Tesla is an American company, that was established in 2003. The CEO, Elon Musk, is one of the richest people in the world. This is partly due to the fact that he owns more than 15% of the company.
Tesla specializes in the production of electric cars and is seen by many as an innovator among the other car companies.
The recent rise in environmentalism, as well as the active steps taken by the world’s leaders to lower pollution, have caused the interest in electric cars to sky-rocket making any shares rise in value drastically.
Especially with the recent exposure, the company received praises for their self-driving cars. The co-founder of the company, Elon Musk, is a big online personality at the moment, which is definitely good publicity.
The ticker symbol on the stock exchange is TSLA. The market capitalization (at the time of writing this article) is over 1 trillion.
How to Buy Tesla Shares in Australia?
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It’s safe to say that for this investment you can stick to the well-known platforms Etoro, HFtrading, Easymarkets and Fortrade are the ones I personally trust. There are no hidden account fees on these trading platforms.
If you found or plan to go and look for a different broker there are some things that you should consider before placing your trust and money in their hands.
- Licences: It may seem obvious, but if a place doesn’t have a license there is most likely a reason the owner couldn’t get one. A license for a broker isn’t something you “Don’t have the time to get”. It’s in my personal opinion just as important as SSL transaction encryptions.
- Reputation: It’s not impossible for a licensed broker to scam you. It’s important for you to look around, even just Google the broker and read some reviews for a start. Make sure they are a generally well received platform.
- Owners: Call me paranoid but when it comes to investing sums of money potentially in the tens if not hundreds of thousands I want to make sure that the owners of the platforms aren’t the same ones as some old scam website. Or maybe just a shady company that you wouldn’t trust if you read up one their past.
I guess what I’m saying is that a quick Google search about the company that runs the given platform and potentially their parent company may reveal information that could sway you to either avail of or do a one-eighty and abandon a broker.
Another point to consider is that when you are buying Tesla shares, you are actually purchasing international shares. Now, bear in mind that not all brokers can give you access to an international or American market. So, when selecting your broker, it is important to make sure that they can actually provide you with this avenue.
You can buy Afterpay shares and Qantas shares as well.
Should I Buy Tesla Stock?
You can buy Tesla stock from the US stock exchanges.
There are many reasons (mentioned above) why you should invest in Tesla, and there are many trading platforms to choose from. Ultimately you want to know if it’s a good idea? Investing in planting trees is a great idea but you are 100% guaranteed not to make any money of it.
Looking at the Tesla share value it’s clear that they are currently rising up from a sudden drop.
Please do keep in mind this is just my opinion and I’m not an expert trader. As with all things I invite you to do your own research.
From the look of it this may be a good time to buy shares. Compared to the last 5 years there has been an uptrend. If continued, it will result in the value rising a bit more before plateauing soon.
It’s important to consider the situation of the business as a whole depending on if you think the Tesla electric cars are going to become the next big thing. If you think they’re just a short-lived gimmick you need to decide whether or not to buy the shares.
Of course, it is just as important to know when you should invest in Tesla. This means carefully analyzing the market and pinpointing the exact moment in which the shares may appreciate or depreciate. In doing so, you increase your chances of making a profit off of the company. If you aren’t a seasoned trader, this could take some time and practice to master.
Don’t forget that the share price is always changing because stock markets are volatile. Wall Street loves trading Tesla stock.
Reasons To Buy Tesla Shares
Here are the top reasons why Tesla shares might be a great addition to your investment portfolio:
- Innovation and Vision: Tesla’s innovative approach to business has been instrumental in their success. They have disrupted the automotive industry by developing cutting-edge electric vehicles that are both sustainable and environmentally friendly. Their innovative vision has enabled them to push the boundaries of what’s possible and consistently deliver impressive financial results.
- Strong Financial Performance: Tesla’s financial stability is a reflection of their ability to disrupt traditional industries and create new markets. They have consistently delivered impressive revenue growth and have expanded their market share significantly. Their strong financial performance is a testament to their innovative approach and their ability to adapt to changing market conditions.
- Dominant Market Position: Tesla is the clear leader in the electric vehicle market and has established a dominant market position globally. As more consumers shift towards sustainable alternatives to traditional gas-powered vehicles, Tesla is poised to capture an even larger market share. This dominant position provides investors with an opportunity to capitalize on the growing demand for sustainable energy and transportation solutions.
- Diversification: Tesla has diversified its business beyond just automotive manufacturing. They are also involved in solar energy and battery storage, providing additional growth opportunities for investors. This diversification helps to mitigate risks and provides investors with exposure to multiple markets and industries.
- Strong Leadership: Tesla’s CEO, Elon Musk, is a visionary entrepreneur who has a proven track record of success. His innovative approach to business has been instrumental in the company’s success, and he continues to drive the company forward with new ideas and technologies. His strong leadership and vision provide investors with confidence in the company’s ability to continue delivering strong returns.
Investing in Tesla shares provides investors with an opportunity to capitalize on the company’s innovative approach, strong financial performance, dominant market position, diversification, and visionary leadership. As the world shifts towards sustainable energy and transportation, Tesla seems to be well-positioned to continue and dominate this market.
What Platform to Use to Buy Tesla Shares?
There are two main options available to you if you decide to invest in Tesla.
Buy TSLA through a Brokerage Account
The first involves buying the shares outright using a brokerage account. This is known as share trading.
When you engage in share trading, you own the shares that you are purchasing. As such, you have a stake in the company. You may also receive dividends. The top option for making a profit is to sell your shares once they have significantly increased in value.
While this does sound good, there is a catch. Understand that Tesla is one of the most heavily traded companies in the world. Due to this, the cost of each share is considerable. So, the average investor can only afford to buy a handful of shares.
Buy TSLA using a CFD Broker
Your second option involves buying shares via CFD trading. Here is a list with the top trading platforms.
Let’s examine both of your avenues:
This is a great option if you are new to investing or have limited amount of capital. Here, you speculate about the price movement of Tesla shares. Your profit is based on the accuracy of your prediction regarding the rise or fall of the share prices. However, unlike with share trading, you don’t actually own any of the shares.
So, why is this a better option for most investors? Well, to start with, CFD trading is far more affordable. This is due to leveraging. You are only required to put up a fraction of the cost of the shares – your broker handles the rest. As a result, you may only need to pay 5 to 25 percent of the original cost of the shares!
The other benefit of CFD trading is that you can place trades regardless of the direction of the share price. This means that you can stand to make a profit irrespective of whether the value of the shares are increasing or decreasing.
CFD trading also makes more sense if you are attempting to diversify your portfolio. Since you aren’t required to put all your capital towards the shares, you will still have enough to invest in other elements of the market.
With CFD brokers you can start with as low as AU $100. Just pick your favorite trading platform and get started. Some international platforms let you trade ASX shares as well as US shares.
Why Buy Tesla Shares?
Should I invest in Tesla? That’s up to you.
Here are a few reasons why it might be a good idea to invest in Tesla.
For one you are supporting a movement that could and already is reducing the use of fossil fuels world wide.
That aside the previously mentioned public interest in the concept and as a result higher sales and more investors make Tesla an interesting area which seems to grow non-stop recently.
Naturally any trader worth their salt would, at the very least, consider an investment like this.
One thing to look out for is the share price. Avoid buying at all time highs and watch the p/e ratio as well. A good market price can make the difference between profit and loss.
Opening Your Trading Account
Once you have narrowed down the right broker for you and determined what the right trading option is, it will be time for you to open your trading account.
Now, the exact process may differ a bit, from one broker to another. For the most part, however, it is rather simple. During the registration process, you will be required to present certain documentation. This will assure the broker that you are a legitimate trader.
After the verification process is complete, you can select your preferred trading account. Most brokers give you the opportunity to select between several types. When you are doing so, keep a few things in mind – your budget, trading frequency, and features that you would prefer.
The next step involves depositing money in your account. Once again, there are some calculations involved. This includes the minimum deposit requirement for the account as well as the sum that you wish to invest in a particular trade.
If you are purchasing shares, then you will have to determine how much the total cost and any other charges involved will be. On the other hand, if you are involved in CFD trading, you only need a fraction of the cost. The exact amount will differ depending on your broker.
Keep in mind that most brokers will require to have a minimum balance in your account. Thus, this amount must be considered when doing your calculations about how much money you need to deposit.
Tesla’s Performance in the Australian Market
Before making a decision to invest in Tesla shares, it is essential to understand the company’s performance in the Australian market. In 2021, Tesla reported a 158% year-over-year increase in Australian sales, selling over 3,600 electric vehicles. This represents a significant growth in demand for electric vehicles in Australia, which is expected to continue in the coming years.
In addition to its impressive sales numbers, Tesla’s stock performance has also been noteworthy. From January 2020 to January 2022, Tesla’s stock price increased by over 550%, with a current market capitalization of over $800 billion USD. It is important to note that this increase in value is subject to fluctuations and that past performance does not guarantee future returns.
To further understand Tesla’s financials, here is a table showcasing the company’s key financial indicators for the fiscal year 2021:
|Revenue||$46.04 billion USD|
|Gross Profit||$10.24 billion USD|
|Net Income||$1.61 billion USD|
|Operating Cash Flow||$9.43 billion USD|
|Total Assets||$57.35 billion USD|
These numbers indicate that Tesla is a financially sound company with a growing demand for its products in Australia and around the world.
It is important to keep in mind that investing in Tesla shares carries risk, and it is recommended to conduct thorough research and analysis before making any investment decisions.
Do your Research Before Buying
Personally with the reputation I see Tesla cars having and the nature of the modern-day person, I feel that Tesla cars will remain. They will only continue to expand in scale and as a result, also in value. If you think in a similar way then consider buying Tesla shares.
Because as with all things the more mainstream the product or company becomes, the higher the price will go. Even if now the price seems to be at its highest it’s important to look at the big picture.
- Will the next “Tesla explosion” be worth twice as much as the top price now?
- Or will it only be worth half of that?
In other words research is key, as with all trading.
Here are the research tactics that you can utilize to increase your chances of making a profit with Tesla shares:
Engage in Both Technical and Fundamental Analysis
If you have been tracking Tesla’s progress in the news, you can appreciate the fluctuations in the company’s value. It has had just as many highs as lows. This means that you can’t blindly invest in the company.
Rather, you need to conduct both technical and fundamental analysis first. This will give you an idea of just what it is that you are getting into. Technical analysis gives you the opportunity to identify trends and patterns. This is managed by looking at the previous price movements and volume.
Fundamental analysis, on the other hand, focuses on the finance and management of Tesla. Simultaneously, you will also look at the current global and economic situation and determine how this will impact the share price of Tesla. Combined, these two forms of analysis make it easier for you to make a more informed decision.
Analyze the Operation
You should also do a deep dive into how the company is being operated. This includes taking stock of past and future inventions, the viability of certain projects, and more. These details will help you to gain a more authentic understanding of the direction that Tesla will be headed in.
Narrow Down Your Entry Point
It doesn’t matter if you are engaging in share trading or other types of trading. At the end of the day, your main goal is to make a minimum amount of investment and maximum amount of profit. To do this, you need to identify the perfect entry point for you.
Thus, with share trading, your entry point is when the cost of the shares is at a price point that is suitable for you. To determine this, you should take a look at your capital and calculate how much you are willing to risk with any one investment. Once you have found the ideal price point for you, it is just a matter of waiting or placing a delay order.
You need to minimize the risk of your investment. This is where a Stop Loss order comes into play. Setting this up ensures that you don’t lose any more than you are comfortable with on a single trade.
Conclusion: Buying Tesla Shares in Australia
Well, we’ve gone over the basics of the Tesla share situation. It’s up to you to go out and see if it’s the right time to invest in Tesla.
The fact that Tesla is an American company makes is a tiny bit harder to buy stock from Australia. The existence of multi-national traders such as Etoro, Fortrade and Easymarkets are the solution. They make today easier than ever to invest in foreign companies and buy shares.
While there is no denying that Tesla is an excellent investment, it is still important to follow the necessary guidelines. Thus, when buying shares or getting involved in trading, pay attention to the information provided here. This will help you to maximize your profit while simultaneously mitigating your risk.
Frequently asked questions
What are the key factors that affect Tesla’s stock price?
The key factors that affect Tesla’s stock price include company performance, news and media coverage, economic conditions, and industry trends.
What are the risks associated with investing in Tesla, such as regulatory changes or competition?
The risks associated with investing in Tesla include regulatory changes and competition.
What are the long-term growth prospects for Tesla and how does the company plan to expand its business?
Tesla’s long-term growth prospects depend on its ability to continue innovating, increase production capacity, expand into new markets, and improve profitability and financial stability, while the company has outlined plans to achieve these goals.