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Buy Tesla Stock: How to Invest in TSLA Shares and What to Look Out For

Tesla is the number one maker of electric vehicles (EVs) and solar panels. To buy Tesla stocks, simply follow our guide below.
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Author: Veronica Eltz
Last Updated: 28 July 2020

Tesla Inc. is a leading maker of electric vehicles (EVs) and solar panels. Its environmentally conscious customers – a fast-growing consumer market – are willing to pay a premium while doing good driving a zero emissions, sleek Tesla electric car. They are also loyal stockholders who buy Tesla stock even if Tesla misses production or profitability targets. As Germany, Sweden, India and other countries plan to go fully EV by 2030, will Tesla become the GM of the decarbonized economy?

This guide will explain how to buy Tesla stocks, evaluate the best Tesla stockbrokers, and assess how the opportunities and challenges ahead could affect Tesla’s stock value.

Best U.S. Platform to Buy Tesla Stocks

We’ve scoured the web to find the best stock broker in the U.S. for investing in TSLA and found Stash Invest to offer the best platform, lowest fees and most appealing bonus. Click the table below and get started with $5 only today.

Stash Invest - Invest in stocks with just $5

RATING

  • U.S. friendly stock broker
  • Fractional shares available - invest in stocks with just $5
  • Fees as low as $1 per month for basic banking and personal investing
  • Build a portfolio of stocks and ETFs for free
  • $50 bonus available when you deposit $300 within 30 days

Best Non-US Platform to Buy Tesla Shares

When it comes to residents outside the U.S., Plus500 is undeniably the best platform for investing in TSLA. They are listed on the London Stock Exchange and hold various licenses, offering a secure platform for all investors. They also offer 0% commissions and competitive spreads, with a large variety of shares to pick from.

Plus500 - No.1 CFD broker for non-U.S. customers

RATING

Plus500 Broker
  • Lowest spreads in the market
  • No commissions on trades
  • Listed on the stock exchange and FCA & CySEC regulated
  • Advanced stock analysis tools including historical charts, news, and realtime prices
  • Over 2,000 shares to buy
Plus500 Broker
80.5% of retail investors lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

How to Buy Tesla Stocks in the U.S. 

For buying Tesla stocks in the U.S., we recommend the broker Stash Invest. Launched in 2015 by Ed Robinson and Brandon Kreig, Stash Invest now has over 4 million users. It is a banking and micro-investing app that can be used by both Android and iOS users. Residents in the United States who are at least 18 years old can open an account and invest as little as $5. Its users only need to pay $1 per month for using its investing and banking services.

Step 1: Create your Stash Invest account

You’ll need to create your account by entering your email address and password after clicking the “Get Started” button on its website. If you want to download the Stash Invest stock trading apps, go to the App Store and install it.

Step 2: Fill out your profile

You’ll need to provide your basic information by answering some questions. By getting your answers to these questions, Stash Invest will be able to better guide you in making investment decisions. Remember to be as honest as possible when answering these questions.

Step 3: Check your investment options

Based on your answers, Stash Invest will give you investment options that are aligned to your risk tolerance. Your risk tolerance can either classed as be conservative, moderate or aggressive. Moreover, instead of presenting you with names such as ticker symbols and ETFs, you’ll see easy to understand “themes” that you can relate to.

Step 4: Fund your account

Connect your bank account that you want to use to deposit money on Stash Invest. This will also be the bank account that will be used to withdraw your investments. Take note that it takes two to three days to deposit money to Stash Invest.

Step 5: KYC & Verification

Verify your identity by providing the needed documents then create a pin number with 4 digits.

Step 6: Buy Tesla stocks

Search for the Tesla stock, enter the amount you want to invest then click the “Buy” button.

  Visit Stash Invest

How to Buy Tesla Shares outside of the U.S.

For customers outside of the U.S, we recommend Plus500, an excellent broker where the experienced and beginner traders will be at home with a simple, intuitive interface. This broker counts with over 2,000 shares and 100 technical indicators. Traders who qualify for a professional account (with a minimum portfolio value of €500k) can raise their leverage levels, for example, from 1:5 to 1:20 for stock trades. Check our tutorial below to get started.

Step 1: Sign up to Plus500

The first step to buy stocks in TSLA is to sign up to Plus500 using this link. You will be prompted to download the Plus500.com mobile app to register.  Select between a Demo and Real Money account. You may sign up for a lifetime Demo account on Plus500. After filling in basic personal information, you will gain access to the unlimited demo account. Before you can use it, you will be prompted to answer a few questions to establish your trader risk profile.

