How To Invest In Tesla Stock

Musk and Tesla reached a settlement agreement with the SEC over the offending tweets. As a result of the settlement, Musk and Tesla each paid a $20 million fine, and Musk was forced to resign from his chairman role on Tesla’s board. While Tesla has performed well overall, any individual stock can over- or underperform and past returns do not predict future results. Ark’s thinking is that Tesla currently has an advantage in autonomous technology, because of the visual data it gathers from its current fleet and leading artificial intelligence capabilities. It’s not totally out of the question that Tesla could surpass Waymo, as well as all the other companies racing to get an autonomous vehicle service out on the road, but it’s far, far from certain.

They also trade at an average price-to-sales ratio of 7.35, a 30% discount to Tesla. However, savvy investors can take advantage of a technique known as pair trading to buy Tesla today, even at its current ridiculous valuation. This is partially dictated by how much money you have to invest. But you should also think about how much of your portfolio you want to tie to Tesla’s business performance, and where you stand in your progress toward other financial goals. Read our review of Morningstar’s stock research offerings.) If you like what you see, your next step is to consider whether Tesla fits into the context of your current investment portfolio.

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Elon Musk owns 193.3 million Tesla shares, representing 20.7% of total shares outstanding, according to a 13G filing for the period ending December 31, 2019. Kirkhorn has been chief financial officer of Tesla since March 2019.

how to invest in tesla

By sticking to a long-term plan, you’ll be able to ride out the ups and downs of the stock. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate.

How Much Are Tesla Shares Worth? Tesla Share Price History

To help you get started, we’ll walk you through the process using our recommended broker eToro. Bear in mind that the Tesla stock split does not change much, but it can be somewhat confusing. The company’s earnings per share calculations change based on the new share price and you may have to adjust the new prices to pre-split figures. For example, when looking at Tesla’s all-time chart, the share price on the day of IPO is $3.84, adjusted to a 5-1 split. 80.5% of retail investor accounts lose money when trading CFDs with this provider. As for the trading platform, the broker offers a user-friendly trading platform that is available on any web browser or, you can download a mobile stock trading app to your smartphone. This broker also adapts the full functionality for seamless ‘on-the-go’ trading, so you can also get Tesla share price alerts notifications to your phone or email.

Take your time to evaluate brokers until you feel you can trust them with your wealth. According to a CNBC report, Elon Musk has increased his net worth by $140 billion, due in large part to the 650% rise in TSLA stock. If you had invested $1,700 on 100 shares of TSLA stock during its initial public offering in 2010, you would have made $63,300 profit on the stock at current market prices.

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The founder and CEO of Tesla, Elon Musk, is expected to unveil at least a couple of new vehicles by the end of this year. The company plans to launch a new Model S Plaid Plus with a new cockpit before the end of 2021. The opening of a new Gigafactory in Texas is also on the cards, so 2021 could be one of the most important years for Tesla yet. Tesla, to its merit, has been keeping up pace with its stated objectives as well. For instance, the company announced a plan to deliver 500,000 vehicles in 2020 before the economic recession came to light, and ended the year by delivering 499,550 vehicles worldwide.

  • That move has allowed it to monetize one of its best resources, its dedicated customer base.
  • Tesla is still a great company that has brought electric vehicles into the mainstream, and has achieved really impressive things.
  • At some brokers it’s as quick as opening a new Gmail account, at some brokers it takes a couple of days until they do some background check on you.
  • Despite Tesla’s sudden spike, the company’s faced past challenges that caused its market performance to falter.

By December 2019, its shares had reached an all-time high — with a share price of $393.15 — which even surpassed intraday highs reached when CEO Elon Musk sent how to invest in tesla his “funding secured” tweet. If you invested back then when the initial public offering’s price per share was just $17, your investment would have paid off.

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Lots of new investors take chances on long shots instead of buying shares of great companies. I prefer businesses like Amazon, Netflix, and Apple — they’re all on my best stocks for beginners list. A lot of people are investing in the company by buying stocks due to the hype that the company will be doing much bigger in the next few years to come.

