How To Buy Tesla Stock

Tesla is an American electric car manufacturer, responsible for some of the most innovative clean energy vehicles on the market. It’s prices of stock have risen strongly in recent years and it’s popularity just continues to grow. If you are looking to buy Tesla stock, here’s what you need to know:

Understanding The Basics of Investing

Investing in the stock market can be risky, and as with any investment, it’s important to approach it with caution. Before investing in Tesla, it’s important to understand the basics of investing and the stock market. Here are some key points:

• Research Although you can get away with investing with a limited knowledge of the stock market, it’s important to understand the basic principles before diving in. Look into the company you are investing in and conduct research into the current market trends and read financial research reports.

• Plan and Prepare Your Investment Goals Before you start investing, have a clear plan of what your investment goals are e.g long term growth, income, diversification. Once you have clear goals, work out which strategy is best to reach these goals.

• Choose the Investing Platform Depending on your plan and the style of investing you are looking to undertake, you will need to select an investing platform or broker. You should consider their fees and the investing tools they provide to ensure they are the right fit for you.

• Create a Risk Management Plan Part of investing will involve understanding the level of risk you are exposing your investment to, and how you can manage it. Identifying how much money you are willing to risk and creating strategies to reduce risk are key to any successful investments.

Understanding Tesla Stock

Tesla is the world’s leading electric car manufacturer, currently valued at $89 billion. Its revenues have experienced tremendous growth in recent years, reaching $25 billion in 2020. Its profits for 2020 were just $721 million, however. But its future seems positive, with Wall Street analysts believing the company’s growth prospects still remain strong.

Which Option Is Best When Buying Tesla Stock?

When looking to buy Tesla stock, you have three main options:

• Direct stock purchase

• Brokerage accounts

• Mutual funds

Direct Stock Purchase

Direct stock purchase is the simplest option as it involves purchasing stock directly from the company, avoiding the need for a broker.

There are several ways you can do this, such as buying through a Direct Investment Plan (DIP) or Company sponsored Investment Plan (CSIP). However, these plans generally have fewer features than a brokerage account.

Brokerage Accounts

A brokerage account is the most popular way to access the stock market. These allow you to place orders to buy and sell stocks, as well as actively manage your portfolio.

When selecting a broker, look for one with low fees and good customer service. You may also want to consider a discount broker if you don’t plan to actively manage your portfolio.

Mutual Funds

If you want to invest in Tesla but don’t want to manage your portfolio yourself, you may choose to use mutual funds. This strategy involves buying a share in a pool of company stocks, which is managed by a professional money manager.

Mutual funds can provide diversity and a higher degree of protection, as your capital is spread across multiple stocks. However, they are also subject to higher management fees, as you are paying a manager to manage the fund’s investments.