If you’re considering investing in Tesla because it’s a leading player in the future of the car industry, you’re in the right place. In this article, we’ll guide you through buying Tesla shares, how to do so safely, and why you may consider investing in Tesla, one of the giants of the EV industry.
What is Tesla?
Tesla is an American clean energy and automotive technology company founded in 2003 by Elon Musk, JB Straubel, Martin Eberhard, Marc Tarpenning, and Ian Wright. The main objective of the company is to accelerate the world’s transition to sustainable energy, through the manufacture of electric cars, solar panels, and energy storage systems.
Here are some key points about this electric car company:
- 2003: Elon Musk co-founded the electric vehicle company Tesla Motors.
- 2008: The company launched its first electric vehicle, the Roadster, setting a world record for electric vehicle range.
- 2010: Tesla went public on the Nasdaq stock exchange under the ticker TSLA.
- 2012: Tesla launched the Model S, an electric luxury sedan that received numerous awards and accolades for its design and performance.
- 2016: Tesla expanded its focus to include solar energy and energy storage solutions.
- 2017: The company unveiled the Tesla Semi, its first electric truck.
- 2020: Tesla became the most valuable automotive company in the world in terms of market capitalisation, surpassing industry giants such as Ford, Toyota, and Volkswagen.
Since then, it’s been rare for a day to go by without Tesla or its founder, Elon Musk, making headlines for news, product launches, or financial results.
General information about Tesla
- Company: Tesla Inc.
- Ticker: TSLA
- ISIN: US88160R1014
- Stock Exchange: NASDAQ
Who is Elon Musk?
Elon Musk is an entrepreneur, engineer, and magnate of South African-American origin. He was born in Pretoria, South Africa, in 1971, and moved to the United States in the 1990s to study at the University of Pennsylvania. Musk is recognised for founding, leading, or investing in multiple technology and energy companies, including:
- The Boring Company
Elon Musk is renowned for his innovative and ambitious approach to developing technologies that aim to enhance the world. His enterprises have produced a wide array of products and services, ranging from reusable rockets for space travel and electric vehicles to solar batteries for homes and direct interfaces between the human brain and computers.
He is often characterised as a visionary leader in the technology sector and a proponent of progress in technology and space exploration.
How many Tesla shares does Elon Musk own?
Based on public information from the SEC, Elon Musk presently holds approximately 13% of Tesla’s shares, amounting to 412 million shares.
Who is the largest shareholder of Tesla?
Elon Musk stands as the largest individual shareholder of Tesla, possessing 13% of the company’s share capital. However, institutional investors like Fidelity Management and Research and BlackRock also hold substantial stakes in the corporation. Here’s a list of their ownership:
- The Vanguard Group: 6.5%
- BlackRock: 3.5%
- SSgA Funds Management: 1.55%
What companies does Elon Musk own?
In addition to Tesla, Elon Musk is also founder and CEO of the following companies:
- SpaceX: Aerospace technology company founded in 2002. The company focuses on the development of reusable rockets and spacecraft to make space travel more accessible and affordable. Its grand ambition is to establish a human presence on Mars.
- Neuralink: A company founded in 2016, dedicated to the research and development of brain-machine interfaces (BCI), which allow for direct connection between the human brain and a computer. Neuralink technology could have a wide range of medical applications, such as helping people with motor disabilities or neurological disorders.
- The Boring Company: Company also founded in 2016 that focuses on the construction of underground tunnels for high-speed transportation of people and goods. The Boring Company has developed tunnel technology that employs electric transport platforms to achieve speeds of up to 240 km/h. The primary aim is to alleviate urban traffic congestion.
- Twitter: In 2022, Elon Musk made a successful bid to acquire Twitter for $44 billion, thereby becoming the CEO and sole proprietor of the social media platform.
How to buy Tesla stocks in 2023? | 5 steps
To buy Tesla stocks, follow the next steps:
- Create an account with a broker.
- Access the trading platform.
- Search for Tesla shares by writing the name of the company or its ticker (TSLA) in the platform’s search field.
- Click to open a position and fill in the order details, such as how much you’d like to invest in Tesla and the type of stock order.
- Send your order, which will be executed by the broker depending on the type of order you sent.
Where to buy Tesla shares in the UK?
Here are four recommendations of brokers that allow you to buy Tesla shares in the UK:
|Stock Commission||£0||£1.75 + £1||£0||£0|
For more information about these brokers, visit the following articles:
How to buy Tesla shares with XTB step by step? | Practical example
Step 1: Create an account on XTB
To begin investing in Tesla, you’ll need an account on the XTB platform. Here’s how:
- Create account: Registering is straightforward. Provide essential personal details like your name and email.
- Verify your identity: This step involves more in-depth information, like your address. You’ll also need to submit your ID and proof of address for identity verification. A short questionnaire will help determine your level of financial knowledge.
- Deposit your funds: To purchase Tesla shares, fund your account via your preferred payment method.
Step 2: Buy Tesla shares
Now that you have an XTB account, it’s time to invest in Tesla. Here’s how to buy the shares:
- Access XTB trading platform via your preferred device (computer, mobile phone, tablet)
- Search for the Tesla shares in the search field and select the company.
- Choose the number of shares you want to buy, type of order (i.e., “at market” to buy them immediately), and press the button to send the order.
