How To Buy Tesla Stocks & Shares
Buy Tesla (TSLA) Stocks & Shares
Discover the best ways to buy Tesla stock and maximize your investment. Follow our simple guide!
Tesla, the innovative electric vehicle and clean energy powerhouse, has captivated the attention of investors worldwide. Many people are interested in investing in Tesla shares because of its fast growth and strong market position. However, how does an individual purchase Tesla stocks, and what factors should be taken into account?
- Understand Tesla’s market, products and competition before investing.
- Consider associated costs & foreign exchange risk when opening a trading account to buy shares.
- Evaluate company performance, industry trends and competitors for informed decisions about investments in Tesla stock.
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How to buy Tesla Inc shares
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- Search for the share using the Tesla Inc stock code - Type in the TSLA stock code into the search box
- Check out the latest info and price for the selected share - Some platforms offer free research and analysis
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Understanding Tesla and Its Market
Tesla is more than an electric vehicle manufacturer; it’s a driving force in the clean energy revolution. The company primarily manufactures electric vehicles and sells solar products like small and large-scale solar batteries.
Tesla is a top seller of electric cars worldwide, making it a popular choice for investors. The highest-rated car ever produced by Tesla, the Model S, has positively impacted Tesla’s share price.
To make a smart investment choice, consider factors that affect Tesla’s performance. These factors include company news, new products, and competition in local and international markets.
Tesla’s Master Plan 3 wants to make 20 million electric vehicles per year by 2030. They also plan to build more gigafactories for making electric cars, battery storage systems, and other sustainable energy products.
Trading news for Tesla Inc
Is now a good time to buy Tesla stock?
Tesla stock is a popular choice for investors looking to buy into a company with a strong track record of innovation and financial performance. As a leading manufacturer of electric vehicles, Tesla has disrupted the traditional automotive industry and has consistently delivered strong financial results.
When considering investing in Tesla stock, it is important to carefully research the company and its market position. This may involve reviewing the company’s financial statements, analyzing industry trends, and considering the company’s growth potential and risk factors. The price of Tesla stock is determined by supply and demand in the market. It can fluctuate based on various factors, including the company’s financial performance, market conditions, and investor sentiment.
Buying or selling Tesla stock will depend on your investment goals and risk tolerance. Some investors may choose to hold a long-term position in the stock, believing that the company will continue to grow and perform well over time. Others may opt for a more active trading approach, buying and selling based on short-term market movements and attempting to capitalize on price fluctuations. Regardless of your approach, it is essential to carefully consider the risks and potential rewards of investing in Tesla stock.
Opening a Trading Account to Buy Tesla Stock
Before buying Tesla shares, you need to open a trading account with a suitable platform that offers access to US markets.
See our selected options:
- Interactive Investor
- Hargreaves Lansdown
- AJ Bell
When choosing a trading platform, it’s important to consider the costs involved. Many platforms charge a fee for trading shares, and some also have an annual fee for keeping the shares.
Additionally, ensure the trading platform has a robust research and reporting section to help you make informed decisions.
When opening a trading account, consider factors such as:
- Your investment objectives
- The amount to invest
- The investment timeframe
- Your level of risk tolerance
- Your capacity to absorb potential losses
Tesla’s ticker symbol is TSLA, and it is traded on the Nasdaq market in the United States.
The price of Tesla shares can change for various reasons. One such reason is currency risk, which can affect the value of your shares in British pounds. Remember that investing in US shares, such as Tesla, risks exposure to foreign exchange.
You’ll encounter various fees when buying Tesla shares on different trading platforms. These typically include a foreign exchange fee and a slightly higher trading fee for buying US shares.
It is important to note that exchange rates and share prices are subject to change in real time, so the costs presented should be used as a reference only.
To minimise fees, consider selecting a brokerage account with no trading commissions, helpful trading tools, and no account or inactivity fees. Also, fund the purchase of US shares from a US dollar account to avoid the foreign exchange fee.
Funding Your Account
Once your trading account is set up, you must deposit money to fund your investment. Be aware that a foreign exchange fee (typically 1% of the trade) is applicable when buying shares in US dollars. However, as mentioned earlier, this fee can be avoided by funding the purchase from a US dollar account.
Investing in US shares also has tax implications. Here are some key points to consider.
- Profits on US shares are taxable under capital gains tax (CGT).
- Exemptions include holding them in an individual savings account (ISA) or self-invested personal pension (SIPP).
- Ensure you have a valid W-8BEN form if you wish to benefit from a 15% reduction in withholding tax on qualifying US dividends and interest.
Researching Tesla Before Investing
Before investing in Tesla shares, it is imperative to analyze the company’s financial performance, industry trends, and competitors to ensure a sound investment.
You can find additional information regarding Tesla on the company’s investor relations page.
In 2022, Tesla’s sales/revenue reached $81.5 billion, compared to $53.8 billion in 2021 and $31.5 billion in 2020. Notably, their profit for the year in 2022 was $12.6 billion, more than doubling since 2021.
It’s also essential to examine the electric vehicle industry and market trends to understand Tesla’s standing relative to its competitors.
The electric vehicle industry is growing quickly, with many companies entering and investing in research and development.
Tesla continues to dominate the luxury EV market, contending with competitors such as:
- General Motors
Tesla’s Financial Performance
Tesla’s financial performance showcases its impressive growth and profitability. In the second quarter of 2023, Tesla reported revenue of $24.927 billion, representing a 47.2% increase year-over-year.
Furthermore, Tesla’s profit for the year totalled $12.6 billion, more than doubling since 2021. These results have exceeded analysts’ expectations and demonstrate Tesla’s robust financial health.
Key metrics used to evaluate Tesla’s value include the P/E ratio, PEG ratio, and EBITDA, which help assess the company’s profit margins.
Understanding these metrics and considering Tesla’s financial health is vital when deciding whether to invest in the company.
Industry Trends and Competitors
The electric car industry is growing fast, with many companies joining and investing in research and development.
This has increased competition and innovation, which can impact Tesla’s market position. Despite increasing rivalry, Tesla continues to be the unrivalled frontrunner in the high-end EV market, with their cars being the most in-demand.
As an investor, staying informed about industry trends and Tesla’s competitors is crucial. Having a thorough knowledge of the electric vehicle market scenario will assist you in making educated choices regarding your investment in Tesla stocks.
Investment Strategies for Tesla Shares
When investing in Tesla shares, it’s essential to consider the best strategy for your financial goals. One popular approach involves a lump sum purchase, where you invest a significant amount simultaneously.
Alternatively, you can use pound cost averaging, a strategy employed in the stock market, which may result in paying less per share on average over time.
Each investment strategy has its advantages and drawbacks. Pound cost averaging protects if the share price decreases after your purchase, as the average share price will be invested over the entire period. Investing slowly may not lead to higher value if the share price increases. Additionally, there might be additional fees for trading shares.
It’s essential to carefully consider which strategy aligns with your financial goals and risk tolerance.
Placing an Order to Buy Tesla Shares
Once you have thoroughly researched Tesla and chosen an investment strategy, it’s time to place an order to buy Tesla shares.
To do so, log in to your investing platform, enter the ticker symbol TSLA, and execute the order. When placing an order, you can choose between different order types, such as a market order, which executes the trade at the best available price, or a limit order, where the trade is executed only when the share price reaches a specific price or lower.
You can also set a stop-loss order, which allows you to sell your shares at a fixed price in order to limit potential losses. This type of order can be beneficial when investing in individual stocks like Tesla, where the share price can be volatile.
Exposure to Tesla Through Exchange Traded Funds (ETFs)
If you’re hesitant to invest directly in Tesla shares, you can consider investing in an exchange-traded fund (ETF) with exposure to Tesla. With ETFs, you can invest in stocks, bonds, and commodities all at once, providing diversification and reduced risk.
By investing in an ETF, you can gain exposure to Tesla while mitigating the risks associated with investing in individual stocks.
Ensure that an ETF with exposure to Tesla aligns with your investment objectives by researching the fund’s holdings, fees, and historical performance. Remember that investing in ETFs still carries risks, and it’s essential to monitor your investment and adjust your holdings as needed.
Monitoring and Selling Tesla Shares
After investing in Tesla shares, monitoring the company’s performance and making any necessary adjustments to your holdings is crucial.
Here are some steps to follow.
- Regularly review financial reports, news, and industry trends to stay informed about Tesla’s performance and prospects.
- If you decide to sell your Tesla shares, log in to your investing platform.
- Enter the ticker symbol TSLA.
- Select the desired quantity you wish to sell.
When deciding to sell Tesla shares, be aware of the tax implications. You may be subject to capital gains tax (CGT) if you have made a profit by selling your shares. CGT payments are mandatory in this situation.
For guidance on navigating the tax implications of selling Tesla shares, consult a financial adviser or tax professional.
Tesla Dividends and Stock Splits
It’s essential to understand Tesla’s dividend policy and history of stock splits when investing in the company. Currently, Tesla does not provide dividends to its shareholders. As a result, investors must rely on capital appreciation as a source of returns.
Tesla has boosted its stock prices by executing two stock splits since it became a publicly traded company. These splits have made Tesla’s stock more accessible to a broader range of investors. Stock splits may make the shares more accessible to investors as the share price decreases.
