Tesla (TSLA) is an American manufacturer of electric cars located in California, in the Silicon Valley in the United States. Founded in 2003, the company is today led by Elon Musk.
With a market capitalization of nearly $ 400 billion, Tesla is became the 2th global automaker in terms of valuation, ahead of Volkswagen and General Motors.
The company was listed on the US Stock Exchange on Nasdaq in 2010, at an initial price of $ 17 per share.
In 2019, Tesla generated sales of almost $ 25 billion.
Tesla's growth outlook remains very strong. This is why the company is of particular interest to investors at the moment. Many of them want invest in Tesla stock.
If you are interested in becoming a Tesla Company shareholder, just read on to find out cohow to buy Tesla shares, the best brokers to do it, our forecast of the Tesla share price and we'll explain why Tesla could be a particularly interesting investment in 2020.
Buying Tesla shares in 4 steps
Buy Tesla Shares (TSLA) -Tutorial
The first thing to do is to choose among the best brokers (eToro for example given its 0% commission rate) those who offer Tesla shares on their trading interface.
Next, we will explain how to open an account in order to become a TSLA shareholder at cash or via CFDs using leverage.
If you yourself want to know how to buy Tesla shares, we will explain with the tutorial below how to go about it. To get started, just follow the 3 simple steps in the chronological order listed.
First, we will tell you which are the best brokers to use and why, how to open a trading account with them and finally how to proceed to buy TSLA shares with a few clicks either in cash or using the effect of leverage via CFDs.
Step 1: Open an account with a broker offering Tesla share trading
The first step in buying Tesla shares is to select a first-rate broker, offering TSLA shares on its trading platform.
Our advice is to turn to one of the 3 brokers mentioned in the following lines, which are both registered with the regulatory authorities and financially sound.
However, our preference goes to the broker eToro who offer to buy and sell Tesla securities without paying a commission (0% commission) on the purchase but also on the sale.
1.eToro: Best choice if you don't want to pay commissions
The broker eToro, was born in 2007 and already claims nearly 11 million customers in the world. He offers a ideal platform for novice traders who wish to invest in international stock markets with 0% commissions. Hundreds of US stocks are available including Tesla stock listed on the Nasdaq.
The trading platform offered by eToro also offers spot trading as well as CFDs ("Contract For Difference") to benefit from the leverage effect.
One of the advantages of the eToro broker is to offer a social trading ("Copy trading") allowing the replication of positions taken by other traders on the platform.
In addition, the company is approved by the main European regulatory authorities, such as CySec (Cyprus) and the FCA ("Financial Conduct Authority") in the United Kingdom, which reassures its reliability and financial soundness.
- Broker regulated in several European countries
- 0% to trade Tesla shares
- No management fees
- Ideal trading platform for beginners
- Copy-trading function available
- Little fundamental analysis on TSLA stocks
- Minimum deposit of US $ 200 upon opening
- Leverage limited to 5 on CFDs
2. Binck – The best choice for a successful trading platform
Created in 2000, Binck is a Dutch broker, authorized by the Autorité des Marchés Financiers (AMF) in France, which allows French investors to invest in most international stock exchanges, including the US Nasdaq stock exchange where Tesla shares are traded.
Binck is among the top 5 European online brokers in terms of transaction volume, providing access to more than 25 global stock exchanges.
Another advantage: the trading platform proposed by Binck – ProRealTime – is very sophisticated, with many features allowing in particular the passage of order in real time, thetechnical analysis and the monitoring of open positions.
- Possibility to trade on ProRealTime
- Several leverage products available
- Total transparency on intervention costs
- Wide choice of shares available including Tesla
- Commissions payable for trading stocks for cash
- No training offer
3. IG Markets – The best choice for using leverage with CFDs
Founded in 1974, IG Markets is one of the largest Online CFD brokers in France And in the world. It now has nearly 200,000 customers worldwide and operates in more than ten countries.
Regulated by the FCA in the United Kingdom, IG Markets notably offers a wide range of trading platforms, including MetaTrader 4 offering advanced trading tools, but also a web platform and mobile trading application.
Finally, IG offers a full training service, news and financial market analysis.
- Broker regulated in several jurisdictions
- French leader in the CFD market
- Choice of advanced trading platform
- Possibility to create a demo account for free
- Trading platform not very suitable for novice traders
- Choice of limited cash shares
Step 2: Open a trading account
Our recommended platform is eToro, especially for the fact that you will be able to buy Tesla shares on its trading interface without paying any commissions. In the rest of our example, we will therefore take eToro to illustrate how to open your trading account, deposit funds and open a position in Tesla stock.
