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How to buy Tesla shares
This guide gives you all the information you need when deciding whether to put some of your money into Tesla shares. Keep reading to find out everything you need to consider including the history of the company and where to buy Tesla shares online.
Compare the best Tesla trading platforms
If you are trying to find the best place to buy Tesla stock, look no further than the list below. Our team of experienced analysts have compared all the best platforms against each other to help you make the right choice. If you’re not quite ready to invest, then just scroll past the table and keep reading.
How to buy Tesla stock, a step-by-step guide
Investing in Tesla is simple, so don’t worry if you’re new to stock investing. These are the steps to follow in order to complete your investment:
- Choose a broker. In order to invest in any public company online, you need to use an online brokerage platform. There are many different options to choose from, each with its own unique benefits and drawbacks. The comparison table above can help you select the right broker for you, and you can head to our comprehensive broker reviews if you’re still unsure.
- Create an account. Once you’ve selected your broker, simply go to their website and create an account. The steps required for this will vary from platform to platform, but generally, you can expect to have to provide your name, email address, phone number, and some form of photo identification.
- Deposit funds. Log into your broker account and select the option to deposit funds. Depending on your broker you’ll have a variety of payment options available; most brokers accept bank transfers and debit card payments, but not all accept e-wallets such as PayPal. Select your preferred payment method and deposit the amount of money you wish to invest.
- Place an order for TSLA stock. Now navigate to the shares section on the broker’s trading page that you have signed up to. Here, you can search for Tesla’s ticker symbol (TSLA) and see the current price at which the stock is trading. If you’re happy with the price, enter the number of shares you wish to purchase and place your order.
- Execute your order. Once you have placed your order, your broker will automatically execute it for you and your Tesla shares will be listed in your account. Congratulations, you’ve just bought shares in Tesla!
What is Tesla? And should I invest?
Tesla is arguably the world’s most famous electric car manufacturer. Originally founded under the name Tesla Motors in 2003 by Martin Eberhard and Marc Tarpenning, Tesla has been run by charismatic and controversial CEO Elon Musk since 2008. To date Tesla’s Model 3 is the best-selling electric car of all time.
The question of whether you should put your money in Tesla stock depends on your investment goals and whether you believe the company will keep growing into the future. You also need to consider whether you’re going to adopt a long term investment approach or a more short term trading strategy.
Head over to our Tesla quote page to find up-to-date charts, revenue information, and other statistics so you can make an informed decision when investing.
How has the company performed in recent years?
After being founded in 2003, Tesla shares traded at under $10 for nearly a decade – finally breaking this barrier as the stock price rose in April 2013. After this point, the stock performed well as Tesla released more models and started to expand its business – generally fluctuating between a price of around $30 and $70 (These numbers, and those below, have all been adjusted down in light of Tesla’s 5-1 stock split on August 21st 2020).
All this changed in 2020 when Tesla’s share price suddenly started to climb sharply, as January 2020 saw Tesla reach a market capitalisation of $86 billion, making it the most valuable automaker in the history of the USA. The stock surged to $183.48 on the 20th February 2020 before falling back to $72.24 by 18th March as the COVID-19 pandemic sent markets plummeting.
Unlike many companies, however, Tesla’s rebound from this drop in price was very fast, and the stock soon passed a new milestone by trading at $205.01 on 10th June. By July Tesla’s market capitalisation had risen to $206 billion, which made the company the most valuable car manufacturing company in the world ahead of Toyota. The company’s growth continued, and traded at over $600 in December 2020 – the month that also saw the stock added to the S&P 500 index.
Is it a good time to buy Tesla shares now?
This depends on your investment goals. If you’re looking to trade Tesla in the short term, then your ability to undertake technical analysis and read price charts is more important than the stock’s current price – meaning it’s rarely a bad time to invest. If, however, you want to hold Tesla shares for the long term then it’s best to look into the fundamentals of the company and see if you expect it to grow in the future.
Tesla cemented its place in the economic landscape of both the USA and the world in 2020, and so you need to assess whether you think this means the company has a strong foundation from which to grow, or if it has reached its peak and is likely to fall in price.
To help you figure out if now is the right time to be investing, have a read of our most recent analysis of Tesla and the way it is behaving in the markets right now:
Tesla stock price prediction for May after Q1 revenue soared 74%
Should I buy Tesla shares after an analyst from Morgan Stanley raised its price target to $900?
Tesla stock price analysis: TSLA can hit $3,000 by 2025, says a top hedge fund manager
Buying, selling, and trading shares for beginners
What to do before buying shares
You should always take the time to research a stock fully before investing your money, especially if you haven’t bought shares before. The more knowledge you have, the better your chances of making a wise investment.
With that in mind, here’s a checklist to run through before investing in Tesla shares.
- Research the company. You should always examine the fundamentals of a company before investing. What is Tesla? How did the company get its start? How did it grow? Is Tesla’s revenue and profit growth picking up? Is the company innovating? The more you know about Tesla, the better positioned you’ll be to make smart investment decisions.
- Make sure you understand the basics of stock investing. Before getting involved in the stock market, make sure you have an understanding of how it works. This will ensure that you have more clearly defined goals and have thought through how you will achieve them.
- Decide between share dealing and CFD trading. Choose the type of investment strategy you want to pursue, and make sure you have carried out the necessary fundamental or technical analysis for share dealing and CFD trading respectively.
- Set the size of your budget. The golden rule of investing is never to risk more than you can afford to lose. Not every investment you make will result in a profit, so it is important to set a budget that not only allows good potential for capital growth, but also protects against overly damaging losses.
- Find the right broker. Individual brokers each have their own pros and cons. Some will have low fees but have a user interface you struggle to understand, whereas others may be a bit more expensive but come with a range of features that you want to take advantage of. Our broker reviews can help you find the right platform for you.
