Tesla (also known as Tesla Motors) is more relevant than ever before. Now that the polar caps are melting, the appeal for electric vehicles is growing at a spectacular rate. Would you like to invest in the future? Then, buying Tesla shares may be something for you. However, don’t do this without carrying out extensive research. Search for the answer on the following question: is investing in Tesla as great as it sounds?
How can I actively trade in Tesla shares?
Tesla is an interesting company for the active trader. The share price is very volatile. The future of the company is quite uncertain and investors are hoping for rapid growth. CEO Elon Musk’s strongly articulated tweets also caused quite some increases and decreases in value of their stocks. But, how can you actively trade in Tesla stocks?
A great party to actively trade in Tesla CFD shares is Plus500. At Plus500, you can place orders on both rising and falling share prices. Because of this, you can achieve good results under any market condition. Would you like to try this out for free and without any risks? Use the button below to open a free demo account (80.5% of the retail investors lose money with CFDs):
Where can I buy Tesla shares?
Do you also think that Tesla has the key to the future in hands due to all their innovative solutions? If this is the case, buying Tesla shares may be just for you! However, it is highly recommended that you do this with a cheap broker. When you don’t keep your costs as low as possible, you are basically throwing a portion of your yield away.
A great party to purchase your Tesla shares at is eToro. You can buy and sell your Tesla shares without any transaction costs at eToro. Use the following button to open an account immediately:
Tesla stock price
Are you curious about the current share price of Tesla? The price of Tesla shares fluctuates quite a bit. This is very interesting for active traders. Below, you can review the current CFD rate of Tesla. You can also place an order whenever you’d like.
Tesla shares analysis
- Tesla: what does the company do?
- Buying shares: how can I buy Tesla shares?
- Risks of Tesla shares: what are the risks of investing in Tesla?
- Elon Musk: what is the role of CEO Elon Musk within the company?
- Valuation of Tesla: what is the value of the company?
- Price movements: what is the history of price movements of Tesla shares?
- Strategy: what is the corporate strategy?
- Products: what products does Tesla Motors sell?
- Results: what are the results of the company?
- History: what is the history of Tesla?
- Future: how does the future of Tesla look like?
Tesla is quite a new car brand. Tesla hasn’t been around as long as the established brands. They do everything different and only produce electric vehicles. A couple of years ago, people had their doubts about a manufacturer that only produces electric vehicles. Nowadays, it is quite clear that a new car should be an electric car.
Tesla firmly believes that fossil fuels are harmful for the world. They cause a lot of carbon dioxide emissions. Besides that, fossil fuels are finite. One day, it won’t be possible to ride in a petrol-fuelled vehicles anymore.
Before you invest in Tesla, it is wise to keep in mind that the shares are rising and falling like a roller coaster. The share price is very volatile. The stock moves strongly when the CEO of the company, Elon Musk, makes some new notable statements.
Step 1: research the share
At the moment, Tesla is the most popular car share. We have noticed that many people buy shares in Tesla, because they simply like the company. This is not a good investment strategy. It is important to only purchase shares if you have carried out extensive research and when you are certain that the company has growth potential.
If you’d like to know if it is worth buying shares in Tesla, you should have a look at the financial figures. This type of research is also known as fundamental analysis. It is recommended that you have a look at the capital position of the company. You could also research the vision for the future of Tesla: do you think that the company will be able to keep up with all developments in the future? Only if you know for sure that the share will fit in your portfolio, you should buy the stock.
Step 2: choosing a good broker
You can buy your shares at an online broker. It is important that you choose a broker that charges low fees. If you choose a broker with high rates, you will lose a large portion of your yields in an instant.
Would you like to know which brokers you could use for a beneficial investment in Tesla? If you click the following button, you can immediately compare several brokers to each other:
Step 3: time your investment
If you have chosen to buy shares in Tesla, you still need to decide when you’re going to do this. Some investors decide to buy their shares as soon as possible. This is also known as a market order. This is a great strategy for investors that want to keep their shares for an extended period of time and have faith in the future of the company.
Are you an active trader? If you are, it is wise to use a limit order. By using a limit order, you only buy the share when it reaches a specific price. By using this type of order, you can study the price movement of the share and join in on the fun at a moment that’s right for you.
You can also decide to buy shares periodically. If you decide to do this, you will need to choose what monthly sum you’d like to invest in Tesla. This is a great strategy if you want to prevent joining in when shares have the highest value. However, you need to have quite a lot of money to be able to follow this strategy.
In our article about buying shares, you can learn more about the process of buying stocks.
Step 4: decide how many shares you’re buying
It is important to decide how many Tesla shares you want to buy. When you invest, it is wise to spread out your capital over a couple of investment products. You should prevent investing all your capital in Tesla. Determine what percentage of your money you would like to risk on Tesla shares in order to determine the size of the position you take.
After your first investment in Tesla, you still have some work to do. You have to keep analysing your investments to be able to determine your best exit moment. It is wise to think about your exit moment before purchasing your Tesla shares.
Investing in Tesla isn’t without any risks. When the company keeps growing, a shortage of batteries may occur. At the moment, the production is limited to fulfilling the future projected needs. Tesla needs massive investments to be able to keep on delivering cars.
Low petrol prices are a big risk for Tesla. Tesla’s biggest competitors are the normal petrol-fuelled vehicles of ‘traditional car brands’. When it is relatively cheaper to have a petrol-fuelled car, it is less likely that people are going to buy a Tesla car.
Tesla may experience a downfall in share value due to the increased competition. Nowadays, electric vehicles are trending. That’s exactly why Chevrolet developed the Bolt and Nissan developed the Leaf. Big tech companies like Apple and Google will be able to reduce the market share of Tesla in the future.
