eToro. It’s important to note that eToro won’t close any open positions in order to pay the charge.
About Tesla (TSLA)
Tesla Motors, the company’s original name, was established in July 2003 as a tribute to electrical and mechanical genius, Nikola Tesla. Under the ticker TSLA, Tesla stock is traded on the NASDAQ. The firm is a part of the Nasdaq 100 Index. The company operates throughout Asia Pacific and Europe, and it has production sites in the US, Germany, and China. Austin, Texas, serves as the headquarters of Tesla. The automotive and energy firm discovers, develops, sells, and leases energy production and storage technologies in addition to electric automobiles.
The Model 3 sedan was released in 2017. It is known to be the finest plug-in EV. Almost 800,000 units have been released until now. Tesla is also the leading supplier of plug-in electric vehicles. Additionally, the company sells solar electricity, constructs and maintains energy systems, and provides end-to-end sustainable energy solutions. The solutions include generation, storage, and usage of energy. Through a series of company-owned shops and galleries, it promotes and distributes vehicles to customers.
The market capitalization, often known as market cap, is a measure of a firm’s value that takes into account all of the outstanding shares of a publicly listed company. Tesla market capitalization is $611.58 billion. This makes Tesla the seventh most valuable corporation in the world by market cap. The share price of Tesla is $195.16 as at the time of writing this article. The 3.16 billion shares of Tesla are now outstanding, according to information from Nasdaq.
The most notable event of 2020 was probably Tesla’s admittance in the S&P 500 on December 21, even if an over 700% rise in share price could be sufficient for most businesses. The S&P and Dow Jones Indices held Tesla and its stockholders waiting despite the business declaring the four consecutive quarters of profitability necessary for inclusion in the index, which had been a long-awaited event for Tesla. Management is optimistic in Tesla’s ability to support its operations using cash from operations due to the company’s enhanced economies of scale with increased production. In the coming quarters, the company anticipates that free cash flow will continue to be positive.
Reddit users are found to be sharing great things about Tesla stock. One of the members praised Tesla showing his full confidence in Tesla stocks. He stated that Tesla has shown sustainable growth and increased revenue over the years, and it is expected to follow the same trend. Tesla is not just a traditional car manufacturer, but they are devoted to innovation and customer satisfaction.
Quora
A question on Quora was posted regarding Tesla as a long-term investment. One of the members answered that question from two perspectives. He stated that a long-term investment in Tesla is great if we think it is a revolutionizer and a company that is trying to be on top.
Bottom Line
In order to diversify their portfolios, traders can buy shares in Tesla. The shares in Tesla can be bought through an online broker. After creating an account with the broker, deposits are to be made. Then the trader can complete the steps on how to buy Tesla shares by making the buy order. There are many pros as well as cons of buying shares in Tesla.
Additionally, there are many factors to be considered when buying Tesla shares to not put money at risk. The past performance of the stock, the broker’s regulations and many other factors affect the decision of the buyer. The share can be traded on both desktop and mobile trading apps such as the one by eToro. There are trading and non-trading fees incurred when buying shares in Tesla. Reddit and Quora users also have great reviews on buying Tesla shares.
Q & A
The founders of Tesla are Elon Musk, Martin Eberhard, JB Straubel, Marc Tarpenning, Ian Wright.
Elon Musk owns 446.2 million shares of Tesla, or 14.13% of the company’s equity, making him the company’s largest individual stakeholder. This put Musk’s equity in the business at a $86.95 billion valuation.
In June 2010, Tesla went public, and at that time, its sole line of business was electric vehicles.
You can buy Tesla shares through an online stock broker such as eToro.
Yes, you can buy Tesla shares online at eToro and other brokers that offer the share.
Concerning the past performance of the Tesla shares, it is predicted to be a great investment.
Traders can buy as little as $10 shares of Tesla at eToro.
The current share price of Tesla is $195.16, as at the time of writing this article.
Yes, you can trade leverage shares of Tesla.
Yes, Tesla real shares are commission free at eToro.
eToro has the best trading conditions for Tesla shares as it provides zero commission as well as high end trading platforms. The only thing to keep in mind is that the broker provides both real shares and share CFDs to be traded.
Every investment has risks. But Tesla will benefit from its higher profitability in 2023 over its rivals. The decision for the company is clear: It will lower pricing to boost sales. Its margins will be impacted, but Tesla always has room for improvement.
The trader’s specific preferences, including the investment goals, financial condition, risk tolerance, and diversification strategy will determine how much should be invested in Tesla shares. The traders should take into account the entire financial strategy, be aware of the dangers associated with stock investing, and think about diversifying their portfolio by including a variety of stocks and other assets.
Despite conflicting analyst opinions over the electric vehicle manufacturer’s forecast, Tesla shares increased by almost 11% by the start of 2023 and indicated a possible increase in share price throughout the year. Price reductions made by Tesla at the end of the year 2022 and into 2023 appear to have increased demand, providing a cautiously upbeat forecast for output in 2023