Step 2: Fund your account

When you are ready to trade with real money, fund your account. Three payment options are provided. You may be asked to verify your payment method.

Step 3: Verify your identity

Attach and submit proof of identity and a utility bill for verification.

Step 4: Buy Tesla shares

Plus500 offers a wide variety of CFDs on investment instruments, including stocks, ETFs, indexes, forex and cryptocurrencies. Geared towards the advanced investor, options are also available. Query Tesla and the price quotes for the stock, as well as put and call options, appear on the screen.

 

All stock information and the Buy/Sell commands are displayed on the general stock page for the serious trader who wants to execute quickly. The bottom half of the page displays the price chart and provides access to a broad selection of technical analysis indicators. To trade Tesla’s shares, click on Buy.

  Visit Plus500

80.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the risk of losing your money.

It pays to compare the different brokers and trading features you require. If you want high flexibility and frequent trading, then the transaction costs should be as low as possible. Recommended brokers in this case are eToro or Plus500. Or do you seek to make a one-time purchase or long-term investment? In this case, review classic online brokers such as Markets.com

A Brief Overview of the History of Tesla

In 2003, as General Motors was pulling its electric vehicle from the market, two engineers Martin Eberhard and Marc Tarpening started Tesla Motors. In 2004, Elon Musk and two other co-founders joined the company when they participated in a funding round. Tesla stock became a market darling when the company proved that electric vehicle technology was commercially viable. Tesla set new standards for electric vehicle driving range, fuel economy and acceleration time. Tesla went public in June 2010 at $17 per share raising $224 million.

The Tesla Roadster was introduced in 2008, followed by the Model S sedan, Model X sport utility vehicle, the Model 3 low-priced EV, and the Tesla Semi. In 2016, Tesla bought SolarCity – a company in which Musk was an investor, as part of its sustainable energy ecosystem strategy. Solar panels and roof tiles are built at Tesla’s Gigafactory.

Should you Invest in Tesla?

Pros of buying Tesla stock

Tesla’s ambitions are much bigger than the electric car. The company plans to outfit the loyal buyers of its cars and solar panels with an interconnected smart energy home. If want to invest in green consumer trends, here are a few reasons why Tesla stock is a good buy.

✅ Market leading EV technology – The premium car maker’s entry into the lower priced market, the Model 3, was the best selling EV globally in 2018. And Tesla just lowered its price. Tesla is following up with a Model Y SUV for the masses. Watch out Detroit! Ford and GM have some new competition in the truck market as Tesla introduces an all electric pickup truck. Tesla’s advantage as a maker of electric cars and sports utility vehicles is market leading performance. The Tesla EV has the longest driving time, quickest acceleration, and superior fuel economy to most other EVs. With a Tesla Semi, a company could save $200,000 in fuel costs over a million miles.

✅ Energy generation – The PowerPack energy storage battery is installed by over 100 microgrids worldwide. Tesla is the favourite car maker of environmentally conscious millennials. These green consumers spend $600 million a year. With the acquisition of SolarCity in 2016, Tesla is selling solar roofs to the green consumer. The connected green home will include an EV, EV charger, solar panels, and Powerwall lithium-ion battery storage charger. Like Daimler, Tesla could combine the solar battery storage and EV charging station.

✅ Strong brand equity in advanced sustainable energy technology – Tesla has a loyal investor base as the first commercially viable EV maker. It has now attached its sustainable energy brand to the residential solar market by  acquiring SolarCity. CEO Elon Musk brings more value to the brand as a successful technology entrepreneur and the founder of PayPal and SpaceX – the maker of advanced rockets and spaceships that land with precision on their space pads when they return from NASA space journeys.

Cons of buying Tesla stock

Missed production targets – The challenge for Tesla has been developing the production and assembly line to keep up with orders. By the end of 2018, Tesla was making over 86,000 cars a quarter versus 6,000 quarterly five years earlier. In 2018, as Model 3 became the best selling premium car in the United States, Tesla met production orders and produced two consecutive profitable quarters.

We’ve basically almost doubled our fleet every year. Every year, we make as many cars as we did in all prior years. So this is … I think maybe the fastest that a complex manufactured object like a car has grown in history. Elon Musk, CEO, Tesla

Big auto is entering the market – As more countries announce a transition to all electric vehicles by 2030, auto makers will be accelerating their roll out of new EV models. Tesla is an opportunity to invest directly in the electric car market. The leader in autonomous cars Google’s Waymo is putting its technology in electric cars, but the Google stock price will not reflect the EV market any time in the near future. Likewise, Nissan, Hyundai and BMW stock still reflect revenues from gas-guzzling cars.

