Investing in the stock market can be an effective way to grow your money over time. One of the most popular stocks in recent years has been Tesla (TSLA), the leading electric vehicle and renewable energy company. We will guide and provide you with key information and a step-by-step approach on how to invest in Tesla stock in 2024.
Recent Developments
On January 4, 2024, Tesla reported record electric vehicle deliveries for 2023, selling over 1.3 million vehicles globally. This represents a 40% increase year-over-year as Tesla continues expanding production capacity.
However, Tesla did miss its 50% delivery growth target for 2023 that Elon Musk originally projected. Ongoing supply chain challenges, logistics issues, and economic headwinds impacted Tesla’s growth pace. But the company maintains ambitious plans to scale EV production and capacity going forward.
Key Tesla Metrics
- Market Cap – $713 billion, largest of any automaker
- 2022 Revenue – $81.5 billion, up 51% YoY
- 2022 Net Income – $12.6 billion, up 128% YoY
- 2022 EV Deliveries – 1.3 million vehicles
- EV Market Share – 13% globally, 65% in US
- Employees – Approximately 100,000
- Supercharger Stations – Over 35,000 globally
- Gigafactories – 6 currently operating, 3 more planned
- Battery Cost per kWh – Estimated below $100 currently
- Credit Rating – BB+ from S&P, Ba1 from Moody’s
How to Invest in Tesla Stock: Step-by-step Guide
Step 1: Research Tesla Stock
Thoroughly research Tesla’s business model, financials, products, competition, risks, and recent news. Tesla aims to accelerate sustainable transportation and energy. Understanding the company enables informed investing. Focus research on:
- Company history and leadership
- Financial performance
- Manufacturing operations
- Competitive advantages
- New product pipeline like Cybertruck
- Market risks and opportunities
Step 2: Choose a Brokerage
Select a trusted brokerage platform to open your investing account. Consider fees, available tools/data, customer service, and ease of use. Top recommendations for beginners are Robinhood and Webull for their commission-free trading.
Step 3: Open and Fund Account
Open a brokerage account and deposit your investment funds. Most platforms allow funding via bank transfer, wire, check, or rolling over an existing account. Meet any minimum balance requirements.
Step 4: Determine Number of Shares
Decide how many Tesla shares to buy based on your capital and investing strategy. Current prices are around $220 per share (January 2024). Will you invest $1,000 for 4-5 shares? $5,000 for 20-25? Determine the right amount for you.
Step 5: Place a Buy Order
Use your brokerage platform to place a buy order for the desired number of TSLA shares. Specify “TSLA” as the stock symbol. Choose your order type – market order executes at current prices, limit order sets a target price.
Step 6: Review and Confirm Order
Carefully review your buy order details before confirming – ticker symbol, share amount, order type, and price. Ensure accuracy to avoid costly mistakes.
Step 7: Monitor Your Investment
Check your account frequently to monitor your Tesla position. View current stock price, account balance, and total return. Stay updated on news and earnings reports impacting the stock.
Step 8: Manage Your Position
Periodically review your investing strategy. You can choose to hold long-term or sell to take profits or cut losses. Reinvest dividends from Tesla to accumulate additional shares. Adjust your position based on financial goals.
Our guide outlines the key steps for securely investing in Tesla stock through a trusted brokerage account. Perform thorough research and exercise strategic decision-making when buying stocks.
Fees for Buying Tesla Stock
Online brokerages charge various fees that impact the costs of buying and selling Tesla shares:
- Commission fees – $0 to $10 per trade at discount brokers or up to $25 per trade at full-service brokerages. Robinhood and Webull offer unlimited commission-free trading.
- Account fees – Annual or monthly maintenance fees, typically $0 for basic accounts or up to $150 for premium accounts with perks.
- Margin interest – charged for borrowing funds from your brokerage to buy stock. Around 8-10% at most brokers.
Always understand the fee structure before investing to minimize costs.
Taxes on Investing in Tesla Stock
Taxes apply when buying and selling Tesla stock:
- Capital gains tax – Owed on investment profits when selling shares at a higher price than purchase price. Either 15% or 20% depending on income.
- Dividend tax – Dividends paid by Tesla are taxed at either 15% or 20% for most taxpayers, or 0% for lower income brackets.
Taxes on investments vary by country. Consult a tax professional to maximize returns when investing in Tesla or any other stock.
Conclusion
Investing in Tesla requires diligent research, strategic planning, and ongoing monitoring. Our comprehensive guide has outlined the key steps for purchasing Tesla stock, emphasizing the importance of selecting a trusted brokerage, understanding Tesla’s business and risks, determining an appropriate number of shares to buy, placing informed buy orders, and continually managing your investment position based on your goals and risk tolerance, as well as changing market conditions.
With the proper self-education and discipline, investing in Tesla stock can offer favorable exposure to electric vehicle technology and clean energy innovations.
FAQs
Is now a good time to buy Tesla stock?
There is no definitive “right” time to buy a stock, but Tesla remains a leading electric vehicle company with massive growth potential. Consider your risk tolerance and research Tesla’s valuation and future outlook to determine if now aligns with your strategy.
What stock price is considered good value for Tesla?
Tesla does not offer much value based on traditional metrics like P/E ratio. Key levels to watch are analyst price targets, typically $200 to $400, and all-time highs around $400. Buy at support levels during dips.
Can I buy Tesla stock directly from Tesla?
No, you cannot buy shares directly from Tesla itself. You must purchase TSLA stock through a brokerage account on public stock exchanges where the shares are traded, like NASDAQ or NYSE.
