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Whether they admire Elon Musk or simply enjoy the look and performance of his company’s cars, Tesla fans are devoted. It’s not hard to see why: From vehicles that have a bioweapon defense mode to solar roofs, Tesla (TSLA) is an industry disrupter on a massive scale.
That’s led to some impressive investment returns. According to its latest earnings report, Tesla’s revenues were up a whopping 80% year over year.If all of that makes you want in on Tesla’s electrifying growth, here’s everything you need to know to buy TSLA stock.
How to Buy Tesla (TSLA) Stock
1. Open a Brokerage Account
Opening a brokerage account is your key to buying and selling securities, like stocks, mutual funds and exchange-traded funds (ETFs). A brokerage is more than just your ticket to ride TSLA to the moon, though. It also has all the research and education you need to be a successful investor as well as different types of investment accounts designed for particular goals.
If you’re investing for retirement, go with a tax-advantaged individual retirement account (IRA). This type of account gets tax breaks from Uncle Sam that can help your money grow even faster.
If you want more flexibility with your investment account—say you want to save for a Telsa of your own in the next few years—you probably want a taxable brokerage account. These let you invest for any purpose or time frame, though you’ll have to pay taxes each time you sell an investment for a gain or receive dividend income.
All brokerages are not created equal, so you’ll want to be sure to compare the fees, available investments and services offered by at least a few to determine which is right for you. You can also peruse our picks for the best online brokers.
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2. Decide How Much to Invest
You probably aren’t able to sign over your whole paycheck to Elon Musk. That means you’ll have to ask yourself a few questions to figure out how much you can afford to invest in TSLA.
- What’s your budget? After you’ve paid all your expenses for the month, you’re free to save and invest whatever you have left. Ideally, you’re socking at least some of that into an emergency fund, if you don’t already have one, as well as retirement savings. But the rest you can put toward other investments, like Tesla.
- What’s TSLA’s current price? Stock prices are always fluctuating, but Tesla’s stock price has been more than $400 a share for the past year. Because of that, you may not be able to buy a whole share of TSLA yet. Luckily, some brokerages, like Charles Schwab, Robinhood, Fidelity and Stash, let you buy portions of stocks called fractional shares.
- What’s your investing strategy? Most people choose to invest one of two main ways: with a large lump sum all at once or with small amounts over time. This latter method, called dollar-cost averaging, may decrease your risk and help you pay on average less per share over time.
- What about your other investments? If you’re investing already, you want to make sure you think about how Tesla fits in your portfolio. “Any individual stock purchase should play a relatively minor role in the portfolio of the average investor,” said Chip Workman, a certified financial planner (CFP) with The Asset Advisory Group. “A good rule of thumb is that no individual stock should make up more than 5% of a portfolio.”
3. Review Tesla’s Performance and Potential
Before buying Tesla stock—or any stock—it’s wise to do some research into the company’s financials, performance and future outlook. The easiest place to get started is through a company’s annual reports (Form 10-K) and quarterly reports (Form 10-Q). Public companies like TSLA are required to publicize detailed information about their financial health in these.
You can find these on Tesla’s investor relations site or by searching the Securities and Exchange Commission’s (SEC) database.
You may also turn to experts for their input. Brokerage companies frequently put out commentary on major stocks and industries, and third-party evaluators like Morningstar provide comprehensive analysis.
When you combine financial data with expert insight, you’ll be able to decide how much of your money you want to put into Tesla.
4. Decide Your Order Type and Place It
Once you’ve decided how much you want to invest in Tesla, you can buy your first shares. You’ll need to log into your brokerage account and enter Tesla’s ticker symbol (TSLA) and the number of shares you want to buy or the dollar amount you want to invest.
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.
Because Tesla is traded on the Nasdaq exchange, you can buy it Monday through Friday from 9:30 a.m. until 4:00 p.m. ET. If your brokerage provides access to pre-market and after-market trading, you can continue to place orders for a few hours before or after the market is open. Any orders received outside of hours you can trade during will be placed as soon as the exchange opens again.