Self-driving cars revving up – Tesla vehicles are already outfitted with autonomous driving functionality, but many self-driving cars like Google’s Waymo will also vye for market share. Daimler and BMW have announced a $1 billion partnership focused on delivering mobility services with an all-electric, self-driving fleet of vehicles and EV charging stations. Like Tesla EVs, these cars will provide taxi and delivery services and charge and park autonomously.

China’s BAT (Baidu, Alibaba, Ten-cent) companies have invested billions in electric and autonomous car makers in China. Investors wanting exposure to a diversified portfolio of EV companies could buy Alibaba stock. Alibaba plans to make EV cars available for test drives through vending machines.

 

Although Tesla has had spotty profitability since it launched its first EV in 2008, continued profit growth is expected in 2020 as the EV maker enters a more advanced production stage. Our opinion is that Tesla is a solid investment for any investor wanting to make a long-term investment in the transition to electric vehicles.

Tesla Stock : Current Prices and Summary

Tesla has something in common with Bitcoin – analysts like making very bold price predictions for Tesla shares. The consensus forecasts of analysts following the stock are more reasonable. The average one-year forecast is in the low 300s and five-year forecast the low 500s. The market is placing a high value on Tesla’s EV technology and first mover advantage. At a market cap of $40.9 billion, the market values Tesla at only $7 billion less than BMW (BMW) – most likely Tesla’s main competitor in the lucrative Chinese market where Tesla is building one of its lithium-ion battery gigafactories. BMW generated five times more revenue than Tesla’s $21 billion in 2018.

Interestingly, $40 billion is an informal forecast of annual revenue of Apple’s secretive electric car. Though 5,000 employees are said to be working on the car, Apple is smart to keep the project under wraps. The press is playing a find-and-report autonomous and EV car accident game. You can buy Apple stock without worrying about the effects of accident reports. Tesla appears to have turned the corner to longer term profitability and therefore Tesla stock will be less affected by the media and rumour mill. The company has reported two consecutive quarters of profitability and expects to continue to grow profits in 2020. Tesla’s price-to-forward earnings in the fourth quarter was 67. In comparison, the forward price ratio of BMW is 6.5. Tesla’s recent $1.8 billion junk bond issue rated the company near-investment grade.

TSLA price quote

Tesla (TESL)
Price$ 170.93Daily high$ 171.44
Volume18963658Low$ 169.50
Variation12:51Opening$ 169.71
+ / -%00:30%Day before$ 170.42

Tesla Shares: Forecast 2020–2023

The investor choosing to buy Tesla stock today will be investing in the transition from CO2-emitting gas and diesel vehicles to clean electric cars. As noted above, the market is placing a high value on Tesla’s market potential in the new EV world.

2020 – Model Y for the masses

In 2020, millennials will spend $1.4 trillion, one-third of all retail spending. This is good news for their preferred car brand, Tesla. Tesla is introducing new models that will appeal to the thriftier spending millennial. Tesla’s $35,000 car, Model Y will compete with new EV competitors. High sales are expected for the SUV Model Y for the masses recently announced. Tesla’s $88,000 SUV, which cuts out the mid-market, will appeal to the higher net worth millennials who are expanding their families.
The outlook for Tesla stock is median-to-high.

2021 – Big auto competition

By 2021, many of the major car makers will have entered mass production of EVs. The Audi eTron, BMW i3, Jaguar I-PACE, and Mercedes EQC will all be competitors on the high end. BMW is currently filling 2000 jobs. GE and Daimler are also making trucks. Tesla will also be selling these electric car buyers its home energy system. The millennial home will have a solar roof, energy storage, electric car and EV car charger. As EVs take over the auto market, Tesla will be treated as a grown up auto manufacturer rather than a way to invest in tech stocks. Median stock growth is forecast.

2022 – Big production plans

Bold stock forecasts are being made for Tesla from 2022 and beyond. Tesla plans to build out four Gigafactories by 2025 in preparation for the all electric vehicle market. G3 in Europe and G4 in China will be underway. Competition will be intense against Chinese EV makers, which are already main competitors. Though Tesla surprised the market by selling 60 percent more lower priced cars than its nearest Chinese competitor in 2018. Alibaba stock may be a partial play on the EV market by 2022. Low-to-median growth is forecast.

2023 – Ramp up for 100% EV markets

By 2030, Germany, Sweden and India plan to convert to all electric vehicles. Investors who invest in Tesla stock and the EV industry early could benefit as electric car sales replace the gas guzzlers. This transition will require a significant ramp up in EV production. As the first mover and incumbent electric car maker, Tesla will see strong sales growth. Over the next seven years, EV production will surpass that of the gas-guzzling vehicle market. High-to-median stock growth is forecast.

