One of the most inventive businesses in the world, Tesla consistently wins praise, especially from its supporters and customers who care about the environment. The company produces electric vehicles in addition to providing solar panels and renewable energy solutions.
Due to Tesla’s performance, many investors are interested in purchasing Tesla shares. Fortunately, we have created this guide to assist you in comprehending Tesla shares and determining whether you ought to buy any. The two top stockbrokers from whom you can buy company shares have also been suggested by us.
How to Buy Tesla Shares – An Overview
We will demonstrate how to purchase Tesla stock through the broker of your choice to get things started. Start by following this straightforward advice:
- Open a Trading Account: Users can start the registration procedure by going to the website of their favorite broker.
- Upload ID: Upload a copy of your ID to instantly have your newly formed account confirmed.
- Deposit Funds: By selecting a payment option, such as e-wallets, credit/debit cards, or Wire transfer, users can deposit money.
- Buy Stock: Users can start an open order by searching for Tesla stock in their platform’s search box. Enter your desired investment amount, then confirm the transaction.
Examine Tesla Shares
It’s crucial to examine this business and draw your own conclusions on its value. Let’s examine Tesla’s past in more detail.
Two professionals, Martin Eberhard and Marc Tarpenning, established Tesla in 2003 with the intention of proving that electric cars may be superior than gasoline-powered cars in terms of quality, dependability, and entertainment. In addition to producing electric cars and batteries up to this point, Tesla has also expanded its product line to include sustainable energy generation and storage devices. They include solar-powered roofs and panels that let businesses and homeowners control their use of renewable energy.
The corporation was once known as Tesla Motors, named after Nikola Tesla, one of the architects of the contemporary alternating current electrical supplying technology. Under the direction of Elon Musk, who took over as CEO in 2004, the business later changed its name to Tesla Inc.
The Roadster, which Tesla produced in its first year and offered for sale to the general public from 2008 to 2012, After its first public offering (with only £17 per share), which enabled it to raise £226 million, the company started to rise to its glory in 2010. The firm appeared to be unstoppable in its rise to prominence after the introduction of the Model S. The business also unveiled the Supercharger network in 2012, a network of no-cost Tesla charging stations. Globally, there are currently more than 25,000 Superchargers.
Tesla Share Price History
Elon Musk created Tesla, an electric vehicle manufacturer, in 2003. In 2010, the business went public at a price of $17 per share, raising $226 million.
The stock traded largely flat for several years. But by 2014, it had increased to equal half the market capitalization of Ford, the biggest American automaker at the moment. The stock was notoriously shorted by numerous known hedge funds and investors due to the company’s limited annual production at the time and its luxury price point. In fact, up until earlier this year, a significant amount of trade in Tesla shares consisted of short bets.
The shares had risen to a – at the time – the eye-watering price of about $500 per share by the beginning of 2020. The price of shares then increased dramatically. In 2020, Tesla saw a gain of more than 740%. The firm completed the year at more than $750 a share ($3,750 prior to the split), after taking into account a 5-to-1 stock split in September.
Tesla share price 2022
Tesla currently has a market capitalization of $850 billion at its share price of $270.21. That makes it the fourth-largest firm in the US and bigger than the combined size of the top nine automakers worldwide.
From a fundamental standpoint, Tesla is overvalued. Price-to-earnings (PE) ratio for the company is 97.30. For contrast, the Price earnings ratio for the S&P 500 is roughly 38, whereas Amazon’s Price earnings ratio is 92. Based on earnings, Tesla is almost the only company in the world that is more overpriced.
Of course, Tesla investors care more about projected earnings than present ones. For most businesses, it is unheard of to see earnings growth of 73% from one year to the next, yet Tesla did. Additionally, revenue climbed by almost 40% in 2020.
Since it won’t be for many years, Tesla does not presently offer a dividend. The corporation is still primarily focused on expansion and will probably invest any extra cash in R&D or increased manufacturing capacity.
However you can read our alternative guide to the Best Dividend Stocks You Should Buy in UK 2022 to find the best dividend paying stocks in UK.
Best trading platform to Buy Tesla Shares
Prior to learning how to purchase Tesla shares, you must first select a licensed UK stockbroker. In the US, Tesla stock is traded on the NASDAQ. Therefore, you will want a UK stock broker that facilitates trading in US shares in order to purchase shares of this firm.
The good news is that Tesla is a large enough firm to have its shares available for trading through the majority of UK brokers that cater to overseas markets. As a result, you can select a broker based on additional considerations such as the cost of trading, the sorts of trading tools offered, and the broker’s reputation for reliability.
So let’s look at two well-known UK brokers you can utilize to purchase Tesla shares.
More than 800 shares from marketplaces in the UK, the US, and other countries are available on eToro, a broker and well-known automated trading app in the UK. You have the option to buy Tesla shares outright or trade CFDs with a 0% commission on Tesla. You can use up to a 5:1 leverage ratio while trading CFDs.
A comprehensive range of tools for both long-term investing and short-term stock trading is available on the eToro trading platform. More than 100 technical studies and drawing tools are integrated into the charting interface, which is accessible on PC and mobile devices. The portal also offers a news feed, an economic calendar, price alerts, and price predictions from qualified stock analysts.
