How to Buy Tesla Stock TSLA

Shares of TSLA stock “rallied an incredible 81%,” per Barron’s. Basically, today is the last chance for investors to buy into TSLA stock and benefit from the split, earning this dividend. As InvestorPlace’s Eddie Pan reports, “shareholders on record will receive an additional two shares of TSLA stock […] after the market close on Aug. 24.” These shares will come in the form of a dividend. Tesla’s P/E and price-earnings-to-growth (PEG) ratios look exorbitant compared to those of legacy automakers. Experts suggest aiming for three-to-six months’ worth of expenses, though even $500 to $1,000 is a good start.

• Our estimates are based on past market performance, and past performance is not a guarantee of future performance.
• If Tesla can roll out self-driving features that are better than its competitors, its stock price may see further gains in the long term too.
• Our partners cannot pay us to guarantee favorable reviews of their products or services.
• Some brokers even offer fractional shares if you don’t want to invest a large amount of money.
• However, Tesla’s latest quarterly results seemed to wipe away those fears.

That’s a good set of numbers considering the company flirted with bankruptcy a few times in its early days. Thanks to its much-loved electric vehicles (EVs), and the leadership of its one-of-a-kind CEO, Elon Musk, Tesla is gradually becoming the iconic company the bulls envisioned. Of course, the market has already recognized Tesla’s extraordinary momentum, driving up the stock price.

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Falling gross margin can indicate increased cost of goods or weak pricing power, and with Tesla cutting prices on its models, this metric will come under further pressure. Still, CFO Zach Kirkhorn stated in the conference call that Tesla expects to post at least a 20% gross margin moving forward, even with the price cuts. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. The market correction going on over the past several months has spared no company, not even Tesla (TSLA 4.69%). The investor darling has lost more than a quarter of its all-time-high market capitalization since early November.

The other trading strategy I like to use is The Wheel Strategy, but with Tesla this would be fairly expensive. I believe with the technicals everything is already factored into the prices. This is why, for me, it’s easier https://investmentsanalysis.info/ to trade with technical analysis than with fundamental analysis. For Tesla, we see that by far the aggressive is sticking out and giving you the biggest profit, the biggest ROI, with a winning percentage of only 50%.

It’s important to keep in mind that investing in any stock involves risk and potential loss of capital. Additionally, it is recommended to think carefully about how TSLA fits in your portfolio, and no more than 5% of your portfolio should be invested in any individual stock. Despite concerns over the company’s capital structure, Tesla’s retained earnings balance was positive at $331 million by the end of 2021. The company has also announced plans for a potential second stock split after a successful five-for-one stock split in 2020.

Factors Affecting Tesla’s Stock Price

Now, one could argue 13 days is still relatively little supply (which I’d agree with), but investors should keep an eye on this number to ensure it doesn’t reach an egregious level. That would indicate Tesla is building vehicles, but there isn’t consumer demand to buy them. For historical reference, this metric rose to 31 days in first-quarter 2019, so Tesla still has a ways to go before reaching this threshold. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.

Tesla’s stock price was essentially flat for several years after the 2010 IPO. In 2008, the carmaker had endured a near-death experience, and in the lead-up to the IPO and afterwards, it was selling only one Bollinger bands strategy car, the original Roadster. The business plan at this point was for CEO Elon Musk and his team to keep the lights on long enough in order to roll out Tesla’s first built-from-scratch car, the Model S sedan.

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Your emergency fund should go not into an individual stock like Tesla, but into a high-yield savings account where it is safe and accessible. You can access research, analyst ratings and other key information about Tesla via your brokerage account or a financial information website. If you like what you see, your next step is to consider the rest of your portfolio. Before you load up the trunk with Tesla shares, pop open the hood and see what you’re really getting into.

The electric-car maker is now one of the most valuable companies in the world. Going forward, Tesla will need to demonstrate near-flawless execution on its expansion plans in order for the stock to continue rising. On the other hand, Tesla has several growth drivers, such as a strong brand image and customer loyalty, artificial intelligence, innovation culture, software, and its own supply chain. Additionally, Tesla’s stock is considered cheap with a forward price-to-earnings ratio of just 23, compared to Walmart which trades for the same multiple despite operating in a mature industry.

More Reasons to Invest

As a whole, I do hope that this article allows you to understand Tesla’s situation better and be able to come to a conclusion on whether or not you’d like to invest in Tesla. The financials are not on Tesla’s side at the moment, with the high debt and negative earnings per share. They are also getting a lot of negative attention at the moment. But, with their innovation and Tesla’s vision, it is definitely a stock to look into, or read up more about. It is important to note that these are just predictions, and the actual stock price could go up or down. While asking «what happens if I buy tesla stock today?» – It is always important to do your own research before investing.

• Clearly, this could be somewhat of a distraction, and it worried many investors.
• With Tesla’s stock price down, some investors are wondering if they should take this opportunity to load up on shares.
• In addition, they have a high debt to equity ratio (which means that they have very high debt) of 243%.
• The financials are not on Tesla’s side at the moment, with the high debt and negative earnings per share.

Given Tesla’s $550 billion market capitalization today, the market-cap-weighted index will need to make a major purchase of the company’s shares. In addition, many funds that mimic the S&P 500 will likely similarly purchase shares. Investors seem to be betting that this enhanced appreciation for Tesla stock among funds will drive the price higher. Tesla’s financial situation has improved significantly over the past few years, with the company becoming profitable in 2021 and beating earnings per share estimates. The company’s revenue for the fourth quarter of 2022 was $24,318 million, and sales were $599 million, compared to $628 million a year prior. Elon Musk, who contributed $6.5 million to the initial round of investment, became chairman of the board of directors and oversaw the design of the Roadster.

Historical Prices for Tesla

Still, if we put all its grand plans aside, Tesla is first and foremost an automobile company (at least for now) and will need to face all the challenges in this industry. When you are trading with technical indicators, the hype around Tesla and other companies doesn’t matter, right? This is where these fundamental evaluations seem to be out of the way.

NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments. One of the most polarizing stocks in today’s market is Tesla (TSLA 4.69%). Bears will tell you it’s just an over-valued automaker, while the bulls will claim it’s a technology company that makes cars. In reality, it’s a mixture of these things, but investors have to determine which case has more merit. With Tesla’s stock price down, some investors are wondering if they should take this opportunity to load up on shares.

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That brings us to the next factor that is supporting Tesla stock’s rise. As I pointed out yesterday, the recent stunning sell-off in Tesla shares has reduced the cost of the stock to levels not seen in the past two and a half years. At 32.5 times earnings, Tesla’s stock is valued quite cheaply — if, that is, Tesla achieves analysts’ targeted earnings growth rates of 35% over the next five years.