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Tesla stock is more accessible to investors and traders than you might think. The process can be as simple as signing up for a mobile app. We’ll discuss what makes Tesla a good buy, different ways you can purchase the stock, how to track your shares, and more.
Below, a step-by-step guide to getting started.
Is Tesla a good stock to buy?
As one of the leading innovators in the auto industry, Tesla has generated a lot of press in recent years.
It has developed a loyal cult-like following of fans and enthusiasts who believe in the company’s technology and often laud CEO Elon Musk as a visionary, showering him with devotion and admiration.
At the same time, the company has many vociferous critics who argue the electric vehicle pioneer could go bankrupt in the years ahead due to its soaring debt and high cash burn.
Before you load up on Tesla shares, there are a few things to consider. Analyzing a company’s financial statements is probably the single hardest part of researching the stock, but it’s also the most important.
Tesla’s balance sheet, quarterly income statement and sales outlook will provide you with a clear breakdown of the company’s business.
If you like what you see, then you are one step closer to buying Tesla stock.
How much is a share of Tesla?
During January 2020, Tesla shares hit a big milestone, becoming the first $100 billion publicly listed U.S. carmaker in history.
After topping the combined market capitalization of Ford (NYSE:F) and General Motors (NYSE:GM), Tesla overtook Volkswagen (OTC:VWAPY) as the second most-valuable carmaker in the world.
However, with a market capitalization of around $199 billion, Toyota Motor Corporation (NYSE:TM) of Japan continues to dominate.
Stock Quote for Tesla
As of yesterday’s close, Tesla was valued at $140 billion, based on its current share price of $771.
Stock in Tesla has more than quadrupled since hitting a 52-week low of $176.99 in June 2019.
Recently, shares have risen 335% since June, driven by positive news regarding the company’s China factory ramping up production, better-than-expected annual car deliveries, and anticipation for the company’s new “Cybertruck.”
Where do I go to invest in Tesla?
You will need a brokerage account in order to purchase Tesla stock. Despite appearances, opening an account is a simple process that can be completed in a flash. You should look for a brokerage that has low or no trading commissions, provides you with the resources you need, and has a low account minimum that you can meet.
For the first time investor, the emergence of free stock trading apps like RobinHood and Acorns has greatly simplified the process of buying and selling shares. Some of the best places to begin are commission-free online brokers like TD Ameritrade, Charles Schwab, Interactive Brokers, and E*Trade.
Is it worth it in 2022 to 2050 buying Tesla Stock?
It’s a good idea to put enough money into your account to buy Tesla stock after you’ve created it.
After making a stock purchase, all you have to do is check in on its progress via your Investing.com portfolio.
Whether or not Tesla has a dividend payment structure is unknown.
By definition, a dividend is a distribution made by a company to its shareholders. Simply put, it is the amount of money that you receive from a company as your portion of the profits. Consequently, if a company pays a dividend of 50 cents per share per quarter, and you own 100 shares, you will receive a $50 payment every three months.
High-growth stocks, such as Tesla, are attractive because investors can anticipate large returns from the company’s rapid expansion. Investors do not receive the consistent income that they would from dividends. To date, there have been no dividend payments made on common stock by the company.
Tesla has previously stated that it will use any future profits to fund the company’s expansion, so it will not be paying cash dividends in the near future.
Companies that have been around for a while and have a proven track record of success typically have the best dividend stocks. Find stocks that are expected to pay dividends in the near future with the help of Investing.com’s stock screener and dividend calendar.
In conclusion
Having a stake in Tesla as a shareholder can be rewarding. There are, however, potential downsides to this. When dealing with a highly speculative stock like Tesla, patience is a virtue. If an investor has faith in the company’s long-term viability, they should view their investment as a long-term commitment. In general, investing in the stock market is not as complicated as first-timers might think, and the good news is that it’s only getting less so as time goes on.