- Examine broader market conditions. No stock exists in a vacuum, and it’s always important to analyse the general trends of the stock market as a whole before investing. If a bear market is setting in and stock prices are falling, it’s best to wait it out and invest your money later when the stock is cheaper. If, however, the market is looking bearish, you’ll want to make your investment quickly to get the maximum benefit from rising stock prices. Our news section can help you keep on top of movements in the financial markets.
What is the difference between buying, selling, and trading shares?
If you’re new to stock investing, then it’s important to understand the basics of how to buy, sell, and trade Tesla shares. Here’s a quick run-through of what’s involved in each.
This process involves finding a broker and placing an order for Tesla stock, as outlined in the steps further up this page. Ideally, you want to time your investment when the stock’s price is low so that you can profit by selling the shares after they increase in value.
When you sell any Tesla shares you have bought, you’ll want to do so at a higher price than the one at which you bought to earn a profit.
When you sell is up to you. You might decide to hold for a long period of time, hoping to benefit from the company growing steadily throughout. Or, if you see that Tesla’s stock is already up a lot compared to the price you bought it and you’ve noticed that the stock market is starting to fall, it might make sense to sell and take your profits to invest elsewhere. Equally, if the stock has fallen since you bought it and looks set to fall further, it might be a good idea to cut your losses by selling your shares.
Trading is the same process as buying and selling shares, it’s just done over shorter periods of time with the aim to make small profits on a regular basis. This means that you can make money faster and spend your profits in your day-to-day life – however, on the other side it means you can lose money faster as well. For inexperienced investors, we generally recommend making investments for at least 6 months to a year instead of making trades in quick succession.
You can trade Tesla shares outright or trade by using CFDs. These allow investors to speculate on stock prices and trade with leverage in pursuit of bigger gains. CFDs trading is explained further in the next section, but it is worth noting that beginners should avoid trading with leverage. It comes with large risks and is best left to experienced investors.
Share dealing vs CFD trading
When it comes to investing in any stock, the two options you have are share dealing and trading. Which one of these methods to opt for largely depends on your investment timeline, with investors thinking long term tending to go for share dealing, and those looking for short term gains pursuing a more aggressive trading strategy.
Here’s a quick summary of the two approaches, and the pros and cons of each.
Share dealing refers to the practice of holding shares in a particular company over the long term. When investing like this, you’re seeking to profit either from dividend payments or an increase in the stock’s price over time.
When investing your money this way, it is important to do thorough fundamental analysis of the company in which you are investing. You want to put your money in a stock you believe will trend upwards over time, even if there is some market volatility along the way, rather than get distracted by shorter-term peaks and troughs.
- Can build wealth over time to achieve financial goals
- Don’t need to be very reactive to short-term market movements
- Some stocks will give you an income through regular dividend payments
- Takes a long time to realise any profits
- Your capital is tied up in stocks and cannot be used for other investments
If your aim is to generate profits in the short term, then you might be better off trading shares than holding them in your portfolio. Stock trades like this are executed using CFDs (contracts for difference), which allow investors to trade against the value of a stock without having to take ownership of it. When CFD trading, investors are looking to open and close positions fast to profit from short-term fluctuations in value.
One aspect of CFD trading that many investors find attractive is that they allow you to trade with leverage. This means you can place large trades while only putting up a fraction of the value yourself – for instance, if a platform offered leverage of 1:10, you could put £10 into Tesla and be able to trade £100 worth. This can maximise profits if the market moves in your favour, but be careful as it can also lead to heavy losses.
When trading using CFDs, it is key to be skilled at technical analysis and reading stock price charts. As you’re trading stocks quickly and frequently, the fundamental strength of the company in which you’re investing isn’t as important as being able to predict how its stock price will rise and fall minute-by-minute.
- Can generate fast profits if you read the market right
- Some platforms allow you to trade with leverage
- Prevents your capital being tied up so you can take advantage of investment opportunities
- Trading with leverage is risky and can lead to big losses
- Doesn’t necessarily generate growth over the long term
Consider which approach suits you best and craft an investment strategy that works for you. If you need more information, then simply take our stock trading course and read our guide to CFD trading to get you up to speed.
If neither of these options appeal to you, then you can find a variety of other ways to invest in Tesla on this page. If, however, you’re ready to get started now, simply select one of the brokers in the table above and sign up now.
How to choose a broker
With the wide variety of online brokers available these days, it can be hard to figure out which is the best service to go with. Our comparison table and in-depth reviews can help you cut through the noise, but by and large these are the aspects you should be considering when selecting a broker:
- Range of stocks available. The most important thing is that you can actually use the broker to buy the shares you’re looking for. Some brokers offer more stocks than others, and many will allow you to trade other assets, such as forex and commodities.
- Fees and commissions. You want to keep as large a chunk of your profits as you can, so it’s important to make sure your broker doesn’t charge high fees that can eat into your profits.
- Regulation. You should only use regulated brokers to place trades and buy shares. Unregulated brokers can be risky and offer little to no protection if the business were to fail while you had funds in your account.
- Payment methods available. You might want to use a specific payment method, such as PayPal. Not all brokers accept every payment method, but by using our comparisons, you can find out which brokers support the option you’re looking for.
- Reputation. One of the strongest indicators of a broker’s reliability is the reputation it has with the customers who have used it. Brokers are online businesses, and as such many user experiences can be found online. You can check these out in addition to our reviews to make sure you choose the right platform.
- Customer service. As you’re going to be investing your money using the platform, you want to check that the broker offers good customer service in case you have a query or something goes wrong.
Latest Tesla news
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Fact-checking & references
Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.
Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >