buy tesla shares with our expert advice

How to buy Tesla shares?

Tesla Motors spearheads the economic ambition of visionary Elon Musk. 

He had already marked the spirits in 2002 when he sold his concept of dematerialised payment Paypal to eBay for the astronomical sum of 1.5 billion dollars. 

While we see the ubiquity of the e-wallet in e-commerce regulations, it makes sense to measure the potential to buy Tesla shares

We provide an overview of Tesla shares (TSLA): price history, outlook and investment method 

67% of retail investor accounts lose money when trading CFDs with this provider. You have to ask yourself if you can afford to take the high risk of losing your money.

Tesla Motors, then Tesla Inc, following the change of legal entity in 2017, is an automobile manufacturer which was created on July 1, 2003 under the leadership of Martin Eberhard and Marc Tarpenning. Elon Musk, its current CEO, does not come into the picture until later. It is thanks to him that the transformation towards the manufacture of 100% electric motor vehicles becomes a reality. Other mergers and acquisitions - including SolarCity in 2016 - have enabled Tesla Inc to diversify its activities, particularly in the field of renewable energies.

To better estimate the competitiveness of Tesla shares, which have been listed on the stock market for barely more than 10 years, we take their history step by step.

The Tesla Motors IPO took place on June 29, 2010. The TSLA share price was set at 17 dollars (14.40 euros). The enthusiasm was set from the first session. However, the Tesla share price stagnated for several years. Indeed, at the forefront of a new approach to automotive design and limited to a very wealthy clientele, the Tesla company is still struggling to attract investors because of too limited outlets.

A first improvement in 2013 thanks to the release of the new Model S which is the company's entry ticket into the club of car manufacturers recognised by its peers. The share price climbs to 38.27 dollars (32.43 euros).

This upward trend persists for many years, despite some strong downward phases such as at the end of 2013 with a drastic drop to 27 USD to better go back to 49 dollars (41.52 euros) during the first quarter of 2014.

These oscillations in the Tesla share price followed each other for years over the brand's announcements and industrial developments. The real and lasting upward phase begins at the end of 2019 following the release of the new Model S, which is the best-selling electric sedan in the world, which places Tesla Inc as the undisputed leader of the segment. Investors are all excited by the results, Elon Musk's strategic choices and the outlook for the future.

The new all-time high is reached on 02/16/2020 with a NASDAQ unit price at the close of 180 dollars (152.51 euros). Unfortunately, Tesla's stock price divided by 2 the following month, to $85.56, because of the first restrictions linked to the COVID-19 pandemic. This vertiginous fall is the dawn of a historic rebound since from 03/29/2020, a major uptrend takes place. All the vertices are beaten one after the other:

  • $308.93 July 15, 2020

  • $442.68 on Aug 23, 2020

  • $695 on December 13, 2020

  • Unbeaten record until then of $880 (€745) on January 03, 2021
     

Since then, despite significant volatility, Tesla's share price seems to stabilise around $700 (or €593). It is difficult at this stage to measure the lasting impact of the health crisis on the economic and industrial strategy of the Tesla group. Despite everything, this history gives us some early indications whether buying Tesla shares is an opportunity to be seriously considered.

How to invest in a Tesla share?

In this section, we present step by step how to buy Apple shares in an efficient and secure way: choice of broker, procedure of opening an account, deposit of money and action of acquiring an AAPL stock.

Now that we have a first idea about TSLA shares, it seems appropriate to deliver a tutorial to buy Tesla shares as efficiently as possible by reducing the risks of scams by offering the assurance of irreproachable security and the most competitive prices on the market. We have chosen 3 brokers very popular with investors:

Step 1: Choose a stock broker

trading platform fees comparison etoro

Although this may seem obvious to some, it is important to remember that it is essential for a particular investor to go through an online broker to gain access to the various financial markets available. This is why it is so essential to choose the best possible broker in line with its investment strategy, its financial objectives, its real needs and its technical skills. 