Understanding Tesla’s dividend policy and stock split history can help you set realistic expectations for your investment returns. While the lack of Tesla pay dividends may be a drawback for some investors, Tesla’s strong growth potential and market leadership make it an attractive investment for many.
Tesla’s Leadership and Future Outlook
Tesla’s leadership, especially Tesla’s chief executive officer Elon Musk, plays a crucial role in the company’s success and future outlook. As the founder of Tesla and currently the wealthiest individual in the world, Musk’s vision and drive have shaped the company into a dominant force in the electric vehicle and clean energy sectors.
While Tesla faces increased competition and market challenges, its strong foothold in the industry and ambitious growth plans, such as its Master Plan 3, indicate a promising future for the company. As an investor, it’s essential to stay informed about Tesla’s leadership and future outlook to make well-informed decisions about your investment in Tesla shares.
Risks and Rewards of Investing in Tesla Stock
Investing in Tesla stock comes with both risks and rewards. On the one hand, Tesla has demonstrated strong financial performance, high demand for its vehicles, and expansion of gigafactories, which solidify its market position.
However, there are potential risks to consider, such as Tesla cars being too expensive, battery shortages, low gas prices, and increased competition in the electric vehicle market.
Before investing in Tesla shares, carefully weigh the potential risks and rewards. Consider factors such as market volatility, industry trends, and Tesla’s long-term growth prospects. If you are uncertain about the appropriate investment, it is highly recommended to seek financial advice.
In conclusion, investing in Tesla shares offers an exciting opportunity to participate in the electric vehicle revolution and clean energy movement. Investing in Tesla can be a rewarding experience if you understand the market position, financial performance, and industry trends of the company.
Consider factors such as fees, trading platforms, investment strategies, and potential risks before diving into the world of Tesla shares. A successful Tesla investment can be navigated with thorough research and careful planning.
Frequently Asked Questions
Can I buy Tesla shares?
You can buy Tesla shares through an online broker by opening a brokerage account and depositing the necessary funds. In addition, you will need a smartphone or computer, an internet connection, and your passport or driving license.
The ticker symbol for Tesla is TSLA, and the company is traded on the Nasdaq market in the US with trading hours from 2.30 pm – 9pm (UK time).
You may also buy US shares through most brokerage accounts and a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account.
Can I buy Tesla shares in the UK?
Unfortunately, Tesla is not listed on the London Stock Exchange, so you will need to open a brokerage account with US market access to buy their shares in the UK.
The Telegraph recently reported that British armchair investors are now able to purchase American stocks such as Tesla more easily.
Is Tesla a good stock to buy in 2023?
See our broker recommendation above for buying, selling or neutral on Tesla Stock.
Does Tesla offer dividends?
Tesla does not offer dividends.
What are the tax implications of holding US shares?
Holding US shares has tax implications in the form of capital gains tax unless kept in an ISA or SIPP.
About Tesla Inc
Tesla, Inc. designs, develops, manufactures, leases, and sells electric vehicles, and energy generation and storage systems in the United States, China, and internationally. The company operates in two segments, Automotive, and Energy Generation and Storage. The Automotive segment offers electric vehicles, as well as sells automotive regulatory credits; and non-warranty after-sales vehicle, used vehicles, body shop and parts, supercharging, retail merchandise, and vehicle insurance services. This segment also provides sedans and sport utility vehicles through direct and used vehicle sales, a network of Tesla Superchargers, and in-app upgrades; purchase financing and leasing services; services for electric vehicles through its company-owned service locations and Tesla mobile service technicians; and vehicle limited warranties and extended service plans. The Energy Generation and Storage segment engages in the design, manufacture, installation, sale, and leasing of solar energy generation and energy storage products, and related services to residential, commercial, and industrial customers and utilities through its website, stores, and galleries, as well as through a network of channel partners; and provision of service and repairs to its energy product customers, including under warranty, as well as various financing options to its solar customers. The company was formerly known as Tesla Motors, Inc. and changed its name to Tesla, Inc. in February 2017. Tesla, Inc. was incorporated in 2003 and is headquartered in Austin, Texas.
No news, feature article or comment should be seen as a personal recommendation to invest. Before deciding to invest, you should ensure that you are familiar with the risks associated with a particular plan. If you are unsure of the suitability of a specific product, both in respect of its objectives and risk profile, you should seek independent financial advice.
The value of shares, ETFs and ETCs bought through a share dealing account, stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 67%-81% of retail investor accounts lose money when trading CFDs.You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. All trading involves risk.
Tax treatment of ISAs depends on your individual circumstances and is based on current law which may be subject to change in the future. ISA transfer charges may apply, please check with your provider.