Tesla (TSLA) is one of the most popular and innovative companies in the world, producing electric vehicles, solar panels, batteries and more. Many investors are interested in buying shares of Tesla stock, hoping to benefit from its growth and vision. But how can you buy Tesla stock and what are the things you need to consider before investing?
In this article, we will explain the steps to buy Tesla stock, as well as some tips and risks to keep in mind.
How to Buy Tesla Stock
To buy Tesla stock, you need to have an account with a brokerage or an online investment platform that allows you to trade stocks. A brokerage is a company that acts as an intermediary between you and the stock market, facilitating your transactions and providing you with research and tools. An online investment platform is a website or an app that lets you buy and sell stocks directly from your device, usually with low or no fees.
There are many brokerages and online investment platforms to choose from, depending on your preferences, goals and budget. Some of the factors you may want to compare are:
The fees and commissions they charge for trading stocks
The minimum amount of money you need to open an account
The types of accounts they offer, such as taxable brokerage accounts or tax-advantaged retirement accounts
The range of investments they offer, such as stocks, mutual funds, exchange-traded funds (ETFs), bonds, options and more
The quality of their customer service, research, education and tools
The ease of use and functionality of their website or app
Some examples of brokerages and online investment platforms that let you buy Tesla stock are Fidelity, eToro, Interactive Brokers, Merrill Edge and NerdWallet . You can also check out our picks for the best online brokers.
Once you have chosen a brokerage or an online investment platform, you need to open an account with them and fund it with money. You can do this by linking your bank account or transferring money from another source. Depending on the provider, this may take a few days to complete.
After your account is funded, you can start buying Tesla stock. To do this, you need to know the ticker symbol of Tesla, which is TSLA. You can enter this symbol in the search bar of your provider’s website or app and see the current price and other information about the stock. You can then place an order to buy a certain number of shares or a certain amount of money worth of shares. You can also specify the type of order you want to place, such as a market order (which executes at the current price) or a limit order (which executes only at a certain price or better).
Once your order is filled, you will own Tesla stock in your account. You can monitor its performance, sell it when you want to or buy more shares if you wish.
Tips for Buying Tesla Stock
Before buying Tesla stock, it’s important to do some research on the company and its prospects. You should also have a clear idea of why you want to invest in Tesla and what your expectations are. Here are some tips to help you with your decision:
Learn about Tesla’s business model, products, competitors, strengths and weaknesses. You can find this information on Tesla’s website, annual reports, earnings calls and news articles.
Analyze Tesla’s financial performance, growth potential, profitability and valuation. You can find this information on financial websites such as Yahoo Finance or Morningstar.
Consider the risks and challenges that Tesla faces, such as regulatory hurdles, production delays, quality issues, competition from other automakers and environmental concerns.
Diversify your portfolio with other investments besides Tesla stock. This will reduce your exposure to the volatility and uncertainty of a single company.
Invest only what you can afford to lose. Tesla stock is very risky and unpredictable, so you should not invest money that you need for essential expenses or short-term goals.
Be prepared for price swings. Tesla stock is known for its dramatic ups and downs, which can be influenced by various factors such as news events, market sentiment, Elon Musk’s tweets and more.