Summary: Tesla is a famous automotive brand and one of the most valuable companies in the world, standing among the nine global economic titans that have surpassed the market cap of $1 trillion. This guide will detail how to buy Tesla stock step-by-step using a regulated brokerage like eToro.
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About Tesla
Founded in 2003 by Martin Eberhard and Marc Tarpenning, Tesla is a technological powerhouse that employs over 127,000 people around the globe. It is among the ten most valuable companies globally, has a worldwide recognized brand, and has occupied the leading position in the S&P 500.
Tesla has revolutionized the automotive market with electric vehicles like the Roadster, Models S, 3, X, Y, and the Tesla Semi truck. Besides cars, Tesla is committed to sustainable energy, as well as robotics and artificial intelligence, achieving breakthroughs in both with projects like Optimus.
Elon Musk, the CEO and former chairman of Tesla, is the world’s richest person and a polarizing figure due to controversies. Even without taking into account Musk’s considerable influence, Tesla has a global impact on the market and will likely continue to represent a dominant force in the foreseeable future.
How to buy Tesla stock: step-by-step
Tesla had the initial public offering of its stock on June 29, 2010, after which all investors could buy shares in the company without restrictions.
You can buy shares in Tesla in a five-step process described below:
Step 1: Choose a broker
Before you can buy TSLA, you need to gain access to the stock market. While there are several ways to do this, the simplest and most efficient way is via a regulated stock brokerage.
To securely buy Tesla stock (TSLA), we recommend the following:
- Commission-free stock and ETF trading;
- 2,000+ stocks from 17 exchanges;
- Fractional shares available;
- User-friendly platform.
Highly Rated Stock Trading & Investing Platform
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Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
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0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
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Copy top-performing traders in real time, automatically.
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eToro USA is registered with FINRA for securities trading.
Different investing platforms have various benefits and disadvantages. Sometimes, it boils down to personal taste; other times, their features synchronize better with different investing strategies. However, certain factors are always present regardless of your choice, so pay attention to the following:
- Range of offerings: Your investing platform should offer TSLA, but you should also validate the presence of other financial assets such as different commodities, various stocks, forex, and derivative assets like options, CFDs, and futures. These will come in handy once you decide to diversify your portfolio;
- Cost: Today’s industry standards are no-minimum accounts and 0% commission fees for stocks and ETFs. Do not accept anything less;
- Regulation and security: What platform you decide on must comply with the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) regulations. Check for two-factor authentication (2FA) policy and other advanced security measures;
- Fractional stock trading: Platforms that feature fractional stock trading allow you to buy stocks by the dollar amount, which benefits those with limited capital or traders seeking to pursue the dollar-cost averaging approach.
Step 2: Open and fund your account
When you select an online investing platform, you should register and verify your newly-created account. You will receive the instructions within a few minutes of creating an account.
After verifying, you need to transfer some funds to your account to buy Tesla stock. The usual payment options include a bank transfer, debit or credit card, and an intermediary transaction service such as PayPal (PYPL). Feel free to use whichever method works best for you.
Step 3: Decide how much you want to invest in Tesla stock
Deciding on the right amount of money to invest is vital to investing. Consider your budget, as going past it may cause serious issues if the investment fails.
To be safe, make sure you confirm the following:
- You have paid off all outstanding high-interest debt, e.g., personal loans;
- You have established an emergency fund worth at least three months of daily costs.
The correct amount also varies due to your investing approach, risk tolerance, and envisioned investment timeline.
Remember
Step 4: Place your order and buy Tesla stock
You have to place a trade order to purchase TSLA shares. Perform the following steps:
- Step 1: Log into your brokerage account and go to the company’s ticker stock symbol TSLA;
- Step 2: Type in the dollar amount or the amount of stock you want to buy;
- Step 3: Select the order type (market order or limit order) and place it;
- Step 4: Place the trade order.
Step 5: Monitor and manage your investment
Regularly monitoring and managing your portfolio of individual stocks is a core part of the investing process. Being diligent about it increases the chances of a successful investment.
Furthermore, you have to keep track of trends in the automotive industry, the renewable energy sector, and the general financial health of Tesla, as these all influence the price of TSLA stock.
Tesla stock price today
Pros and cons of buying Tesla stock (TSLA)
Pros
- Technological vanguard: Tesla pioneers innovation in the electric vehicle industry and renewable energy solutions. Investing in Tesla stock can lead to significant long-term gains if the company remains at the helm of the newest trends in technology;
- Dominant market presence: Tesla has reached the dominant position in the electric car market and has built a household name brand. It wields an enormous market share and has a considerable influence in its sector;
- Innovation: The company has made a reputation for its innovative features, driving customer demand and staying ahead of the competition in the market;
- CEO Elon Musk: Elon Musk has created an image of himself as a visionary and has a history of disrupting multiple industries. His leadership has the potential to foster innovation and thus make value for investors.
Cons
- Volatility: Individual stocks are highly volatile, and Tesla stock has not been immune to price swings. This can lead to huge gains and losses for investors;
- Competition: Traditional automakers have caught up with the trend and invested heavily in EV technology, increasing competition in the market. Tesla risks losing its market share if traditional carmaking companies manage to establish a foothold in the industry for themselves;
- Regulatory challenges: Tesla invests large sums into self-driving cars, which is a topic that fuels intense ethical and legal debate. The outcome of this dilemma will likely influence the company’s financial performance;
- CEO Elon Musk: While the wealthiest man of our time can be a boon to a company, he is a polarizing figure marred in controversy and known for impulsive business decisions, which can negatively influence Tesla’s position on the market.
Common mistakes to avoid when buying Tesla stock
Make sure to avoid these common investing mistakes:
- Lack of research: Research the stock in detail, along with the global electric vehicles market and renewable energy industry, before investing anything;
- Lack of strategy: Define your goals before you spend any money;
- Staking everything on one asset: Always diversify your portfolio;
- Falling prey to scams: Avoid illegal platforms and suspicious deals.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
FAQs about how to buy Tesla stock
Can you invest in Tesla?
As Tesla is a publicly traded company, the general public is free to buy its stock. So yes, you can invest in Tesla.
How to buy Tesla stock?
Investors can freely buy TSLA stock with a regulated online brokerage – like eToro.
Should I invest in Tesla stock?
The answer hinges on the current status of the EV industry and renewable energy solutions distributed by Tesla. Besides the stock face value and market trends, consider the company’s and its CEO’s media coverage, which both affect the price of TSLA stock.
How do I sell my Tesla stock?
Log into your brokerage, find TSLA, type in how much stock you want to offload, and click the ‘sell’ button.
Highly Rated Stock Trading & Investing Platform
-
Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.
-
0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
-
Copy top-performing traders in real time, automatically.
-
eToro USA is registered with FINRA for securities trading.