Here are the steps to follow to open a trading account with eToro in order to'buy Tesla shares without commission.
Register with eToro
First of all, visit this link to access eToro. You will then need to provide some personal information. Then, you just have to accept the General Conditions and click on " Create an account To access your eToro account.
First, open your trading account on eToro by clicking here. To do this, you must follow the following 3 steps:
- Click on the "Join Now" or "Trade Now" button
- On the following web page, you will see a form to enter your personal data required for opening a new trading account.
- Enter all of this personal information in this form, knowing that you can also log in via Facebook or Gmail.
Once your account is created, just log in.
Credit your trading account
The platform offered by eToro offers you the possibility to open your trading account by paying an amount of only 200 US dollars (USD).
All subsequent deposits must be at least $ 50.
To do this, different deposit methods are available: credit card (Visa, MasterCard, Maestro), PayPal, Neteller and Skrill.
It is also allowed to fund his trading account by wire transfer, but in the case, the minimum deposit must be 500 USD. Note that if you use this option, your funds will not be credited immediately, it will generally take between 24 hours to 72 hours depending on your bank.
When you are ready to start buying Vivendi stock, click on the blue button at the bottom left "Deposit of funds" to can fund your account by credit card, transfer or PayPal.
Step 3: How to buy Tesla stock
Then to start buy TSLA shares, it's very simple. Simply search for the Tesla title directly in the eToro platform search box located at the top of the screen and then click on "Invest".
A new pop-up window will then open in order to place your purchase order on Tesla:
Via the eToro trading platform, you can buy Tesla stock by using leverage via CFDs ("Contract For Difference"), the maximum value of which is set at 5.
Concretely, this allows you to increase the amount invested in Tesla shares compared to your starting capital. Indeed, with this leverage, you have more capital at your disposal to invest in TSLA. So you can make a bigger profit. But, on the other hand, you take greater risks because the gains and losses are calculated based on the total amount of your position and not on the amount deposited in your account initially.
We recommend that you use CFDs with leverage only if you are a seasoned trader and take great care to cut your position quickly in the event of possible losses by using what specialists call "levels" Stop loss Because with leverage you can potentially lose more than your starting capital.
However, the process to buy TSLA CFDs on eToro is very similar to a classic transaction to buy stocks for cash. For this, you will use the window that we have already seen:
You must then set your levels of " Stop Loss "And" Take Profit », This last parameter corresponding to the price level from which you want to take your profits and therefore close your position.
Good to know : You can access many US stocks on eToro. You can for example invest in giants of new technologies You can access many US stocks on eToro. You can for example Apple shares, Renault shares and more.
Tesla Stock Price and Quotation
If you want invest in Tesla, you can do it on the Nasdaq market in the United States (coded ISIN US88160R1014 – ticker code TSLA).
The stock has been listed on the Nasdaq since 2010 and available in the US Nasdaq 100 Stoxx Global 200 stock index.
The company capitalization amounts to nearly 400 billion euros at the end of August 2020.
As of December 31, 2019, 79.85% of the capital is floating, the balance being held by Elon Musk, the CEO of the company.
Good to know : Tesla shares being listed on an American company listed on the Nasdaq, it is not eligible for the PEA, reserved only for securities in the euro zone.
Tesla 5 Year Daily Chart – Source: TradingView
After having increased by more than 30% in 2019, Tesla's stock price accelerated its strong uptrend in 2020. The company's stock indeed hit a high of nearly $ 450 at the end of last August, with the price multiplied by more than 5 compared to end of 2019.
Since the beginning of the year, prices have risen sharply. This explosion in the Tesla share price was catalyzed by the publication of better-than-expected financial results in 2020.
After reaching $ 450 during the summer of 2020, the Tesla share price appears to have takes a break in its uptrend before perhaps setting off again on the rise.
Presentation of the Tesla Share
In the lines that follow, we'll give you some essential information about the Tesla business before you invest. We will start by telling you about its history, then its main activities and finally its growth prospects in the years to come.
The Tesla company was founded in 2003 with the idea that electric cars sooner or later will interest the general public who are increasingly looking for alternative solutions to reduce their carbon footprint
Today, Tesla is one of the world's largest automakers.
Tesla specializes in the design, construction and marketing of electric vehicles.
In 2019, its turnover reached almost $ 25 billion, broken down as follows:
- sale of motor vehicles (81.2%);
- services (9.1%): primarily maintenance and repair services. In addition, the group is developing a business of selling powertrain components for electric vehicles;
- sale of energy generation and storage systems (6.2%);
- vehicle rental (3.5%)
At the end of 2019, the group had 4 production sites located in the United States (4), China and Germany.