5. Evaluate Your Investment
Whether you invest in Tesla or other securities, it’s a good idea to periodically check in on their performance.
It’s probably easiest to start with annualized percent return. This way, you can compare how well TSLA performed over a year compared to other companies or investments. You can also revisit Tesla’s financial information to make sure it’s still moving in a positive direction.
Outside of comparing TSLA’s performance to that of other stocks, you may also want to measure it against industry benchmarks, like the and Nasdaq Composite Index. This will tell you how Tesla is performing compared to the market overall.
How to Sell Tesla Stock
When you’re ready to sell your Tesla stock, go to your brokerage’s trading platform and enter the number of shares or the dollar value you want to sell. You’ll also get to pick an order type here depending on if you want to sell at the current price or hold out for a particular one.
If you sell your shares for more than you paid and make a profit—known as capital gains—you will likely owe taxes, unless you’re selling shares held in a tax-advantaged account.
These capital gains taxes can vary based on how long you hold your TSLA shares. If you’ll be realizing large capital gains on your Tesla investment, it may make sense to talk to a financial professional about the impact the sale will have on your income taxes.
How to Invest in Tesla With Index Funds
Tesla (or any single stock, for that matter) can be a very volatile investment.
You can lower the risk you see extreme highs and lows by diversifying your investment holdings. An index fund, for instance, contains hundreds or thousands of individual stocks and is the “easiest way to diversify your portfolio,” according to Valerie Rivera, a certified financial planner (CFP).
TSLA currently makes up about 1.5% of the S&P 500, meaning 1.5% of each dollar you invest in an S&P 500 index fund goes to Tesla. If you want an index with even larger TSLA representation, you might consider investing in a Nasdaq index fund, where Tesla accounts for almost 4% of holdings.
If you’re unsure whether to invest in individual stocks or investment funds, aren’t sure how much you can afford to invest or don’t know what investment strategy to use, meet with a financial advisor for personalized guidance.
FAQs
"You can purchase Tesla shares by establishing a brokerage account through a trading platform like TD Ameritrade, E*Trade, or Charles Schwab, to name a few," she explains. Brokerage accounts are digital vehicles that allow you to purchase investments like stocks, ETFs, options, bonds, mutual funds, and more.
Can I buy Tesla shares directly? ›
No, you can't buy stock directly from Tesla at this time. To purchase shares, you will need to go through a broker. If you do not have a brokerage account, you will need to open one.
What is the cheapest way to buy Tesla stock? ›
If you're looking for a low-cost and safe way to buy Tesla stock in under five minutes from start to finish, the best broker is eToro. It's our number-one choice for buying stock in Tesla and other assets. eToro allows investors to put in as little as $10 when they top up their accounts or purchase an asset.
What is a fair price for Tesla stock? ›
TSLA Stock 12 Months Forecast
Based on 32 Wall Street analysts offering 12 month price targets for Tesla in the last 3 months. The average price target is $219.57 with a high forecast of $300.00 and a low forecast of $120.00. The average price target represents a 19.57% change from the last price of $183.63.
How much dividend does Tesla pay per share? ›
Historical dividend payout and yield for Tesla (TSLA) since 1971. The current TTM dividend payout for Tesla (TSLA) as of April 06, 2023 is $0.00. The current dividend yield for Tesla as of April 06, 2023 is 0.00%.
What is the easiest way to buy Tesla stock? ›
Can I buy stock directly from Tesla? No, you can't buy stocks directly from Tesla. You need to buy Tesla stock through a broker. If you don't already have one, choose a broker from our table above and open an account to get started.
How high will Tesla stock go? ›
Stock Price Forecast
The 35 analysts offering 12-month price forecasts for Tesla Inc have a median target of 210.00, with a high estimate of 320.00 and a low estimate of 85.00. The median estimate represents a +13.51% increase from the last price of 185.01.
