How To Buy Tesla Stocks In 2022
To get the ball rolling, we will show you how to invest in Tesla stock with the broker of your choice. Follow this simple guide to get started:
- Step 1 Open a Trading Account: Users can head over to the website of their preferred broker and begin the registration process. Enter your personal details and create a username and password.
- Step 2 Upload ID: Get your newly created account verified instantly by uploading a copy of your ID. Choose from a passport, state ID, or drivers license. Users may also be required to provide a proof of address document, such as utility bill or bank statement.
- Step 3 Deposit Funds: Users can deposit funds by choosing a payment method which may include e-wallets, credit/debit cards, and ACH.
- Step 4 Buy Tesla Stock: Users can search for Tesla stock on the search bar of their platform and begin the open order process. Enter the amount you wish to invest and confirm the transaction.
Your capital is at risk. 83.45% of retail investor accounts lose money when trading CFDs with this provider.
Checkup On Tesla Stock
According to the IBD Stock Checkup tool, Tesla stock has a healthy IBD Composite Rating of 96 out of 99. When choosing growth stocks for the biggest potential gains, based on the CAN SLIM investment paradigm, focus on those with a Composite Rating of 90 or higher.
The stock also has a Relative Strength Rating of 92 out of 99. The rating means that Tesla stock has outperformed 82% of all stocks in the IBD database over the past 12 months. Ideally, look for stocks with an RS rating of 80 or higher.
Its Accumulation/Distribution Rating is B+. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. A grade of A signals heavy institutional buying. The lowest rating of E means heavy selling. Think of the C grade as neutral.
In the stock market, timing is critical. So when you’re looking for stocks to buy or sell, it’s important to do the fundamental and technical analysis that identifies lower-risk entry points that also offer solid potential rewards.
Automotive Revenue And Profit Are Climbing Fast
Tesla’s automotive revenue increased at a rapid pace, reaching $16.9 billion in the first quarter — an 87% year-over-year increase. The increase was due to the company’s stellar vehicle production and delivery growth.
In addition to its sales jump, the company is earning more profit from its vehicles. Automotive gross profit spiked 132% in the first quarter to $5.5 billion.
The result was a record non-GAAP net income for the EV company, surpassing $1 billion for the first time ever in a quarter.
Also Check: Electric Car Charging Stations Washington State
Tesla Stock Price Prediction For 2026
It is very likely that Tesla stock will reach the $2,000 mark before 2026. Even if the value of the shares doesnt grow at the projected rate, it should still be able to cross that mark before the end of the first quarter of the year.
While being cautious, a more realistic price target for Tesla stock for 2026 should be $2,300. A favourable market condition can see it beat that target.
Tesla Might Be Headed For A Breakdown
While there’s no denying that Tesla’s naysayers have been decisively wrong up to this point , there appear to be more lingering headwinds than catalysts for Tesla at its current market cap of $939 billion.
To begin with, the company is being treated as if it’s not cyclical and will somehow escape the supply chain challenges currently afflicting other automakers. If the U.S. and global economies continue to weaken on the heels of historically high inflation, consumers are almost certain to pare back their spending. That means even next-generation automakers like Tesla could see reduced demand for EVs.
To build on this point, Tesla’s shares ended this past week at a nosebleed multiple of 56 times Wall Street’s forecast earnings per share in 2023. Even taking into account that Tesla has made a habit of handily surpassing Wall Street’s relatively low-bar EPS forecast, we’re talking about a company that produces a commoditized product in an industry that’s known for trading at a single-digit forward price-to-earnings ratio. Although Tesla does generate revenue from its energy storage and solar installation operations, the vast majority of its sales are tied to cyclical-driven EVs.
Although patience has paid off handsomely for long-term investors in Tesla, this top performer looks to be headed for a breakdown.
Read Also: Childrens Electric Cars 24 Volt
How Much Is Tesla Stock Per Share
As of writing, Tesla is trading for just over $1,000 per share.
It is vital to always invest responsibly in awareness of all risks involved. Markets can be extremely volatile, so you should conduct extensive research before investing. Our site provides regular updates and diligently verifies all platforms it recommends, but you should form your own opinion and invest only what you can afford to lose. There is never any guarantee of a return on investment.
This article was written for Business 2 Community by Kane Pepi.
Should I Short The Tesla Stock
So what are our thoughts on this? Should you short Tesla stock?
If youre a beginner investor, probably not.
If you really understand what youre doing, you should look into the information and decide if its right for you.
Because Tesla has such a huge valuation, one that smashes every other car company, its one of the most shorted stocks on the market. But Tesla isnt just a car company. Theyve stated the next goals for Tesla are with solar roofs and batteries, expanding electric vehicles beyond just cars, and developing self-driving capability.