Another risk would be the high capital costs. The company spends a lot of money on building factories and production processes. By contrast, this yields low incomes. Many investors may wonder if the costs will be recouped.
Another big risk for Tesla shares is the dependency on Elon Musk. Elon Musk is a celebrity and some people see him as an inspiration. However, he works on many companies at the same time, so when he loses interest in Tesla in the future, this will impact the share prices negatively. If you are considering investing in Tesla, you should keep an eye on all these risks.
Electric vehicles are the future. But, this isn’t the only reason that the shares are often in the news. Tesla attracts a lot of media attention due to its eccentric CEO, Elon Musk. The share prices depend heavily on the statements and actions of their CEO.
Actions that show the technical capacities of the CEO, would affect the share prices positively. Think about successful launches carried out by his space company SpaceX.
Other statements and actions of Elon Musk influence the stock price negatively. For example, he called a man who criticized him a paedophile. Besides that, he is being sued for not carrying out the $420 million acquisition, although he did announce that this would take place. He and the company both had to pay a fine of 20 million dollars.
Nevertheless, the CEO believes that this didn’t impact the company negatively. At the end of the day, bad PR will still be PR, and Musk still manages to get Tesla in the spotlight. The statements made by the CEO can be used to speculate on the Tesla shares. His actions have a big influence on share prices.
Do you trust the CEO of Tesla? Then, it may be interesting to purchase some shares in Tesla.
It is highly recommended that you study all figures, before buying Tesla shares. Tesla seems a bit expensive at first. The share prices are relatively high at the moment (in 2020) compared to other car manufacturers. Ford has a significantly larger yield, but the market value is almost the same as that of Tesla.
Tesla shares are valued so highly because of the trust investors have in the future prospects of the company. Obviously, the company is a lot more revolutionary than your average car manufacturer. In a world where sustainability is getting more important by the day, Tesla will keep on growing.
Nevertheless, the company still needs a lot of money. The company hasn’t been able to be very lucrative. In the long term, Tesla will need to improve their business performances. Do you think Tesla will be able to do this? Then, you should consider investing in Tesla.
Tesla shares are fairly volatile. This is because the shares are mainly evaluated based on the potential of Tesla. However, potential is difficult to measure. The share prices of Tesla are formed by the opinions of millions of investors. That’s why the price of a Tesla share can change rapidly when good or bad news is published.
You can respond to price movements perfectly by actively trading the stock price. Below, you can look into the history of price movements of Tesla.
Strategy of Tesla
It is always wise to invest in companies that have a clear vision for the future. It is important to study the business strategy, before you purchase their shares.
Tesla has built a big factory in China quite recently. They hope that this will increase their production capabilities.
Tesla has quite an expensive image. Their cars are mainly available for the environmental conscious elites. It seems like Tesla wants to change this image. They are developing an affordable version of their car at the moment. Tesla cars are still not the cheapest cars on the market, but they are becoming more affordable by the day.
If Tesla succeeds in getting its price down, they will be able to put themselves on a whole new market. This would be favourable for the future growth of the company.
But, it is vital to remember that car manufacturers are highly dependent on the economy. Tesla shares are cyclical. When the economy is bad, people will be less likely to buy a new car. So, when the economy isn’t doing well, you could consider buy Tesla shares.
Innovation is very important in a company like Tesla. We will tell you about what the company is doing at the moment below.
The Roadster was developed in 2008. Quite soon after this, they designed the Model S of Tesla. It is efficient, safe and ready for this century. This specific car has turned everybody’s world upside down already. A couple of times, a wireless update will be carried out and the car keeps on getting better and better. It is a unique car and is also quite affordable. Besides their electric cars, they are also working on bringing electric trucks to the market. They should be able to save a lot on petrol costs.
Do you also think that electric cars have a bright future ahead of them? Do you think Tesla will be able to play along with the market? If that is the case, it may be very appealing to buy Tesla shares.
Renewable energy products
Besides cars and trucks, Tesla works on renewable energy products. For instance, the Powerwall, the Powerpack and the Solar Roof. These products are all solutions to develop a full ecosystem for renewable energy. These products are ideal for homeowners, companies and utilities. It focuses on using a sustainable way of generating, storing and using renewable energy.
A surprising presentation
Tesla has presented their second SUV-model. For many people, it simply looks like a bloated Model 3. The part of the presentation about their strong windows, wasn’t as perfect as they probably hoped, but they gained a lot of media attention. The amount of orders have skyrocketed since then.
A lot of people have made jokes and memes about the car, the new model and the fail of the presentation. Nevertheless, many people have ordered the car. A presentation in the style of Apple has given the company the opportunity to score. In the summer of 2020, the new model will go into production.
The company has sold more electric cars in 2019 than expected. The shares have risen to a record high when they announced that they’ve sold 112.000 cars, instead of the projected 105.000 cars.
Below, you will see the results of the company Tesla throughout the years. The yield and profit of a company like Tesla fluctuate quite a bit. When the profit is higher than expected, the share prices increase. This is because the share prices are based on the law of supply and demand. When people are pleasantly surprised, they tend to purchase new shares.
The history of Tesla goes back to the year 2003, when Martin Eberhand and Marx Tarpenning started the company. These entrepreneurs wanted to bring an electric sports car to the market. During this time, the company was still run by one of the co-founders of PayPal.
A little later, the Tesla Motors sparked the interest of Elon Musk. He invested in the company and managed to create some kind of budget for new research. Eventually, Tesla Motors evolved into the company we all know and love.
It is clear that mister Musk has a clear vision of the future of his company. Although he gets quite a bit of negative press due to his Twitter behaviour, he is lifting his company to new heights. The market value of the company has risen to more than 100 billion dollars and the end is not in sight. How high will the Tesla share go?