Minimum lot of Tesla shares
There is no limit of shares to buy to become a shareholder. The minimum investment depends on the broker – if your capital is quite low, you may want to opt for fractional shares instead. For instance, eToro allows you to invest as little as $10 in any share of your choice, regardless of how much one share costs.
Why should you consider buying Tesla shares?
Investing in Tesla shares can be appealing to investors seeking growth companies, especially those interested in leading firms within the EV (electric vehicle) industry and the transition to a more sustainable and technologically advanced economy.
Pioneering sustainable projects
Tesla’s track record includes pioneering projects at the forefront of sustainable technology:
- Electric Vehicle Production: Tesla is known for its high-quality electric vehicles, such as the Model S, Model X, and Model 3.
- Solar Energy: Tesla manufactures solar panels and energy storage systems for homes and businesses.
- Batteries: The company led by Elon Musk is working on the production of high-capacity batteries for cars and energy storage.
- Autonomous Cars: Tesla’s ambitious venture goes beyond electric vehicles. It’s focused on developing autonomous cars powered by artificial intelligence. The company aims to introduce fleets of robotaxis in major US cities by the end of the decade. A vehicle without a steering wheel or pedals is one of the company’s objectives.
Tesla share price | How much is a Tesla share worth?
Tesla’s stock price is closely followed by the investment community, with Elon Musk being seen as a visionary.
Below, you can see Tesla’s share price performance. The most substantial dip occurred in January 2023, but it has slowly regained momentum ever since.
Tesla stock split 4:1
At Tesla’s annual meeting in Austin, Texas, shareholders voted to approve a 4-for-1 stock split. Theoretically, this makes Tesla shares more accessible to retail investors due to the lower price, but the market value remains the same.
A stock repurchase for employees was also undertaken to give them a stake in the company’s successes.
Tesla capitalises on state subsidies and tax incentives in many operating countries. Innovations aren’t the sole focus; fiscal benefits matter too. Examples include:
- Tesla’s access to federal subsidies from a $2.5 billion US program to establish 7,500 new vehicle chargers, with 4,000 being universal.
- In the US, the Inflation Reduction Act provides up to $7,500 subsidies for electric vehicle purchases if manufactured in a US plant.
- European countries like Estonia offer up to 50% subsidies. In the UK, there are many benefits of owning a Tesla car, such as a 100% First Year Allowance (FYA), no fuel charge (as electricity doesn’t qualify as fuel), London Congestion Charge, and many more.
Sustainable ESG investment
Before investing in Tesla, consider the company’s ESG criteria (environmental, social, and corporate governance).
Tesla is recognised as a sustainability leader for its commitment to reducing carbon emissions and emphasis on renewable energies. Hence, investing in Tesla aligns with sustainable practices beyond financial gains.
Expert opinions on buying Tesla shares
Tesla’s shares have consistently gained favourable attention from the investor community. However, it’s not solely about the current electric car success story, but the future trajectory encompassing solar power plants, cities bustling with autonomous Robotaxis, and other innovative ventures. If these projects come to fruition, they suggest substantial potential for future earnings from Tesla. This anticipation is why investors are willing to invest in the company.
Here are Yahoo Finance recommendations regarding Tesla shares:
What’s particularly noteworthy is that hardly any of these experts recommend selling Tesla shares. In the most cautious scenarios, their advice leans toward holding Tesla shares within one’s investment portfolio.
Buy Tesla shares: pros and cons
In any case, let’s take a look at the advantages and disadvantages of buying Tesla shares:
|Benefits of Investing in Tesla||Disadvantages of Investing in Tesla|
|✅ Sustainability||❌ The company faces fierce competition|
|✅ Share price is affordable compared to other high-tech, growth companies||❌ Price has yet to recover its 2020 levels|
|✅ One of the leaders in EV market||❌ Highly dependent on the general economy and policies|
|✅ Favourable consensus|
|✅ Proven ability to innovate|
What companies are competing with Tesla?
In the electric vehicle market, Tesla has several competitors:
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Each of these competitors has its own strategy and business model, so it is important to research them before making an investment decision.
Buy Tesla shares: summary
While expert opinions may be cautious due to the intricate macroeconomic landscape, the overall sentiment tends to favour holding or even acquiring Tesla shares. It’s important to remember that investing carries inherent risks, and thorough research and consideration are vital before making any financial decisions.
Investing in Tesla not only offers the prospect of potential financial gains but also aligns with the larger picture of sustainability and technological advancement. As Tesla continues to redefine the automotive and energy sectors, its shares symbolise a stake in a company driving positive change on a global scale.
Why should I consider buying Tesla shares?
Investing in Tesla offers exposure to a groundbreaking company at the forefront of electric mobility and sustainable energy. With a track record of innovation and visionary leadership, Tesla’s ventures extend beyond electric vehicles to encompass solar energy, advanced battery technology, and autonomous driving solutions.
When does Tesla pay dividends?
Tesla does not pay dividends to its shareholders. Rather, it is focused on growth and further expansion in the market, hence the main benefit of buying Tesla shares is capital appreciation.
Are there risks associated with investing in Tesla shares?
Yes, like any investment, Tesla shares come with risks. Market volatility, regulatory changes, competition, and other external factors can impact the company’s performance. Additionally, Tesla’s stock price can be influenced by sentiment and investor speculation.