Are you looking to invest in solar panels and electric vehicles or want to include an automobile industry heavyweight to your economic portfolio, you may choose Tesla Inc. Elon Musk has been the CEO of Tesla since 2008.
All the environmentally-conscious customers have become fans of Tesla. It provides a way to lessen the beginning of global warming and also to reduce carbon footprints.
Tesla is also providing solar-powered homes to people who are looking for clean and capable energy for their lifestyles.
So, are you ready to buy Tesla stock? Read this article to learn more about the company, how to buy a Tesla share and many more.
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How can you buy Tesla Stock?
Tesla does business on the NASDAQ exchange under the ticker symbol TSLA. You will not be able to make a stock purchase directly from Tesla unless you are an employee of Tesla. In case you want to purchase Tesla sticks you have to go through a broker.
Moreover, there are various options. You may try short-selling Tesla stock, sell or keep your Tesla stock based on its performance or look into Tesla stock options.
In case you do not have a brokerage account you need to first open one if you want to purchase TSLA shares. But we are recommending you try to invest the money that you can afford to lose. If you are looking for “how do I purchase Tesla stock” you may follow the steps given below:
Step 1: Buy through your brokerage
After creating your brokerage account and setting it up you may either purchase a Tesla stock at market price or decide to purchase a call or a put option on the Tesla stock. In case you have chosen to purchase it at market price you will be able to hold onto the stock for a long time until you want it to sell.
But if you have chosen a call or put option, you will be able to trade it only for a limited time. If you are purchasing a call option you will want the stock value of Tesla to rise before selling it.
In case you have chosen a put option you will want the stock value of Tesla to decrease before selling it.
Step 2: Choose a strike price
A strike price is known as the price that you want to pay for buying a stock option at a premium. For example, if the current market value of Tesla stock is $664, you may set a strike price of $650 to purchase put options.
If you find that the Tesla stock value has dropped below your sticker price of $650 shortly, you will be able to sell the put options at that time to earn a profit. For example, if the Tesla stock value drops to $640 you will be able to make a profit of $10 per put, minus the premium.
Step 3: Choose an expiration date
There is an expiry date in every put and call option. After the expiry date, the options held by tfs investor become invalid. You may set the expiry date anywhere between 1 week to 2 months or even a couple of years.
You need to set the expiry date very carefully as it offers the door for prospects to trade your call and put options freely. You need to keep in mind that the longer you will set an export date the more premium you will have to pay on the options bought.
Step 4: Decide how many contracts you want
Every call or put option that you buy of a certain stock is allocated with a contract for 100 shares of stock. You may choose the number of contracts you wish to purchase considering your budget and how you feel about the prospects of the company. You may also consult a broker or a financial advisor before making a decision.
Step 5: Watch stock prices
Sometimes Tesla stocks become overrated. You need to then hold the stick long enough to pull value from your holdings. Some people question whether they should sell Tesla stock as they are not sure whether it may go up or whether it will be overtaken by other EV manufacturers. If you are holding Tesla stocks you should keep watching daily Tesla stock prices to take advantage of the stock options.
Should I invest in Tesla?
If you are going to purchase shares in Tesla you need to first decide whether you should invest in Tesla stock or not. The reasons to invest in Tesla are as follows:
- You wish to invest in a company driven to grow the adoption of sustainable energy.
- You have researched Tesla thoroughly and figured out how it makes money.
- You have an adequate idea about the risks of investing in Tesla along with the chance that shares may lose value.
- You wish to invest directly in stocks and have adequate time to follow the company.
- You have faith in the strategy of Tesla and you are sure that it will improve its revenue and earnings at an above-aggregate rate over the long term.
- You are not required to earn dividend income.
- You are planning to hold shares for the long term and ride out any near-term volatility.
- You are sure that Elon Musk is capable enough to lead Tesla and manage all his other duties.
On the other hand, being an investor you may choose not to purchase shares of Tesla for the following reasons:
- Perhaps you require the money that you are going to invest in Tesla stock for some emergencies or for you to have a plan to purchase something big within the next three to five years.
- You are worried about the valuation of the company.
- You have not done adequate research on Tesla and need to know what it does and how it makes money.
- You are concerned about the economy, your job, health problems within your family or other pressing issues.
- You do not have adequate time to invest directly in stocks and follow Tesla.
- You are on the verge of your retirement and require dividend income.