Tesla’s CEO, Elon Musk recently announced that he would buy $100 million of the company’s stock as part of a secondary offering, which was completed less than two weeks ago. Secondary offerings often sink a stock’s value, but this wasn’t the case with Tesla.

how to invest in tesla

Nearly a decade later, a $1,000 investment in Tesla made in 2010 would be worth more than $36,000 as of Feb. 4, 2020, according to CNBC calculations. By comparison, a $1,000 investment in the S&P 500 would have earned a total return of just over 281% over the same period. Tesla is still a great company that has brought electric vehicles into the mainstream, and has achieved really impressive things. It could even one day grow into its current market cap, if a lot of things go right. However, even the $1,500 price target (based on a human ride-hailing service) seems dubious to me.

Tesla has rallied to new highs in a short period of time, leading to the news last week that the firm is going for a stock split. This is largely a technical event that doesn’t actually change the value of your investment. The stock split lowers the share price, but you receive more shares, so it all works out in the end. Tesla is a publicly traded company, which makes its stock available to anyone of age interested in purchasing equity. In order to become a shareholder, you’ll need to open a brokerage account.

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Then, following a jump on Monday, Tesla’s share price fell a further 5.5% last week, closing at $618.71 on Friday 26 March. Even buying shares in diversified mutual funds and ETFs is risky, but buying shares in a single business, like Tesla, is even riskier. Technical analysts look at stock’s price charts to identify patterns that could how to invest in tesla predict future price movements. The company was founded in 2003 and now produces four different vehicle models, all of which are electric. The company’s products also include battery energy storage, solar panels/roof tiles, and related services. On the same day, Musk also published a letter on Tesla’s website explaining his thinking.

Electric vehicles are complex and rely on a lot of technology and machinery. For example, electric cars need incredibly high capacity batteries. Without successful products, companies have nothing to sell and no way to produce revenue to keep the business running. Every company’s success relies on its ability to produce, maintain, and sell new products and services. The company could fail to capitalize on its opportunities, fall foul of bad luck, or be overtaken by a competitor. Today, the company is worth roughly $550 billion, making it the most valuable car company in the world.

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Prior to that, Kirkhorn served as vice president of finance, financial planning and business operations for the company from December 2018 and in additional roles since he joined Tesla in 2010. This depend on the platform you choose to buy Tesla shares in the UK.

As of March 2020, Tesla is valued at a market capitalization of $627.29 how to invest in tesla billion. Tesla’s daily stock value has been volatile to say the least.

Buying Tesla stocks has never been this easy than before, thanks to the technology that has simplified the stock trading for both literate and layman to investors. It has negatively affected the Tesla stocks in general, although, they have been gaining traction to hit $1000 per stock in early 2020. The market price at the time of writing this guide was trading at $833.5. However, this does not deter the Tesla enthusiasts and all the investors who look up to Elon Musk as their mentor in the business world.

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Keeping up with the markets and managing an investment portfolio requires background knowledge and thorough research. A financial advisor can access reports, financial statements, analytics data and advanced financial modeling software to help guide your investments. SmartAsset’s free tool matches you with financial advisors in your area in 5 minutes. If you’re ready to be matched with local advisors that will help you achieve your financial goals, get started now.

The point I am making is you have to have a long-term view on Tesla stock. By the way, Morgan Stanley thinks that Tesla stock is worth only $650, not $959.74, as it was on Friday, June 26. This is based on their estimate of an average $50,000 car price, 2 million units delivered, and an average EBITDA margin of 16.5%. ) stock have to take the long-term view to understand its value. It has risen 40% since my last article on the company on April 21 when I talked about its long-term value. That really seems to be the key to understanding the action in this stock. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research.

We invested in Tesla stock because we believe in the company and what it is doing. Because we believe in the company we also bought a 2015 Model S.


In addition, rather than just committing a one-time sum of money to the stock, consider how you can add money to your position over time. For example, while Tesla is well-known for its electric vehicles and its foray into autonomous driving, it’s not the only player and many deep-pocketed rivals are interested in its markets. The annual report is a great first step at finding out about the company, but you’ll want to do more than this. You’ll want to study what other companies are doing to compete, for example.