Also Check: All Electric Cars For Sale
What’s Happening With The Tesla Shareholder Lawsuit About Solar City
On July 12â13, 2021, Musk testified in a lawsuit brought by Tesla shareholders. The plaintiffs alleged that he used Tesla’s 2016 acquisition of SolarCity to bail out SolarCity while chairing both companiesâ boards. Closing arguments in the case took place in January 2022, with lawyers for the plaintiffs arguing Musk should return the Tesla shares he received for his SolarCity stock, valued as of January 2022 at $13 billion. A ruling in the case remained pending as of April 21, 2022.
Stock Market Last Week
The stock market suffered sharp losses in the past week, reversing hard after solid gains on Monday.
The Dow Jones Industrial Average tumbled 4.1% in last week’s stock market trading. The S& P 500 index sank 4.8%. The Nasdaq composite tumbled 5.5%. The small-cap Russell 2000 gave up 4.5%.
The 10-year Treasury yield ran up 13 basis points to 3.45%, the seventh straight weekly gain. At one point Friday, the 10-year yield hit 3.483%, exactly matching the 11-year high set on June 14.
U.S. crude oil futures fell 1.9% to $85.11 a barrel last week, third straight weekly decline. Natural gas prices sank 2.7%, but after a wild week of gains and losses.
Read Also: Tesla’s Solar Roof Tiles
Buy Now Or Wait For The Split
Tesla last split its shares in 2020, recently enough to provide insight into whether investors should buy the stock now or wait until after the split. A pattern has emerged in recent years that seems particularly pronounced with well-known and highly followed stocks, as noted by my friend and Motley Fool colleague Dan Caplinger:
- From the time of the announcement until split-adjusted trading began, the stock price tended to surge, outpacing the overall market.
- Immediately following and several days after the stock split there could be additional stock price gains.
- Shortly after the split, the stock tended to continue the trajectory it was on before the announcement of the stock split.
Tesla varied somewhat from that pattern. From the time of its stock split announcement to its completion, shares surged 81%. However, during the eight days following the split, Tesla shares slumped more than 30%, before rebounding and beginning a relentless climb higher.
In fact, from the date of the stock split announcement in early August through the end of 2020 — a period of about five months — Tesla shares gained nearly 157% overall. It wasn’t all wine and roses, however. Investor enthusiasm didn’t insulate the stock from the occasional downturn, as shares have fallen by 25% or more on five separate occasions since the stock split was announced. The lesson here is that investor psychology alone isn’t enough to propel a stock higher over the long term.
Image source: Getty Images.
Features Of Tesla Stock
Now that we have covered the technicals, in this section we take a much closer look at fundamental reasons and main features of Tesla stock.
Strong Quarterly Earnings Report
Teslas most recent quarterly earnings report provided some exceptionally strong results. First and foremost, revenues were up 64% year-on-year, with net income growing by more than 740%.
Net profit margins increased by 421%, while operating income grew by 354%. The only chink in the armor with Teslas most results is that based on a year-on-year basis, the figures are somewhat skewed.
After all, production levels were reduced in 2021 as per COVID-related restrictions. Nevertheless, in the grander scheme of things, Teslas most recent report impressed the markets.
Vehicle Delivery Figures Continue to Rise
Another metric to look at before you buy Tesla stock is with respect to the firms vehicle delivery numbers.
This essentially takes into account two key figures the number of vehicle orders Tesla is getting from customers and at what rate the firm is able to meet this demand.
In 2021, Tesla reported an impressive 1 million vehicle deliveries. To put this into perspective, this stood at just under 368,000 and 500,000 in 2019 and 2020 respectively.
Crucially, market analysts predict that in 2022 Tesla could double its vehicle delivery figures to 2 million. In order for Tesla to meet its goals, the firm is opening new production plants in Texas and Germany.
Read Also: Electric Car Charging Voltage And Current
Can Investing In Tesla Stock Make Me Rich
The short answer is yes, Investing in Tesla stock can make you rich. But you need to realize that there is always some level of uncertainty in stock investing. Though the stock is looking very promising, it can take a while to return the sort of profit some investors are looking out for. How much you invest will also determine how much you can get. So, how much can you invest? And how long can you wait?
So Should You Buy Tesla
If you’re confident Tesla can more than 10x its annual deliveries, more than 10x its annual net income, and figure out its energy and FSD businesses, the stock could be a good buy here. I think that is a tall task and adds a ton of risk to an investment in Tesla at these prices. With hundreds of other stocks out there for investors to buy, I think it is smart to put your money elsewhere and avoid Tesla stock right now.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fools board of directors. Brett Schafer has no position in any of the stocks mentioned. The Motley Fool owns and recommends Alphabet and Tesla. The Motley Fool recommends Alphabet . The Motley Fool has a disclosure policy.
Also Check: Why Is Tesla Insurance So High
Set A Budget For Your Tesla Stock Purchase
This is partially dictated by how much money you have to invest. But you should also think about how much of your portfolio you want to tie to Teslas business performance, and where you stand in your progress toward other financial goals.