How much does it cost to buy 100 shares of Tesla stock? ›
However, investing in 100 shares of Tesla stock would cost around $64,478, a considerable investment for most people.
Can i buy Tesla on Robinhood? ›
Can you trade Tesla stocks at Robinhood? Yes, you can trade Tesla stocks at Robinhood. At Robinhood the fees for US stock trading are the following: Stock and ETF trading is free.
What will Tesla stock be worth in 2030? ›
Tesla Stock Price Prediction 2025, 2030
Wallet Investor's experts believe the stock will be worth more than $2,500 by 2025, as depicted in the table below. Cathie Wood forecasts that the stock price will rise to more than $3,000 by 2030.
Stock Price Forecast
The 44 analysts offering 12-month price forecasts for Amazon.com Inc have a median target of 132.00, with a high estimate of 155.00 and a low estimate of 85.00. The median estimate represents a +28.72% increase from the last price of 102.55.
Who pays the highest stock dividend? ›
Comparison Results
| Name | Price & Change | Dividend Yield |
|---|
| IBM International Business Machines | 128.14 +0.24 (+0.19%) | 5.16% |
| CVX Chevron | 172.44 +0.35 (+0.2%) | 3.35% |
| EOG EOG Resources | 121.61 +0.32 (+0.26%) | 7.32% |
| ET Energy Transfer | 12.84 +0.08 (+0.63%) | 7.84% |
5 more rowsDividend Overview. TSLA does not currently pay a dividend.
What are the best stocks for dividends? ›
Dividend stocks can be a great choice for investors looking for passive income. View our list of high-dividend stocks, and learn how to invest in them.
...
9 high-dividend stocks.
| Symbol | Company Name | Dividend Yield |
|---|
| SPOK | Spok Holdings Inc. | 10.33% |
| CTRA | Coterra Energy Inc. | 9.75% |
| DVN | Devon Energy Corp. | 9.48% |
| CALM | Cal Maine Foods Inc. | 9.12% |
5 more rows6 days ago
Tesla is more profitable than its competitors, an advantage it will use in 2023. For Tesla, the choice is obvious: It will cut prices to juice sales. That will hit its margins, but Tesla has margin to spare.
Are Tesla stocks profitable? ›
Tesla reported record profits and record revenues for 2022, as the company heads into a new year facing a number of steep challenges. Profit for the year hit $12.6 billion, more than doubling since 2021 and beating the expectations of most analysts.
Why is Tesla stock cheaper? ›
Musk still owns approximately 15% of Tesla's common stock. Companies with high share prices often split their stocks to make the cost of one share more affordable for individual investors. The rationale is that some investors might be more inclined to buy a stock if it is trading at a lower price.
Should I buy a Tesla now or wait 2023? ›
Here's what we recommend. Tesla just did some drastic price cuts. Now is the perfect time to buy your 2023 Tesla Model Y if you are in the market for one. The Tesla Model Y long range is $52,990 as a base price and if you buy it before March 2023, the price becomes $45,490.
How much will Tesla stock be in 5 years? ›
The highest prediction stood at $430.33 while the lowest sat at $33.33. As for the Tesla long term forecast, Wallet Investor has estimated a Tesla 5 year forecast of $564.24 a share.
Is Tesla a good stock to buy 2023? ›
History suggests that the Nasdaq could head even higher and deliver solid gains by the end of the year. That's why it would be a good time for investors to buy shares of Tesla (TSLA -0.48%), a stock that has logged terrific gains in 2023 already and is looking good for more.
If you had invested $1,000 in Tesla 5 years ago, you'd have $4,973 today, a gain of 397% Tesla share prices have fluctuated quite a bit since the company went public in 2010.
