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How To Buy Tesla Stock (All You Need To Know)

Looking to find out How To Buy Tesla Stock?

How to buy Tesla stock directly?

What are the essential elements you should know!

Keep reading as I have gathered exactly the information that you need!

Let me explain to you how to buy Tesla stocks step by step!

Are you ready?

Let’s get started!

How To Buy Tesla Stock 

How do you buy shares of stock in Tesla?

I will provide you with a step-by-step explanation of how you can buy shares in Tesla allowing you to invest in electric cars.

Before we get started, here is a little background information on the Tesla stock:

  • Tesla was founded in 2003
  • Its official name is Tesla, Inc.
  • It’s based in Palo Alto, California
  • Its IPO was in 2010
  • The IPO stock price was $17 per share
  • In August 2021, it had a 5 for 1 stock split 
  • The company builds electric-powered vehicles 
  • The company also operates energy storage products, solar systems, and works on renewable energy 
  • In 2020, Tesla sold just under 500,000 vehicles 

Now, I will show you how to buy Tesla stocks online.

Step 1: Review Tesla Stock Performance

The first thing you should do before purchasing Tesla stock is to review the stock performance to ensure it meets your investment requirements.

This is a key step before making any investment decision.

When a lot of people talk about a particular stock, you want to make sure that you remain grounded and invest based on your investment values as opposed to investing based on emotions or by making rash decisions.

You can assess whether you should buy stock in Tesla by looking at things like:

  • Tesla’s annual reports (Form 10-K)
  • Tesla’s quarterly reports (Form 10-Q)
  • Information provided by the Tesla investor relations website 
  • Information in the SEC database
  • Information found on Tesla on finance websites
  • Reviews performed by brokerage firms and financial analysts 
  • Tesla stock news 

If you take the time to look at all the available data on the Tesla stock, you will then be in a much better position to decide if investing in Tesla will make sense in your particular situation.

You should also consider various Tesla financial ratios such as:

  • Tesla price per share
  • Tesla year to date change in stock price 
  • Tesla Price-to-earnings ratio (P/E ratio)
  • Tesla EPS
  • Tesla PEG ratio
  • Tesla EBITDA
  • Tesla risk score 
  • Tesla dividend yield (if any)

There are many more financial ratios and financial metrics that you can find or calculate. 

This will really depend on your personal appetite and interest to consider detailed stock information to make a purchase decision.

Step 2: Open Brokerage Account

The next step on how to purchase Tesla stock is to open a brokerage account so you can eventually place your purchase order.

A brokerage account is a type of account that you’ll need to open allowing you to buy and sell stocks, mutual funds, ETFs, or other securities traded in different securities markets.

Typically, most online brokerage firms offer their clients a wealth of information and content to help you further research the stock you want to purchase and get more data to make an informed decision.

If you are looking to buy Tesla stock for any purpose and to hold the stock for any time period, you’ll need a standard taxable brokerage account.

On the other hand, if you are looking to invest in Tesla in an account giving you special tax advantages, you may want to see if you should open an individual retirement account (IRA) or others.

Different brokerage firms will provide you with different products and services, so you’ll want to look around to find the best online brokers that will suit your needs.

Pay careful consideration to:

  • How much it will cost you to purchase shares (commission-free trading or trading fees)
  • How much fees you may need to pay on an annual basis (account fees)
  • How much financial data is made available to you, so you can choose the best brokerage account to buy your Tesla stock
  • Whether you can buy fractional shares (fractional share trading)
  • If you have commission-free trading
  • If you have real-time market data
  • If you can do margin trading

You can also ask the brokerage firm to offer you a demo of their trading account or give you limited access so you can try things out.

Step 3: Set Your Investment Budget

Once you’ve done your research on the Tesla stock and have opened your brokerage account, the next step is to decide how much money you will want to invest in the stock.

Are you looking to make a small investment or a large one?

Depending on your investment strategy and your investment budget, you should come up with an amount of money that makes sense for you to invest.

For example, if you earn $3,000 per month and can save $200 at the end of the month, you may decide to keep $100 for an emergency fund and use $100 to invest in the Tesla stock.