You may network with millions of traders to exchange trading ideas, discover fresh tactics, and gather data. Because of the social network, eToro is able to provide a market sentiment indicator for each stock, letting you know whether or not eToro traders are purchasing or selling a company’s stock. Additionally, you can quickly create a strategy or investment portfolio by copying the positions of other traders, making it even simpler to learn how to purchase Tesla stock in the UK.
For trading CFDs on shares, FX, cryptocurrencies, or commodities, eToro doesn’t charge any commissions. There are no monthly fees to worry about, but if you don’t make a transaction for a full year, you’ll have to pay a £4 withdrawal fee and a £15 inactivity fee.
All accounts on eToro are covered by the FSCS, which is overseen by the UK’s FCA. The fact that this broker provides phone and email client care around the clock is another benefit. To learn more about what this brokerage app has to offer, read our in-depth eToro Broker Review UK 2022.
Libertex is a currency broker that also offers trading in equities, commodities, and virtual currencies. The number of equities isn’t very large; Libertex only provides CFDs for about 60 distinct shares, mostly from the US; nonetheless, Tesla shares are offered. Furthermore, you can trade using a 5:1 leverage ratio.
The way Libertex handles trading commissions is one of its distinctive qualities. With no additional spread, Libertex has a minimum commission of 0.1% to 0.2% for each trade. For many traders, this turns out to be more affordable and predictable than spread-based costs, which is a huge positive for this brokerage. The only account costs levied by Libertex are an inactivity fee after 180 days of no trading.
We also appreciate Libertex’s trading platform, which is accessible via the web and a trading app for mobile devices. Numerous built-in technical indicators, sketching tools, a news feed, and an economic calendar are all available to you. However, Libertex lacks a lot of fundamental information and analyst reports, making this broker’s tools more suited for technical trading.
One of Europe’s most respected financial watchdogs, the Cyprus Securities and Exchange Commission (CySEC), oversees Libertex. If you need assistance setting up your account, Libertex offers email service seven days a week. To learn more about what this brokerage app has to offer, read our in-depth Libertex Broker Review UK 2022 – Complete Guide.
How to buy Tesla Shares?
You may purchase Tesla shares from a number of stock brokers, particularly in the UK. The three brokers mentioned above, however, will provide you with top-notch materials to help you get going. Here are the instructions for using eToro to purchase Tesla shares.
Step 1: Visit eToro
You can signup on the eToro platform by using the buttons on this page. Novice may begin by creating a demo account to practise trading stocks before opening a real trading account. Remember that eToro has a dependable mobile app as well. There is a mobile app to assist you to keep track of your activity while you’re on the road, so you may purchase Tesla shares using your computer as well.
Step 2: Sign up
You can register for eToro in just a few minutes thanks to its simple registration process. You will be needed to submit your contact information, which may include your name, birth date, email address, phone number, and location. In order to build your account, the broker will also need extra details about your source of income.
Step 3: Deposit Your Account
In order to access the NASDAQ exchange and purchase Tesla shares, a minimum payment of £50 will be needed. Be aware that the broker accepts payments using a variety of methods, including bank transfers, debit/credit cards, and electronic wallets. So, before committing to eToro, make sure you verify an appropriate payment method.
Step 4: Find Tesla Stock
One of the largest tech businesses in the world is Tesla, and eToro enables you to trade shares in several ways. As a result, you can trade Tesla shares as indices and CFDs in addition to purchasing them as real assets.
Step 5: Choose Your Investment
You will decide how many Tesla shares you want to purchase based on your budget. Make sure you are aware of all the hazards before investing any money if you wish to trade shares as indices or CFDs.
The largest manufacturer of electric vehicles in the world, Tesla, has room for expansion. Investors are interested in updates on the company’s performance since it is consistently a few steps ahead of the competition in terms of innovation. You might want to think about investing in Tesla shares because its most recent financial report shows that its revenue is rising.
Be aware that Tesla stocks are erratic, so it’s important to monitor the company’s share price development to determine when it’s best to buy. Regardless of whether you’re making a long-term or short-term investment, make sure you trade with the correct stock broker. Choose a broker that will work best for you from the list of those we’ve recommended above.
Frequently Asked Questions
What is the ticker symbol for Tesla’s stock?
The ticker symbol for Tesla on the NASDAQ stock exchange is “TSLA.”
Can I purchase Tesla stock in smaller amounts?
Yes, if you work with certain brokers, you can buy Tesla shares for as little as $50.
How much do shares of Tesla cost to buy?
The present price of Tesla stock is over £1000, which can be expensive for most investors. However, you may buy Tesla shares for as little as £10 because the corporation permits investors to buy the shares in fractions. You can choose the investment amount yourself while trading Tesla using CFDs.
Can I purchase one share only?
Yes. One share of Tesla can be purchased. To finalize your purchase, you will require the best stock broker with access to the NASDAQ exchange.
Is it a dividend paying company?
Sadly, Tesla does not distribute dividends to its shareholders. Dividends have been discussed, but we don’t anticipate them to be implemented anytime soon. So, if you purchase Tesla stock, your only way to profit is by selling them for more money than you paid for them.