How much $10000 invested in Tesla stock 10 years ago is worth now? ›
If you invested $10,000 with founder Elon Musk 10 years ago, your stake would be worth $2.1 million now. That works out to a more than 70% average annual return. The same $10,000 put into the S&P 500 during that time grew just 274% to $37,376. That's just 14% compounded annually.
What is the highest Tesla stock has ever been? ›
With the beginning of 2020, the price of Tesla share increased dramatically and reached its peak in November 2021, at 381.59 U.S. dollars per share. Since then, the price of Tesla share fluctuated significantly and stood at 207.46 U.S. dollars as of the end of March 2023.
What app has Tesla stock? ›
Stash offers two subscription plans: Stash Growth and Stash+. 3. Once you've finished your account, your Tesla shares will be added to your new portfolio. Once your market order of Tesla stock is complete, you'll officially be a shareholder of Tesla!
What app to buy Tesla? ›
Start by downloading the Tesla app and use it to confirm your registration and delivery location. These details are required to move forward. Additionally, use the Tesla app to select whether you plan to trade-in your current vehicle or finance your new Tesla vehicle.
Why to invest in Tesla? ›
Investing in Tesla is also an opportunity to support a company that is committed to sustainability and reducing its environmental impact. Electric vehicles produce significantly fewer emissions than gasoline-powered cars, and by investing in Tesla, you are supporting the growth of this cleaner form of transportation.
Will Tesla stock still grow? ›
A 19.1% growth rate is entirely realistic for the next few years. After turning slightly positive in 2020, Tesla's EVA increased by 1,195% in 2021 from a tiny base. Last year, it grew 121%. Those percentage increases are large and declining, which is expected as the company grows.
Is Tesla a buy sell or hold? ›
Tesla stock has received a consensus rating of buy. The average rating score is and is based on 58 buy ratings, 27 hold ratings, and 9 sell ratings.
Can Apple stock reach $1,000? ›
There is no limitation to the highest price that Apple's stock can reach.
Is Apple stock a good buy now? ›
Based on analyst ratings, Apple's 12-month average price target is $170.64. Apple has 3.63% upside potential, based on the analysts' average price target. Yes, go to the Analysts' Top Stocks tool to see stocks with a Strong Buy or Strong Sell analyst rating consensus, according to the top performers.
Bottom Line. Google is not a recession-proof stock, they're not guaranteed to crush the competition in the AI space, and the company isn't yet as cheap as Meta was during their 2022 debacle. But Google is a great business for a good price, and GOOGL stock offers great long-term compensation for those who buy the stock.
Is Walmart a good stock to buy? ›
What Do Analysts Say About Walmart? In the last 90 days, 29 of 41 analysts rated WMT stock as either a buy or strong buy. Their average price target for WMT stock is $161, which implies a potential upside of 13% from the closing price on February 24, 2023.
How to make $1,000 a month in dividends? ›
5 Steps For Making $1,000 A Month In Dividends
- Choose a desired dividend yield target.
- Determine the amount of investment required.
- Select dividend stocks to fill out your dividend portfolio.
- Invest in your dividend income portfolio regularly.
- Reinvest all dividends received.
They're paid out of the earnings and profits of the corporation. Dividends can be classified either as ordinary or qualified. Whereas ordinary dividends are taxable as ordinary income, qualified dividends that meet certain requirements are taxed at lower capital gain rates.
Can you become a millionaire from dividend stocks? ›
Can an investor really get rich from dividends? The short answer is “yes”. With a high savings rate, robust investment returns, and a long enough time horizon, this will lead to surprising wealth in the long run. For many investors who are just starting out, this may seem like an unrealistic pipe dream.
How much is Apple's monthly dividend? ›
Apple's annual dividend in 2021 was $0.88 ($0.22 paid quarterly). Based on Apple's stock price as of March 1, 2022 of around $163 per share, the dividend yield is approximately 0.50%.
