You probably won’t be able to give Elon Musk your entire paycheck. To figure out how much you can afford to invest in TSLA, you’ll need to ask yourself a few questions.
- What is your financial plan? After you’ve paid all of your monthly bills, you can save and invest whatever money you have left. If you don’t already have one, you should put at least some of that money into an emergency fund, as well as retirement savings. The rest, however, can be directed toward other assets, such as Tesla.
- What is the current price of TSLA? Stock prices fluctuate all the time, but Tesla’s stock has been trading at more than $400 a share for the past year. As a result, you might not be able to purchase a whole share of TSLA quite now. Fortunately, several brokerages, such as Charles Schwab, Robinhood, Fidelity, and Stash, allow you to acquire fractional shares of stocks.
- What is your approach to investing? The majority of people invest in one of two ways: enormous lump sums all at once or little amounts over time. This latter strategy, known as dollar-cost averaging, can help you reduce your risk and spend less per share on average over time.
- What about the rest of your assets? If you’re already an investor, you should consider how Tesla fits into your portfolio. “According to Chip Workman, a certified financial planner (CFP) with The Asset Advisory Group, “every individual stock purchase should play a relatively minimal impact in the average investor’s portfolio.” “A decent rule of thumb is that no single stock should account for more than 5% of a portfolio’s value.”
Review Tesla’s Performance and Potential
It’s a good idea to do some study into Tesla’s financials, performance, and future outlook before buying Tesla stockor any stock, for that matter. The annual reports (Form 10-K) and quarterly reports of a firm are the best places to start (Form 10-Q). Companies that are publicly traded, such as Tesla, are obligated to provide specific financial information in these reports.
These can be found on Tesla’s investor relations website or in the Securities and Exchange Commission’s (SEC) database.
You could also seek advice from specialists. Brokerage firms routinely issue commentary on key stocks and industries, while third-party evaluators such as Morningstar give in-depth research.
You’ll be able to select how much of your money you want to put into Tesla when you combine financial facts with expert knowledge.
Decide Your Order Type and Place It
You can purchase your first Tesla shares once you’ve decided how much you wish to invest. Log into your brokerage account and type in Tesla’s ticker symbol (TSLA), as well as the number of shares or dollar amount you want to invest.
You can buy shares at their current price with a basic market order, or you can use a more sophisticated order type like limit or stop to acquire TSLA only if its price falls below a specified level.
Because Tesla is traded on the Nasdaq exchange, you can buy it from 9:30 a.m. to 4:00 p.m. ET Monday through Friday. You can continue to place orders for a few hours before or after the market opens if your brokerage offers pre-market and after-market trading. Any orders submitted outside of the trading hours will be filled as soon as the exchange reopens.
Evaluate Your Investment
Whether you invest in Tesla or other securities, it’s a good idea to monitor their performance on a regular basis.
Starting with annualized percent return is arguably the most straightforward option. This allows you to compare TSLA’s performance over the course of a year to that of other companies or investments. You can also check Tesla’s financial data to see if it’s still going in the right path.
You may also wish to compare TSLA’s performance to industry benchmarks, such as the S&P 500 and Nasdaq Composite Index, in addition to other stocks. This will show you how Tesla is performing in comparison to the rest of the market.
Open a Brokerage Account
You’ll need to open a brokerage account to purchase and sell securities like stocks, mutual funds, and exchange-traded funds (ETFs). However, a brokerage is more than just a way to ride TSLA to the moon. It also includes all of the information and instruction you’ll need to be a successful investor, as well as many sorts of investment accounts tailored to specific objectives.
Tax-advantaged accounts are probably better for long-term investing, such as for retirement or a child’s college fund. Individual retirement accounts (IRAs) and 529s, for example, receive a unique tax credit from Uncle Sam, which can help your money grow even faster. However, you can only access the money in them without penalty at specific times (like as retirement) or for specific causes (such as your child’s educational expenses).
A taxable brokerage account is best if you want greater flexibility with your investment accountfor example, if you want to save for your own Telsa in the next several years. These allow you to invest for any reason or for any length of time, albeit you will have to pay taxes each time you sell an investment or earn dividend income.
Because not all brokerages are made equal, you should examine the fees, available investments, and services offered by at least a handful to figure out which one is best for you. You can also look through our recommendations for the finest online brokers.
Purchasing Tesla stock is simple once you’ve chosen the right brokerage for you: Simply enter its ticker symbolTSLAalong with the number of shares you want to purchase. You can also specify a monetary amount and let your broker figure out how many shares (or sections of shares) you can purchase.
Purchasing TSLA, however, does not end here. To make sure you’re investing your money as wisely as possible, follow the next four steps.
What are my options for investing in Tesla?
Financial disclosures can assist investors better understand a company’s risks, allowing them to make more educated investment decisions.
The following are Tesla’s Ratings Summary and Factor Grades (as of November 1, 2021):
Select a Brokerage
An investor will need to open an online brokerage account if they don’t already have one. Most brokerages have similar costs and services, but others have more advanced features, such as user-friendly mobile apps, 24-hour assistance, or a more advanced desktop client. Some brokerages additionally provide additional data visualization tools to help investors better understand and track their assets. Investors can choose a broker based on whatever aspects are most essential to them.
How can I get Tesla stock?
Tesla’s stock trades under the ticker name TSLA on the NASDAQ exchange. You’ll need to work with a broker to obtain shares. You will need to open a brokerage account if you do not already have one. Tesla does not have a direct stock purchase program at this time.
Are Tesla bonds affordable or prohibitively expensive?
Finally, we believe that Tesla’s improving credit outlook is mostly due to its ever-increasing stock price. In this context, Tesla’s bonds appear to be excessively pricey for its rating, but far cheaper in terms of risk, when compared to rivals.
Is it possible to acquire a single Tesla share?
Tesla stock is currently trading at well over $1,200 per share. You can buy fractional shares in almost any stock for as low as $1. However, there are a few things to consider before investing to ensure that you get the most out of your money.
Is it safe to invest in Tesla?
- Tesla, the electric vehicle (EV) manufacturer, faces a variety of significant dangers in the next 5-10 years.
- Tesla automobiles could be overpriced due to tax incentives, and the development of its Gigafactory (battery factory) could take longer than projected.
- Tesla, in general, faces competition from both traditional automakers and alternative electric vehicle producers.
- Tesla’s future success will be determined in large part by its ability to expand its manufacturing capacity and infrastructure.
- Elon Musk, the CEO of Tesla, is strongly identified with the brand, and his grandiose objectives are matched by his proclivity for drama.
What is Elon Musk’s investment strategy?
PayPal, SpaceX, DeepMind Technologies, Tesla, and The Boring Company are among Musk’s best investments. Elon Musk is a technology entrepreneur, engineer, and industrial designer who is noted for disrupting several industries. Musk is frequently referred to as the world’s richest person.
What is a reasonable Tesla stock price?
The average analyst price estimate for Tesla stock is $913 per share. That’s up from around $662 only three months ago, but it’s still around 10% below where the stock is currently trading. For equities in the S&P 500, average price targets typically suggest gains of approximately 10%.
What is the world’s most expensive stock?
Berkshire Hathaway is the most expensive stock in the world. The lack of a stock split is one of the primary reasons why the company’s stock is so pricey.