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 skyrocket making any shares rise in value drastically.
Especially with the recent exposure, the company received praise 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?
Here is our top-rated broker for Australian traders.
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.
- Licenses: 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 platform 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 platform to scam you. It’s important for you to read some reviews. 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.
An important factor to consider is that when you are buying Tesla shares, you are actually purchasing international shares.
Not all platforms can give you access to an international or American market.
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, 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.
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.
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 TSLA
Here are the top reasons why Tesla shares might be a great addition to your investment portfolio:
- Innovation and Vision: Their innovative approach to business has been instrumental in its 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: Financial stability is a reflection of its 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. This diversification helps to mitigate risks and provides you with exposure to multiple markets and industries.
- Strong Leadership: The CEO, Elon Musk, is a visionary entrepreneur who has a proven track record of success. His innovative approach to business has been instrumental in its success, and he continues to drive the company forward with new ideas and technologies. His strong leadership and vision provide you with confidence in their ability to continue delivering strong returns.
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.
Top Rated Platforms For TSLA Shares
There are two options if you want to get started.
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 person can only afford to buy a handful of shares.
Buy TSLA using a CFD Trading Platform
Your second option involves buying via CFD trading apps. Here is a list of the top trading platforms.
Let’s examine both of your avenues:
This is a great option if you are new to investing or have a 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 leverage. You are only required to put up a fraction of the cost of the shares. 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 platforms 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.
Opening Your Trading Account
Once you have narrowed down the right platform 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.
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 platform 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.
Performance of Tesla in Australia
It is essential to understand their 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, the stock performance has also been noteworthy.
From January 2020 to January 2022, the stock price of Tesla 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 the financials, here is a table showcasing their 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.
Buying shares carries risk, and it is recommended to conduct thorough research and analysis before making any investment decisions.
If you’re an Aussie interested in obtaining exposure to Tesla, the innovative energy storage and electric vehicle company founded in 2003, there are several ways to align your investment strategy with this NASDAQ 100 listed firm.
The first step is to choose a broker, or rather, find a broker that offers access to US markets such as the NASDAQ stock exchange where Tesla shares are traded. Several online brokers offer this service, but be sure to explore all your options and understand the law and regulations in your area before making a choice.
This step is essential because buying Tesla shares from Australia requires you to engage in international share trading, and this may involve exchange fees, potential tax implications, and the need to find a broker that aligns with your needs as an active trader.
An alternative to buying Tesla shares directly is to consider funds or ETFs that include Tesla in their portfolio.
ETFs (Exchange Traded Funds) like the Vanguard S&P 500 or others that track the NASDAQ index can offer exposure to Tesla, alongside a diverse range of other shares such as Tesla. This method of investment could be more suitable for those who want a diversified investment strategy.
Additionally, some brokers also offer the opportunity to buy a fractional share of Tesla, meaning you don’t have to purchase a whole share, which can be particularly beneficial given Tesla’s often high share price.
Remember to clarify whether market order or limit order fits your investment goals before you transfer funds to open an account, and always take heed of the factual information and disclaimers provided by your chosen platform.
Frequently asked questions
What affects the stock price of Tesla?
The key factors that affect the 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?
The long-term growth prospects of Tesla 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.