The geographic breakdown of sales is as follows: United States (51.5%), China (12.1%), Netherlands (6.5%), Norway (4.9%) and others (25 %).
Should I buy Tesla Shares?
Wondering if now is the right time to invest in Tesla? Why should you buy Tesla shares? Here are some of the most important reasons why Tesla could be a good investment in 2020.
Strong growth in activity
Tesla has been able to do well in recent years by diversifying into energy solutions in the form of stationary batteries, called powerwall for the residential sector and powerpack for the industrial sector, or in the manufacture of photovoltaic panels and tiles.
Tesla currently displays a strong growth in turnover, little affected by the Covid-19 crisis. In addition, 2012, its turnover was multiplied by a factor of 50. Thus, the volumes of vehicles sold increased by + 50% between 2018 and 2019. Elon Musk, CEO of Tesla, said that the group has the potential to reach one million vehicles sold by mid-2020.
Positioned in a sector of the future
Tesla is positioned in a promising sector because it is considered to be of the future. The race for electric and autonomous vehicles has indeed been in full swing for several years and Tesla is one of the industry leaders in innovation. Each announcement of the development or release of a new vehicle from one or the other of these companies can thus have a direct effect on the direction of the trend in Tesla Motors stock.
A benchmark player
Tesla is now the benchmark for electric vehicle manufacturers. Its CEO, Elon Musk has just announced that Tesla is very close to the 'stage 5' of autonomous vehicles, the one that allows a car to move on a road without the intervention of a driver. He is confident that TSLA will be able to offer such functionality by the end of this year.
At the cutting edge of technology
Tesla is also a corporation very innovative. It will most certainly conceptualize and manufacture the batteries of tomorrow, particularly in the field of electricity storage, which has long remained complex to implement without the arrival of new technologies. And Tesla could bring all of these technologies to market in the near future.
Tesla Ratings, Forecasts and Estimates
Based on financial data from S&P Global Market Intelligence, the average Tesla share price target at the end of August 2020 is close to $ 500 (an increase of about 25% from the current price of $ 400 at the time of writing this guide).
The stock is currently trading more than 100 times its adjusted results for 2021, which is quite high but financial analysts justify this high valuation given the expected growth in business activity. Investment bank Canaccord has just raised its Tesla price target.
The Tesla share is in this fall 2020 is scrutinized by many investors, while the company is finally showing signs of profitability, after the disappointments of recent years.
Indeed, Tesla has long disappointed stock market investors but now the company seems to be on the path to sustainable profitability and better visibility in its sector of activity where it enjoys significant competitive advantages over other car manufacturers. like General Motors, Toyota or Renault.
For proof, just take a look at the graph below comparing the evolution of the Tesla share (in blue) to that of the American automotive giant General Motors (in red) over the past two years, which illustrates the enthusiasm of investors for TSLA.
TESLA vs General Motors share price
2 year chart – Source: TradingView
Conclusion: Is Now the Right Time to Buy Tesla Stock (TSLA)?
While many American companies saw their sales fall during the first quarter of 2020 due to Covid-19, Tesla, on the other hand, did not suffer too much from this difficult context.
The outlook for Tesla therefore remains solid and promising, which could make the stock an attractive stock to hold in 2020.
If you want to buy TSLA stock, your best bet is to look to a stock broker like eToro who offers to buy Tesla stock without having to pay commissions on either buying or selling.
frequently asked Questions
Does Tesla Pay A Dividend To Its Shareholders?
To date, Tesla has not paid a dividend to its shareholders and the company has no plans to do so in the near future, preferring to reinvest to grow its business more quickly.
How much has Tesla's price increased since its IPO?
Tesla's IPO took place in 2010 for a price of $ 17 per share, against a current price of nearly $ 450, a price that has increased by more than 25 times in ten years.
Which broker to choose to buy Tesla stock?
It is important to select a regulated broker who offers a trading platform that best meets your needs. Our preference goes to the eToro broker.
What is the main advantage of the eToro broker to buy Tesla shares?
The advantage of using a broker like eToro is that you don't pay commissions to buy and sell Tesla shares.
Warning: Every trading operation has a risk. We cannot offer any guarantee of profit. All content on our website is for informational purposes only and does not constitute a recommendation to buy or sell. This applies to assets as well as to products, services and other investments. The opinions communicated on this page do not constitute investment advice and independent financial advice should be sought where possible.