Hedge funds provide institutional investors with an opportunity to receive returns that are not closely tied to the performance of...
Here is how you can buy and invest in Tesla (TSLA) stocks, the leading global tech company that manufactures electric cars. The guide will also help you learn the processes involved in investing in the stock markets.
Buying stock shares as a future investment is turning out to be a lucrative business for many out there. Buying stocks from companies with a promising future, such as Tesla (TSLA) stocks, can earn handsome profits, and also in dividends paid out depending on the company for you.
We’re sure you have heard of Mr. Russel Gremel from Chicago who invested in 20 Walgreens stocks worth $1000 back in 1953. They have multiplied over the past decades, whereby, they are currently worth more than $2 million. He recently donated then to a wildlife conservative program.
Sounds a great deal so far? If so, then let’s delve deeper to understand how to venture into the stock markets and Tesla specifically.
There are many ways of acquiring company’s stocks nowadays ranging from online brokers to using a full-service broker or even visiting the company directly. Either method should not deter you from acquiring the desired stocks based on the workload needed to do, after all, the returns might be worth it.
Before investing in stock markets, it is advisable not to follow the mass without learning the rules of the game first. Remember this is the hard-earned money that you are investing to get a profit at the end of the day. You do not want to buy over bought stocks that will nosedives immediately you acquire them.
In this guide, we will go over step by step on how to invest in Tesla (TSLA) stocks specifically.
Tesla Inc. (NASDAQ: TSLA) formerly known as Tesla Motors, Inc. is an American company that specializes in the design and assembly of electric vehicles, and also other forms of clean energy production. The company has recently expanded its scope to produce solar panels, and also solar roof tiles.
Tesla has been scaling its business internationally trying to meet the high demand for electric vehicles globally. This is in line with most governments, and also non-governments organizations’ agenda to push for clean energy, which does not accelerate the current rate of climate change. Tesla has been at the forefront of reverting climate change to make the earth a better habitable place for mankind.
Since the company started, it has not enjoyed a profitable year, however, only several individually profitable quarters that have been reported. Whereby, the recent profitable quarter includes the quarter-ending of September 2018, December of the same year, that of September 2019 and also the one for December 2019.
The company has also reported production output of more than 367,500 vehicles by end of 2019. As of the same year, the company’s operating income stood at -$0.07 billion, whereas, its net income at -$0.86 billion. Its total assets were valued at $34.3 billion (February 2020).
During the recent report on the company that was released on February 20, 2020, the company reported having a market capitalization of $166 billion. For this reason, the cost per stock shot up to trade above $700 at the time of writing.
However, due to the unfolding’s of the coronavirus (COVID-19) outbreak in China that is spreading as of Feb. 2020 to other countries, the company’s operations have been halted if not delayed.
With its branches in mainland China closed to help the local authority control the deadly virus, the company continued counting losses due to the delay in the delivery of customer’s requests. Most customers in the greater Asian region who were expecting their units to be delivered by February have resulted in waiting.
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.
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. 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.
Although Tesla is promising a bright future based on its records and its current business statistics, some analysts are, however, citing the recent bull rally in the Tesla stocks to have been fueled by crazy speculation trading. It has resulted in a bull rally which analysts are referring to be in the ‘late-cycle’ of the market.
Well, now having been familiar with Tesla Inc. and its stocks so far, let’s find out how to acquire and invest in the stocks.
After doing a thorough background check on the company, and decided it’s time to buy some Tesla stocks, the next thing to do is find a convenient broker account that you will use. A good broker is based on the services offered, and also the commission charged during transactions.
Since stock trading has moved from the old way of floor trading as seen in the old times of the New York Stock Exchange, to an online brokerage account. We will mostly concentrate on buying tesla stocks online, then touch a bit on the others
Most online broker accounts are easy to open and operate. The only thing you need to do is provide proof of identification and then choose how to fund your account. In most accounts, you have the option of funding your account either electronically or even by writing a mailing check. (Topic for another time)
Since you would want an online broker with the cheapest commission charges and best technical support to buy your Tesla Stock. Then, considering these factors before registering for an account is recommended.
You might find some brokers even offering commission-free on trading stocks. By finding more than three brokers and comparing their services, you will get the one offering the best service in your jurisdiction.
After you have chosen a convenient broker and registered for an account, the next thing is picking Tesla (TSLA) stocks from the long list of stocks provided. Don’t feel intimidated by the words and vocabulary used by the brokers. Here are some of the terms with their meanings.
Bid Price – the maximum price that a buyer is willing to pay for one Tesla stock.
Ask Price – the minimum price one is willing to pay for the Tesla stock.
Spread – the difference between Bid price and Ask price.
Market Order – a request that you make through the online broker to buy the Tesla (TSLA) stocks with the best price in the market.
Limit Order – a type of order made to buy or sell the Tesla Stocks at a specified price.
Stop Order – an order to buy or sell the Tesla shares once they move past a particular point, to ensure higher probability of winning the trade.
Stop Limit Order – a conditional trade that is set to combine the features of both the limit order and the stop loss.
It is then after you buy the Tesla stocks that you practice the virtue of patience in order to grow your portfolio. Remember, trusting your fundamental analysis and also your technical analysis is healthy for giving the market a chance to move about as it respects your prediction.
If you are a long term investor, then buying and holding will be the art of the game, wherein, if you a short-term trader, you can make use of the technical tools and features offered by your online broker.
As you have read, buying Tesla (TSLA) stocks now has become as easy as buying commodities in a physical outlet. Thanks to the developing technology, investors will not need to shout on the floor of the security exchanges to buy their stocks.
The bid and ask button does all the noise for you as the brokerage company finds the best deal according to your order. Investing with Tesla will require a lot of discrete moves since the stocks are turning out to be very volatile due to the high speculation with the investors.
Maybe, by following our updates on Tesla and its stocks will give you a clear insight into the right time to invest in stocks. With the fast pace that the Tesla stocks are becoming popular, they might be starting their bull rally to trade like those from Amazon.
Depending on the amount of Tesla (TSLA) shares you want to buy, the kind of broker you use will significantly affect the outcome of the trades. Although not much, a broker charging high commission fees will eat up your profits slowly by slowly.