Is Apple a monthly dividend? ›
When is Apple dividend payment date? Apple's next quarterly payment date is on Feb 15, 2023, when Apple shareholders who owned AAPL shares before Feb 09, 2023 received a dividend payment of $0.23 per share. Add AAPL to your watchlist to be reminded of AAPL's next dividend payment.
Does Apple offer dividends? ›
Yes. Learn more about Apple's dividend history.
How do I make $500 a month in dividends? ›
To build a dividend portfolio that pays you $500 in monthly dividends, you need at least 3 different stocks. One in each of the quarterly payment patterns. If you have 6 stocks, select 2 from each payment pattern. 9 dividend stocks, then choose 3 from each payment pattern.
What are the top 10 dividend stocks to buy? ›
All dividend and yield information is as of March 13, 2023.
- Dow Inc. ...
- International Business Machines (IBM) ...
- Verizon Communications (VZ) ...
- AT&T (T) ...
- Prudential Financial (PRU) ...
- Philip Morris International (PM) ...
- Walgreens Boots Alliance (WBA) ...
- 3M Company (MMM)
To live off of dividend income alone, you need to receive enough dividend payments each year to cover your expenses. Once you know how much income you need to cover your expenses, you can divide that by the average dividend yield of your portfolio to get a rough estimate of how much you need to invest.
How to trade in Tesla stock? ›
In order to receive a trade-in offer, you must submit details such as your VIN, mileage, zip code and photos in your Tesla Account. We will contact you when your trade-in offer is ready for review. Trade-in vehicles must be dropped at your delivery appointment.
How do I buy SpaceX stock? ›
How Do I Buy the SpaceX IPO?
- Log in to or create a brokerage account (if you do not already have one)
- Search for SpaceX shares via company name or Ticker/Stock symbol.
- Select the number of shares you wish to buy.
- Place your order with quantity and price.
- Once your trade is completed, you become a SpaceX shareholder.
One major reason why Tesla is valued so much higher than its peers is growth. The electric-car maker increased its sales by 37 percent last year. Wall Street analysts anticipate another 26 percent of upside this year. GM's sales rose 28 percent last year, while F shrank by 17 percent.
Does Tesla have a stock option? ›
“Tesla is perpetually the most active single-stock option at our firm,” said Mr. Sosnick. Traders have shelled out nearly $700 billion on options tied to Tesla since the start of 2022, more than any other stock or exchange-traded fund.
What is the name of Tesla's stock? ›
Tesla, Inc. Equity-NMS: TSLA
| Previous close : | $185.06 |
|---|
| 52W high : | $364.07 |
| 1Y : | -81.65% |
| 5Y : | -39.1% |
| EPS(TTM): : | 3.62 |
3 more rowsSpaceX is on the decline this week.
The current price is $0.00000473 per SPACEX.
Why did Tesla stock drop? ›
Tesla shares closed down 6% on Monday after the company's quarterly deliveries report led some investors to worry that more price cuts will be needed to drive sales, eating into margins. Over the weekend, Tesla reported first-quarter deliveries of 422,875 electric vehicles and production of 440,808 cars.
What is SpaceX stock called? ›
SpaceX is still a private company and, as such, is not available to the investing public. Therefore, currently, the SpaceX stock symbol doesn't exist.
Why to avoid Tesla stock? ›
Notable risks include Tesla cars being too expensive with tax breaks and that the construction of its Gigafactory (battery factory) taking longer than expected.
Who owns the most shares of Tesla? Elon Musk is Tesla's largest individual shareholder, owning 412.6 million shares, representing 13.04% of the stock. This valued Musk's stake in the company at $84.89bn. Other Tesla executives hold less than 1%.
How do I buy Tsla options? ›
Create or log in to your trading account. Go to our 'Watchlists' Select 'Tesla Options' Choose the Tesla option you want to trade on according to its strike price, expiry and whether it's a call or a put.
Where are Tesla options traded? ›
(TSLA) Option Chain | Nasdaq.
