Tesla shares, which are traded on the NASDAQ under the ticker symbol, recently reached a record high at the $ 1,000 level, which sparked widespread interest among retail investors in what is perhaps the world's most innovative and polarizing automaker. . The company, led by mercurial founder and CEO Elon Musk, produces and distributes three fully electric vehicles: the Model S sedan, the Model 3 sedan and the Model X sport utility vehicle (SUV).
The Palo Alto, California-based automaker is one of the leading technology companies in Silicon Valley and investors have enjoyed the astonishing share rally over the past decade. Tesla shares have risen more than 3,100% since they were made public in July 2010. However, the rise of the shares has not been smooth and stable.
Like all investments, the insane price increase of the share over the past decade is a gamble on the future. As such, it helps to be familiar with roller coasters if you want to buy Tesla stock. That's because wildly fluctuating price fluctuations have become a characteristic of the stock's performance.
Although the company's progressive innovations are an inspiration to many, others are less impressed. Tesla has not always been able to achieve its production goals or its product roadmap. Novice buyers should be aware that Tesla shares do not deliver stable performance, although it has incredible rewarding potential, as has been demonstrated in recent months.
Buying and selling Tesla shares is easier than you think. The process can be as simple as signing up for a mobile app. We will discuss what makes Tesla a good purchase, different ways you can buy the shares, how you can track your shares, and more.
Below is a step-by-step guide to get started.
Is Tesla a good stock to buy?
As one of the leading innovators in the automotive industry, Tesla has generated a lot of press in recent years. It has developed a loyal cult-like following from fans and enthusiasts who believe in the technology of the company and often praises CEO Elon Musk as a visionary and showering him with dedication and admiration. At the same time, the company has many noisy critics who claim that the pioneer of electric vehicles could go bankrupt in the coming years due to high debt and high cash burn.
Before you start Tesla shares, there are a few things to consider. Analyzing a company's financial statements is probably the most difficult part of investigating inventory, but it is also the most important. Tesla & # 39; s balance sheet, quarterly results and sales prospects give you a clear overview of the business activities.
If you like what you see, you are one step closer to buying Tesla shares.
How much is a share in Tesla?
In January 2020, Tesla shares reached a major milestone, making them the first $ 100 billion listed American automaker in history.
After surpassing the combined market capitalization of Ford (NYSE 🙂 and General Motors (NYSE :), Tesla overtook Volkswagen (OTC 🙂 as the second most valuable automaker in the world. Japan & # 39; s Toyota Motor Corporation (NYSE 🙂 remains however the world leader with a market value of around $ 199 billion.
At the current rate of $ 771 from the end of yesterday, Tesla is valued at $ 140 billion. Tesla shares have more than quadrupled in value since they fell to a $ 52.99 low in 52 weeks in June 2019. The recent rally, which saw the shares rise by 335% since June, was fueled by a surprise gain for the past year, news of a production increase in the company's Chinese factory, better-than-expected annual car deliveries and excitement around the company's new "Cybertruck"
How do I buy Tesla shares?
If you do not yet have a trading account, you must open one to purchase Tesla shares. Although opening an account may sound a difficult step, it is actually fairly simple and you can set everything up in a short time.
Generally, you want a trading account with low or no trade commissions, useful tools and a minimum account that you can manage.
The emergence of free stock trading apps, such as RobinHood and Acorns, has made buying and selling of shares considerably easier for the novice investor. Online brokers without commission, such as TD Ameritrade, Charles Schwab, Interactive Brokers and E * Trade, are also good places to start.
After you have opened your account, you may want to fund it with enough money to buy Tesla shares. After you have made your purchase, you can sit back and follow the stock price using your portfolio on Investing.com.
Does Tesla pay a dividend?
A dividend is generally defined as a payment by a company to its shareholders. In the simplest terms, it refers to your share in the profit of a company. So if a company declares a quarterly dividend of 50 cents and you own 100 shares of that company, you receive a payment of $ 50 every three months
The attraction of fast-growing stocks such as Tesla is that they have the potential for huge returns through rising stock prices. However, they do not usually offer investors the fixed income of regular dividends. The company has never paid dividends on their ordinary shares. Tesla has stated in the past that it intends to retain all future income to fund future growth and therefore does not expect to pay cash dividends in the near future.
The best dividend shares are usually older, more established companies. You can use the Investing.com stock screener and dividend calendar to find shares with upcoming dividends.
Buying and owning the Tesla share can be exciting. But it also entails a number of risks. It is important to remember that success will not happen overnight if it is a volatile stock such as Tesla. Investors should follow a long-term approach to their investment, especially if they believe in the company in the long term.
In general, the process of buying and selling shares is not as difficult as newcomers expect and the good news is that it is becoming easier thanks to improved accessibility to investing in the stock market.