Here are some useful tips for choosing the right stock broker. The 3 brokers put forward combine all (or most of) the criteria presented just after:

  • Choose a platform with a wide range of services and a reliable technical infrastructure

  • Give priority to multi-media brokers to invest in Tesla everywhere and all the time: web platform, mobile application, software to install

  • Do not ignore regulation and security. Choose brokers certified CySEC, AMF, FCA

  • Accurately assess trading costs. Seek price competitiveness without losing the quality of the service offering

  • Check the compatibility of his trader profile with the broker's trading offers: analysis tools, entry fees, etc.

  • Ensure the professionalism of customer service

 

The broker eToro has been the market leader in CFD and forex trading platforms for several years. It collects a large majority of positive opinions from investors for various justified reasons:

  • A social trading platform that allows direct exchanges between traders and effortlessly copy the positions of experienced investors

  • Very low brokerage fees, especially on forex

  • A Zero Commission policy on a wide selection of equities and ETFs

  • eToro Academy to train even as a beginner

  • A wide range of assets: forex currency pairs, stocks (spot or CFDs), commodities, stock indices, crypto currencies (Bitcoin)
     

We have gathered the main advantages and disadvantages of using the eToro broker to invest in Tesla:

ADVANTAGES

✅     Social trading with copy platforms

​✅     Purchase of shares in cash or CFDs

✅     Zero fees on selected stocks

✅     Wide choice of assets including Tesla and Bitcoin

DISADVANTAGES

❌     No PEA

❌     Fees on withdrawal

❌     Dollar account (with conversion fee)

67% of retail investor accounts lose money when trading CFDs with this provider. You have to ask yourself if you can afford to take the high risk of losing your money.

Step 2: Open a trading account

Before you can buy shares in the company Tesla Motors, which specialises in the manufacture of electric vehicles, it is necessary to open a trading account with the broker of your choice. Although some registration procedures differ from broker to broker, here is our general tutorial:

  1. Click on Open an account

  2. Fill in the required information: name, first name, email address, telephone, country of domicile

  3. Complete the KYC (Know Your Customer) questionnaire to assess your level of trading skills and knowledge of the stock market (legal obligation on the part of regulated brokers)

  4. Check your identity by sending the required documents online: identity document (CNI or passport) and proof of address (water bill, electricity less than 3 months old or last tax notice)

Step 3: Deposit funds

When the account is validated by customer support, you have to deposit money in your trader account to be able to buy Tesla shares on the stock market. Once again, the process is simple and structured.

All you have to do is go to the financial section of your customer area (Deposit section), define the amount to be transferred and the preferred payment method. From one broker to another, the minimum deposits and methods available vary:
 

  • eToro: 200 dollars minimum (or equivalent currencies euros and pounds sterling after conversion) with:

    • Visa or Mastercard credit card

    • Bank transfer

    • Paypal

    • Skrill and Neteller type electronic wallets

    • Other payment solutions

  • Admirals: no minimum amount by:

    • Credit card

    • Bank transfer

    • Electronic wallet

    • Alternative payment solutions

  • Libertex: 10 euros minimum with:

    • Credit card

    • Bank transfer
       

The amount of money transferred is immediately available for all paperless methods. Only the bank transfer may require a processing time of 1 to 3 days.

Step 4: Buy Tesla shares

Once the capital is available, it is then possible to buy a Tesla share on the stock market or any other asset of interest such as CFDs on indices, commodities, forex or crypto currencies (Bitcoin). Here we present the guide via eToro which is, in our opinion, the most effective:

  1. Click on the Markets section

  2. Select Tesla Bourse share:

    1. Either by typing the name of the asset in the search bar provided for this purpose: Tesla or TSLA

    2. Either by doing a manual search in the tab dedicated to the shares of a listed company

  3. Confirm your choice by double clicking on the product

  4. In the new window, fill in the required information:

    1. Investment amount

    2. Desired leverage

      1. If X1, the share is purchased for cash and directly added to the eToro Ordinary Title Account, only the Buy option is available

      2. If X2 or more (up to X5), this is an investment via CFDs where the trader can speculate on the upside as well as on the downside

    3. Levels of Take Profit (automatic collection of gains at a certain price) and Stop Loss (closing a position at a certain price to limit losses)

  5. Confirm order

Why choose Tesla stock?