If you only have $100 to invest in Tesla stock per month, you’ll then need to look at the stock price to see how many shares you can buy.

Step 4: Find The Number of Shares To Buy

The fourth step in how to invest in Tesla stock is to consider the value of the Tesla shares per unit so you can see how many shares you should buy.

For example, if you have a budget of $100 per month to invest in Tesla stock but the stock price per share is above $100, you will not have enough to buy one share.

You’ll have two options at this stage.

Option 1 is for you to accumulate your Tesla investment budget month-over-month so you have enough to buy one share and then you’ll invest in the stock.

The other option is that you can verify with your brokerage firm if you can purchase fractional shares in Tesla.

There are some brokers that offer you the possibility of purchasing fractional shares.

This means that if you have $100 to invest in a stock that is priced at $500 per share, you can actually purchase 0.2 shares of the stock by investing $100.

See if you have this option available to you when opening your brokerage account.

Step 5: Place An Order

Now, you are ready to place a purchase or buy order for your Tesla shares.

Every stock has a ticker symbol. 

Tesla’s common stock ticker symbol is TSLA for its shares trading on the Nasdaq Exchange that is open from Monday to Friday from 9:30 a.m. to 4 p.m. Eastern Time.

To place an order, you’ll typically need to transfer your investment funds from your bank account to your brokerage account.

Generally, you can link your bank account to your brokerage account allowing you to move money from your bank to your brokerage account.

Once you’ve transferred the necessary funds, now you are ready to buy your Tesla shares.

What you need to do is to:

  • Log into your online brokerage account
  • Enter the TSLA ticker symbol to show you want to buy Tesla shares
  • Indicate the number of shares you are looking to buy
  • Specify your trade instructions by putting purchase price limit orders, market orders, or stop orders
  • Place your trade

Step 6: Evaluate Your Stock Returns

Just like any investment, after you’ve invested in the Tesla stocks, you should review the performance of your investment from time to time.

Some investors will not have a lot of time to devote to tracking their investment returns and progress whereas others may put more time.

It’s important that you monitor your stock performance at least on a yearly basis to ensure that the TSLA stock still fits your investment strategy.

One way investors assess the performance of their investment is to compare it to industry benchmarks like S&P 500 or the Nasdaq Composite Index.

If your Tesla shares perform better than your benchmark, then you’re on the right track.

However, if your Tesla common shares perform below your benchmark, you’ll need to assess factors like the overall economic conditions, Tesla’s latest financial results, latest news and information relating to Tesla, and more.

If you are confident that the stock will perform at levels you expect in the future, you may want to keep the stock.

Otherwise, you should consider at some point in time selling your stock to either realize your profit or cut your losses.

How To Invest In Tesla Takeaways 

So, there you have it folks!

Are you asking yourself the following question: How to buy stock in Tesla?

Well, the good news is that it’s not very difficult.

Here are the steps how to buy stocks in Telsa:

  • Research the Tesla stock
  • Open your brokerage account (be sure to compare different stock trading platforms)
  • Decide how much you will invest in Tesla shares 
  • Based on your investment budget, calculate how many Tesla common shares you need to buy (if you can’t buy one whole share of stock, consider brokerage accounts allowing you to buy parts of a share or fractional shares)
  • Place your purchase order (make sure you’ve transferred the necessary funds in your brokerage account)
  • Evaluate your Tesla share performance over time 

Now, you should have a clear idea of how to invest in Tesla shares from the start of the process to the end of the process.

Good luck in your journey to develop your wealth!

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With that being said, let’s head right back to our main topic!

How To Invest In Tesla Stock Summary

  • The first step on how to buy a Tesla stock is to do your stock research, analyze the market conditions, and look at Tesla’s financial reports, and earnings 
  • The next step how to trade Tesla stock is to open a brokerage account matching your trading needs (for most people, a simple trading account should be just fine)
  • Then you’ll need to decide how much money you want to invest in Tesla motors and with that information you’ll be able to calculate how many shares you need to purchase
  • The last step how to invest in Tesla motors is to place your TSLA stock trade and then monitor your stock’s performance  
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