High on most lists should be an emergency fund. Experts suggest aiming for three-to-six months’ worth of expenses, though even $500 to $1,000 is a good start. Your emergency fund should go not into an individual stock like Tesla, but into a high-yield savings account where it is safe and accessible.
It’s wise to also consider when you’ll need the money you plan to invest in Tesla generally speaking, stock market investments should have a time frame of five years or more, meaning you should be thinking of Tesla as a long-term investment, and only investing money you won’t need in the near future.
Finally, there’s your budget. What if you dont have enough to buy an entire share of Tesla? You may be able to purchase a fractional share essentially a piece of a share. Several brokers now offer fractional shares of individual stocks.
Software Updates And Upgrades
Tesla vehicles’ software is regularly updated over-the-air when new software and firmware versions are released. This allows the cars to remain up to date and improve after purchase. Tesla also offers the option to unlock features in the car through over-the-air software upgrades after purchase. Available upgrades include basic Autopilot, Full Self Driving, acceleration boost , and rear-heated seats .
Also Check: Electric Car Tax Credit California
What Stands Out: Cutting
Slide into a Tesla and you’ll find a refreshingly uncluttered interior free of conventional buttons, vents, and gauges. The cabin’s sleek design and understated wood trim more evoke an Apple store than an automobile.
This minimalist look is made possible by a large touchscreen that controls practically all important vehicle functions aside from stopping, going, and turning. This command center contains the door locks, A/C settings, speedometer, and navigation system. It’s also stuffed with outside-the-box features like games, a digital whoopee cushion, and Netflix, which can help owners pass the time while charging.
The display is super responsive to taps and swipes and features crisp graphics. Plus, Tesla regularly adds new capabilities through software updates, making the Model Y’s cockpit a tech nerd’s paradise.
There’s plenty of room to stretch out in both the front and rear seats thanks to a totally flat floor and tall glass roof. And the Model Y provides tons of cargo space, including a generous trunk up front and an under-floor storage area in back, both of which you won’t find in every EV.
Despite not being the Performance model, the Model Y I sampled accelerated stunningly quickly, darting forward with every nudge of the accelerator pedal in the same way that other high-powered EVs do. And it handled more like a sports car than a lumbering SUV, offering quick, precise steering that let me point exactly where I wanted to go.
What Does It Mean To Short The Tesla Stock
Short selling is a way to make a profit off a stock losing value.
It is a high risk, but high reward method, and really isnt for beginner investors.
In the simplest terms, an investor borrows stock shares and sells them on the market at fair market value. When its time to buy those borrowed shares, the investor is betting the stock will have gone down in price, meaning they can buy them back at a lower price, resulting in a profit.
An example: How to short Tesla shares
Shorting is a bit tough to understand, so heres some real numbers around how to short Tesla shares:
- Tesla is trading for $860 right now. Lets say you think its really only worth $700 a share and the price will soon go down.
- So, you borrow the shares and sell them to someone else for $860. You pocket that money.
- You eventually need to buy the shares yourself since you cant just borrow them forever . So, lets say a month goes by and the stock is now worth just $760. You can choose to buy those shares that you were borrowing and complete the entire transaction.
- You just earned yourself $100 per share!
Seems easy, but keep in mind that a stock can go up in price theoretically forever, and the investor would have to buy them back at the higher price. In fact, there have been many investors that have shorted Telsa stock and lost time and time again!
You May Like: Tesla Model 3 Spacex Edition
Should You Invest In Tesla Right Now
Many investors may feel they have missed the boat with Tesla . Tesla, and the EV sector in general, is entering a new phase, and the company is positioning itself to continue to lead the way forward. While returns over the coming years may not match prior results, Tesla has a lot of irons in the fire.
Want to be in on the steady expansion of electrified cars? These three companies look like fantastic bets right now.
A Huge Addressable Market
It’s also worth noting that even though Tesla has already achieved a significant annual revenue level, it could be argued that the automaker is still just getting started. Tesla management has always viewed the market for gas vehicles as its addressable market — not the niche market for electric and hybrid vehicles. And given the way essentially every major auto manufacturer is now leaning into electric vehicles with heavy investments, this view of Tesla’s addressable market is looking truer than ever.
Just how big is the market for cars? In 2022 — a year that new car sales have been hampered by global supply chain challenges — global vehicle sales are estimated to be about 80.8 million, according to estimates by J.D. Power. Showing just how much room Tesla has to grow, the company’s 2021 unit deliveries were under one million units.
Better yet, Tesla CEO Elon Musk said in the company’s most recent annual shareholder meeting that when new car makers ramp up their advertising for their electric vehicles, it actually helps demand for Tesla’s vehicles. Electric vehicles are still so early in their adoption that lack of awareness may be the primary factor holding sales back.
And then, of course, there’s the potential for Tesla’s fast-growing energy business. Musk has said that he thinks its energy business could eventually rival its automotive business.
Recommended Reading: Used Tesla Model 3 Performance For Sale