What are, in our opinion, the legitimate and verifiable reasons which could justify the purchase of shares in the company Tesla Motors?

Let us first mention the meteoric growth of the stock since the bearish episode of March 2020. To date, the share price has grown by + 723% in 18 months, which is very impressive. This is in line with a logic already observed among other giants at the cutting edge of technology such as AppleGoogle or Facebook.

Analysts share a generally positive opinion as Tesla has built a solid reputation in the field of sustainable energy following several mergers and acquisitions spearheaded by Elon Musk. This sector of activity is a pillar of the growth of the manufacturer of electric cars. Indeed, these technologies allow it to be far ahead of market competitors such as Toyota or Honda.

By extension, the Tesla forecast action is very favourable since the applications linked to these innovations go well beyond electric vehicles: alternative solutions to the production and storage of electricity for individuals and professionals.

Another strong point of the company and which makes a lasting contribution to Tesla's share price, which is constantly rising: the unbounded loyalty of the brand's customers. In the automotive sector, this is a phenomenon that has never been seen at such a level of commitment. This loyalty has been built around the pride of owning a brand property, the affordable luxury of exceptional electric cars and technical services and customers truly involved in the success of the company.

To deliver more quantified data of the results of the automotive group, in the last quarter of the year 2020 (closing of accounts on December 30), the company presents a turnover of 31.53 billion dollars, with a growth of the profits of 998%. The share price jumped 42.86% over 12 months. Apart from the first quarter of 2020, the whole year has been more than profitable.

GME company information 

tesla trading info

Tesla share dividends

Like many Tech companies, even if the Tesla group is above all a manufacturer of electric motor vehicles, Tesla Inc has chosen not to pay dividends to its shareholders in order to support its economic and commercial development.

This strategy has already been widely proven and allows internal financing, without making external credit, thanks to the support of investors 'money.

The diversification of the group's activities in growth sectors enables it to constantly consolidate its turnover and its results. The sale of Tesla cars is now able to generate profits with a profitability never reached since its arrival in the segment. The durability of lithium batteries, the excellent quality / luxury / price ratio and the unparalleled autonomy without recharging contribute to an ever increasing valuation per share and associated dividend for sustainable growth, profitable in the long term for shareholders.

67% of retail investor accounts lose money when trading CFDs with this provider. You have to ask yourself if you can afford to take the high risk of losing your money.

CONCLUSION: SHOULD YOU BUY A TESLA SHARE?

It's time to ask this question that has tormented us since the beginning of the TSLA buying guide. Should we embark on the purchase of Tesla shares? Is it too late to do this?

A large number of factual elements lean our opinion towards a validation of such a strategy. The increase in the unit price of a Tesla share is truly impressive. Going from $17 in 2010 to over $700 in 2021 is one of the most phenomenal and rapid growths on the US stock market.

The diversification of the automotive group's activities and the enlightened vision of leader Elon Musk consolidate this general impression of success. The ability to be financially independent just with the sale of its latest generation vehicles (thank you China) is an excellent indicator.

The brand enjoys an excellent image and an irreproachable reputation among its customers, who seek exception, luxury and innovation.

We must not forget that this is a company which is still very young, full of energy and ambition. Its strength has been proven during the first phase of the coronavirus pandemic. Despite a momentary drop, the price of the stock has recovered and the financial results have been more than excellent. Despite its undisputed leadership position in the electric car segment, Tesla is not resting on its achievements. Quite the contrary. Innovation at the best price seems to be a powerful driver for the company.

The development potential seems limitless with the many products linked to the production and storage of renewable energy (PowerWall). 

Buying Tesla shares therefore seems to be an excellent strategy in the short term, thanks to the volatility of its price, and in the long term for the bright development that seems to be emerging. The most important thing is to choose upstream a broker adapted to your needs. eToro is, in our opinion, a reliable and profitable all-rounder option.

Tesla Inc's worst enemy could be its CEO, who has been on the pranks before and has been sanctioned for doing so by the SEC. His vision and his way of communicating leave some analysts quite dubious, despite all his past successes.