Everything You Need To Know About How To Buy Tesla Stock
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Tesla has seen a tremendous surge in its stock over the past years and many investors have noticed this. I remember hearing about a friend of mine who had around 10,000 options on Tesla which he expected to rise. When the stock multiplied by ten, he made a killing.
I also got the chance to get in early; someone let me know about Tesla soon after it went public when it was priced at $20 per share. If I had invested $1k then, it would now be more than $170k! In this piece we will discuss how to acquire Tesla shares and if it is worth doing so.
The story behind Tesla’s Stock
On June 29th, 2010, Tesla held an IPO for $17 per share that closed at over $24 on the first day. However, by March 2011, the stock had fallen below $5. Suppose you consider buying Tesla shares for $5 each; they are practically worth near to $650 currently, taking into account the assumed 5-for-1 stock split done in 2020. Before split, an investment of $5 would worth up to $680. Finding ten-baggers (a tenfold increase in investments) is not usual; making it a 170-bagger would have been Tesla.
Yay for Fractional Share Investing!
Is now too late to invest in Tesla? Many people think so because of its supposed high cost but fractional share investing has changed everything about that. Examples of brokers offering fractionally traded shares include Fidelity (Stocks by Slice), Charles Schwab (Schwab Stock Slices), and Robinhood whereby customers can purchase stocks according to their preferred amounts instead of numbers of shares owned which means that somebody buying into Tesla with two thousand dollars today will have approximately three and one-fourth shares in their portfolio right now. This method is for young investors who have little cash and makes high-priced stocks more affordable.
Why You Should Invest in Tesla
The All-Electric Future
There is a real electric vehicle (EV) revolution, with governments advocating for more EVs and some aiming at phasing out gas cars by 2035. As the leading company in the market, Tesla has an edge through subsidies and infrastructure development.
Tesla Vs Rivals
Tesla’s battery technology along with its ecosystem is advanced that reduces range anxiety while providing a charging network. Other models are still catching up and so Tesla remains the most practical option for long drives.
Beyond EVs
Additionally, Tesla generates revenues from solar panels as well as power storage hence it may dominate other areas such as self-driving cars. Moreover, thanks to its millions of vehicles’ data fed on road, Tesla excels in self-driving technologies which might be disruptive to many industries.
Tesla Stock Downside
High Valuation
Critics argue that shares of Tesla are too expensive compared to established car makers such as Ford which sells more cars but has a far lower share price. It could be unsustainable if Tesla maintains its lofty valuation.
Autos Are Changing
Traditional automakers are ramping up their efforts in electric vehicles (EVs). They are making massive investments into electric platforms like General Motors, Ford and Volkswagen who might challenge Tesla’s position in the market.
Fresh Contenders Arrive
More players can enter the EV business from tech companies like Apple, Google, Microsoft, Amazon or even Facebook thus adding competition and decreasing margins at Tesla.
Self-Driving Cars Aren’t Ready Yet
As much as Tesla is leading in autonomous autos; there are technical flaws and regulatory hurdles it faces. Any major incidents could affect the whole industry and therefore alter prices of TSLA too.
My Point Is This
To purchase Tesla shares, an individual needs to open a broker account with one of the following firms: Fidelity, Charles Schwab, Interactive Brokers, or Robinhood. After that you can fund your account and buy stocks. The question is whether it is advisable to own Tesla stock at all. There are good reasons both for and against investing in the company. There are some dangers connected with Tesla but also there may be huge profits possible. Weigh the pros and cons before you decide on anything.
Senior Writer • Business and Information Trends Writer
Lucas writes long-form, investigative articles that explore the deeper implications of business and information advancements.
