Buy Tesla Shares

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buy tesla shares

You can use a simple market order to buy shares at their current price, or you can try a more sophisticated order type, like limit or stop, to purchase TSLA only if its price falls below a certain threshold.

As a general rule, Tesla does not make regular cash dividend payments to shareholders. However, it appears to make an exception for stock splits. It carried out a dividend pay-out in 2020 during a five-for-one stock split. And, most recently, in August 2022 it secured a three-for-one stock split, which allowed the company to pay dividends of two shares for each share.

Tesla's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 53x. In other words, Tesla shares trade at around 53x recent earnings.

That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.

Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Tesla's is 2.0705. This would suggest that Tesla's shares are significantly more volatile than the average for this exchange and represent a higher risk.

As of March 2, 2023, Tesla shares fell 6% but analysts like Goldman Sachs maintain a buy rating due to the long-term vision Company CEO Elon Musk presented during the company's investor day event. According to analysts, the company seems poised to meet the growing demand for electric vehicles.

Fractional shares are illiquid outside of Public and not transferable. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see our Fractional Share Disclosure to learn more.

In March 2022, the company announced plans to request stockholder approval for an increase in its number of shares at Tesla's upcoming annual meeting, which would enable the automaker to split its stock again. That three-for-one split took place in August.

To many consumers, Tesla Inc. is synonymous with electric cars and the broader clean energy movement. On Wall Street, Tesla's stock is often among the most actively traded stocks, with millions of shares changing hands each day. The stock is listed on the Nasdaq stock exchange under the ticker: TSLA.

Eager to get in on the action? There are a few ways to do so. If you're not interested in the financial advisor or investment firm routes, you can purchase shares on your own by setting up an account with an online brokerage or investment platform.

If you haven't already started trading on your own, you'll need a brokerage account to purchase shares of Tesla, according to Cassandra Kirby, Partner, COO, CCO, and Private Wealth Advisor at Braun-Bostich & Associates.

The best brokerage accounts offer features like commission-free trading (meaning you won't pay a fee each time you buy a certain type of investment; you'll only be responsible for that asset's share price) and fractional shares.

"An index fund that houses Tesla shares may provide you with greater diversification because you are purchasing a basket of stocks rather than just Tesla stock," says Kirby. "This could be an advantage or a disadvantage and depends upon your appetite for risk and your investment timeframe, as well as the future outlook for Tesla stock versus the other stocks held in the index fund."

If you're thinking of investing in Tesla stock, you can buy shares without commissions, depending on the brokerage you choose. Plus, as of November 29, 2022, its current value sits at more than $180. If this price is too much per share, you can purchase portions of the full share price. For instance, once you reach the point of placing an order, you can select a dollar amount to invest in Tesla, as opposed to a share amount.

Both lenses are necessary in determining how many shares you should buy and how long you should park your money in them. In addition, you'll want to keep up with news concerning both the company, its industry, and the economy, as all factors can impact investor demand and directly affect whether Tesla rises or falls in value.

There isn't a one-size-fits-all initial investment amount when it comes to purchasing shares of a stock for the first time. Both the investment amount and number of shares will vary according to each trader's personal finances, risk tolerance, investing goals, and time horizon.

If you ever feel it's best for you to sell, you can do so by going to the "trade" section of your investment platform's website or mobile app (or if you don't have signal, you can call your brokerage to have them conduct a representative-assisted trade for a fee). You can typically either sell a number of shares, or a dollar amount. Note, though, that you'll incur capital gains taxes on the assets you sold.

While you can purchase shares of the company either directly, through individual stock, or indirectly through index or mutual funds that contain Tesla, it's nonetheless important to trade with a strategy that both suits your skill level and goals and preserves your emergency fund and budget.

Long-time Tesla bull Ross Gerber wrote in a tweet, "Tesla stock price now reflects the value of having no CEO. Great job tesla BOD - Time for a shake up. $tsla." Gerber has launched an informal campaign to have fellow shareholders vote to appoint him to Tesla's board of directors.

But Tesla's stock has dropped more than other larger automakers since Musk announced his plans to buy Twitter in Apr. 2022. Since that date, Tesla shares are down 59%, versus 26% for Ford and 12% for GM. The S&P 500 is down 14%.

He told Twitter employees he sold Tesla shares to "save" their business while proceeding to cut more than half of staff at the company and rolling out a host of product and policy changes, some of which he later reversed.

Mizuho Securities analysts wrote in a note, that "near-term, we see potential weakness in Tesla sales as macro headwinds and a weaker consumer could drive lower demand for higher-priced EVs." The firm is still bullish Tesla long-term, citing the company's new factories as a competitive advantage, and new electric vehicle tax credits on the horizon in the US which could "accelerate demand" domestically. In China, some EV credits are expiring as of the start of 2023. The firm has a price target of $285 and a buy rating on shares of Tesla.

"He seems to sell equity in really large blocks, say 'I'm done and I'm not selling anymore.' But talk is cheap. He says that and then sells more shares. So the more you say that and investors think he's probably not done? The less confident they will be that the price is going to bounce back."

Tesla shares have dropped over the past year, partly because investors worry that CEO Elon Musk is too distracted with his takeover of Twitter. Jim Watson/AFP via Getty Images hide caption

Musk has also had to sell billions of dollars of Tesla shares to fund his Twitter takeover, which hurt the stock. Musk saw his own personal wealth drop sharply, though he still has more than $100 billion.

In early January 2021, Tesla shares rose over $800, hitting a new 52-week high. The 52-week low was $70.10. In July 2021, the company hit another milestone in Q2, with $1.1 billion reported in profits. Only roughly one-third ($354 million) came from regulatory credit sales, which is the first time Tesla made more money from automotive and energy storage sales.

By November 2021, Tesla shares reached another milestone, rising over $1,200. But investors demonstrated concern again in April 2022 when Tesla stock fell 12% after Twitter approved a $44 billion acquisition deal from CEO Elon Musk. If approved, the deal could put Musk in charge of Tesla, SpaceX and Twitter.

Most trading platforms allow you to purchase US shares. You will be charged a foreign exchange fee (typically around 1%, but may range from 0.15% to 1.5% depending on your platform). Many platforms also charge a slightly higher trading fee for buying US shares.

As with UK shares, any profit on US shares will be subject to Capital Gains Tax, subject to your annual allowance (currently 12,300). You will not have to pay Capital Gains Tax if you hold the shares in an Individual Savings Account or Self-Invested Personal Pension.

You may make a profit if you invest in Tesla shares, however, holding shares in an individual company is higher risk than investing in a wide range of shares. A diversified portfolio should also reduce volatility.

One option is to invest indirectly in Tesla by investing in a fund, investment trust or exchange-traded fund (ETF) that holds Tesla shares, amongst others. These products provide a ready-made portfolio of shares in a number of different companies.

A unique buying opportunity has revealed itself for shares of electric vehicle company Tesla (NASDAQ:TSLA) which experienced an intensifying sell-off in December that is putting Tesla on track to its worst month ever. After Tesla lost more than $800B in market cap this year and controversy mounted over Elon Musk's time-consuming involvement with Twitter/stock sales, I believe the risk profile and the valuation are at their most attractive points in years. Considering that China's economy is reopening and that Tesla has the most mature footprint in the EV industry, I believe the valuation drop and negative sentiment overhang make Tesla very compelling as a long-term EV investment. 041b061a72