Conclusion

Should you buy Tesla stock? Can Tesla continue to develop electric cars with the best performance in the market and remain profitable? In 2018, Tesla’s research and development costs as a percent of sales were falling, but the company has not compromised on performance. The best selling luxury car worldwide in 2018, the Model 3, was second in fuel economy only to the Hyundai Ioniq while delivering the smooth ride, speed  and acceleration of Tesla’s higher priced models. We think Tesla can continue to produce top performing EVs at competitive prices for both the premium and mid-price market.

If you have made up your mind and are ready to invest in Tesla, we recommend doing so via the platforms discussed in this article which are reputable and offer the best fees.

Interested in diversifying your portfolio why not buy Amazon Stocks? Check out our guide on how to buy stocks here.

Stash Invest - Invest in stocks with just $5

RATING

  • U.S. friendly stock broker
  • Fractional shares available - invest in stocks with just $5
  • Fees as low as $1 per month for basic banking and personal investing
  • Build a portfolio of stocks and ETFs for free
  • $50 bonus available when you deposit $300 within 30 days

Plus500 - No.1 CFD broker for non-U.S. customers

RATING

Plus500 Broker
  • Lowest spreads in the market
  • No commissions on trades
  • Listed on the stock exchange and FCA & CySEC regulated
  • Advanced stock analysis tools including historical charts, news, and realtime prices
  • Over 2,000 shares to buy
Plus500 Broker
80.5% of retail investors lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

FAQs

Is Tesla’s investment in the residential solar business profitable?

Tesla bought SolarCity for $2.6 billion in November 2016. Elon Musk , who served as chairman of SolarCity, owned 22 percent of the stock. Tesla’s plans are to make the maker of home solar panels and roofs profitable by cutting costs and leveraging the synergies with its core EV business. Both sell to the environmentally conscious millennial market. Together with Tesla Powerwall and Powerpack products, the electric car and home solar products are part of Tesla’s sustainable energy ecosystem.

Is Tesla in the space and hyperloop businesses?

Tesla CEO Leon Musk is a serial entrepreneur who has several companies, besides Tesla. He has taken three companies to a market value of more than $1 billion – Tesla, PayPal, and SpaceX. SpaceX makes advanced spaceships and rockets that deliver supplies to NASA space stations. Its plan to one day create a human colony on Mars is also separate from Tesla’s business. The hyper loop venture, called the Boring Company, is an underground rapid transit system that transports vehicles under and between cities to avoid traffic and reduce travel time.

Are Tesla EVs self-driving cars?

All Tesla cars are built with fully functionality self-driving hardware, although this function is not currently activated in the vehicles. In the future, the Summon feature – controllable with a smartphone app – will find you a parking spot and drive to your front door to pick you up.

Where and how can you buy Tesla stock?

You can buy Tesla shares from online stockbrokers. eToro and Plus500 are examples of Tesla online brokers providing intuitive trading platforms for online stock trading. After signing up online, type in the TSLA ticker, place your order and you will become an owner of Tesla shares.

A-Z of Stocks

 

Remember, all trading carries risk. Past performance is no guarantee of future results.
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Veronica is a stock and crypto expert who lives with her husband and golden retriever in Ohio. She has written on trading and risk management for financial and fintech publications around the globe. Coverage ranges from emerging blockchain developments and ICOs to asset tokenization, and crypto and derivatives trading strategies for both the individual and institutional investor market.

6 thoughts on “Buy Tesla Stock: How to Invest in TSLA Shares and What to Look Out For

    1. Hello Golem40, Tesla is facing a lot of mixed emotions from the mainstream media which is why Tesla stocks’ demand is fluctuating so much. However, we can be sure that Tesla is slowly getting back on track and its stocks will soon start rising consistently as the company grows in the future.

  1. That all sounds great but I am thinking about the problem with missed production targets. What may be the outcomes for us?

    1. Hello Anja8, the missed production target scenario was once in a blue moon situation which actually strengthens the argument in the favor of Tesla. The fact that even the EV manufacturer, as well as renowned market analysts, couldn’t anticipate the high demand of Tesla Model S proves that the company is going to grow rapidly in the near future. Plus, Tesla has finally gotten a hold on its production rate and has been able to meet the market’s demand.

    1. Hello akd_012, you cannot ask for a refund as you own the stocks that you purchased. What you can do, however, is sell your stocks on the platform where your stocks are stored and get the money back.

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