- The values of Elon Musk do not match with yours.
- You are worried about the risk that shares may lose their value.
Is Tesla profitable?
Growth of income is one of the primary drivers of the stock price of a company over the long term. After facing losses for years, at last, Tesla reached the corner of profitability in 2020.
The profits of the company have flooded over the last two years. It was doubled in 2022 and reached a record of $12.6 billion.
Moreover, Tesla is free-cash-flow positive. The company created $14.7 billion of operating cash flow in 2022 and $7.6 billion of free cash flow which helped to improve the company’s cash and investments balance to $22.2 billion against only about $3.1 billion of debt and finance leases. In this way, Tesla was put into a strong economic position.
The rapidly growing profits of Tesla should help power its stock over the long term. If the company keeps growing its earnings at an above-average rate, in the coming years the share price should gain more value. Nevertheless, shares may also crash in value in case Tesla hits an earnings growth speed bump.
How to buy Tesla stock on eToro?
If you want to buy Tesla stock on eToro you need to follow the steps given below:
Create an eToro account
First, you need to create an account on eToro to buy Tesla stock on eToro. For this, you need to go to the website of eToro and hit the Join eToro button to get your account registered. After that, you need to enter your details, the user name, and email address and create a strong password for the account.
As soon as you enter all your details, you need to read and accept the terms and conditions and click on Create account. You will be able to register yourself successfully on eToro. You may now log in to your eToro account by entering your username and password.
Verify your eToro account and identity
After that, you need to verify your identity on the platform and also verify your account. You can verify your account by using your email address or text messaging. But in case you want to verify your identity you need to upload any government-issued identity card and address proof on your account.
This is a very important step as it makes sure that you are a fair person who has followed the KYC and AML guidelines. You may have to wait for some business days to complete the verification of your identity. But if you do not follow this process you will not be able to purchase Tesla stock on eToro and will not be able to get access to the different features and advantages of the platform.
Deposit money into your eToro account
If you want to buy Tesla stock on eToro there should be adequate money in your eToro account. That is why you have to deposit some money into your account. The platform allows you to make payments by using different payment methods like card payments, bank transfers, and online payment systems.
You may choose your desired payment method. Nevertheless, you need to keep in mind that every method of payment has a different processing time and fee structure.
You need to choose the Deposit Funds section on the dashboard and choose the payment method as per your choice. Then you need to enter the payment details like bank account number, personal details, and the amount you want to deposit and confirm the transaction.
Search the watchlist to find Tesla Stock
At the time of registering, logging in and depositing funds into your eToro account you will be able to find that the platform has an easy-to-navigate and user-friendly interface. After that, you need to search the Tesla stock to make a purchase.
For this, you need to go to the Watchlist on the dashboard and search for Tesla stock. As soon as you click on it the Tesla stock page will appear in front of you from where you may check the performance, historical data, and other details related to the stock. You need to hit the Buy option to start the buying process of the Tesla stock.
Verify the details and buy Tesla Stock on eToro
After that, you need to enter the details related to the quantity of Tesla stock you wish to buy. You may either choose the amount you want to spend or the amount of Tesla stock you wish to purchase. You need to click on Open Trade after entering the details to proceed with the purchase of Tesla stock.
In case you have not completed the account verification or identity certification process, the platform will prompt you to get this done at this time. After that, you should review and verify all the details to ensure that they are accurate. Then you need to choose the Confirm Trade option to buy Tesla stock on eToro.
Final Thought
If you want to grow your wealth one of the most convenient ways is to invest in stocks, commodities, cryptocurrencies or other assets. But you need to be very careful while choosing an asset. We recommend you choose an asset only after making a thorough analysis and research about its performance and prospects.
You may buy stocks on the eToro platform by using a few easy steps that we have mentioned above in the article. Tesla is one of the most popular and leading companies with lucrative future growth prospects.
Being one of the most innovative companies in the entire world Tesla has a charismatic and controversial leader which is driving the company towards an ambitious goal. If it becomes successful, the stock price of Tesla may go up more and will enrich its shareholders.
There are a lot of people who want to invest in Tesla stock. You may buy shares easily. But before buying any share you need to make sure you wish to invest in Tesla stock.
This guide will help you learn how to buy Tesla stock on eToro and enhance your possibilities of growing your wealth. So, what are you waiting for? Start investing in Tesla today to grow your wealth.
