How to buy shares in Tesla

Tesla is known for their electric cars, as well as their eccentric CEO Elon Musk. It is also one of the most popular shares on the NASDAQ. We look at the company’s global appeal and how you can purchase Tesla shares of your own.

What is Tesla?

American company Tesla was founded in 2003 by a group of engineers who wanted to create electric vehicles that are better, quicker and more fun to drive than gasoline cars. Since then, the company has grown significantly and is now one of the largest companies on the planet (by market capitalisation). However, the company is more than a car manufacturer; they also design and produce battery energy storage from home to grid-scale, solar panels and solar roof tiles, and other related products and services.

How have Tesla stocks performed?

Tesla made it’s stock market debut in 2010 and gained an impressive 2207% in its first 10 years. However, Tesla’s share price skyrocketed at the start of 2020 and in the space of less than two years the share price gained a further 1043%. In late August 2022, the company decided to do a 3-for-1 stock split, taking its share price from around US$890 to more affordable US$300.

How to buy Tesla shares in Australia

1. Compare share trading platforms

Tesla trades on the NASDAQ stock exchange under the stock ticker TSLA. To access Tesla shares you’ll need to find a broker that allows you to trade on the NASDAQ. There are several brokers in Australia that provide access to international shares such as Telsa. When comparing online share trading brokers you should consider the fees, functions and whether the platform is easy to use.

Compare International Share Trading

2. Open and fund your brokerage account

Once you have decided on a platform you can open your account. Typically, you will need at least two forms of identification and a bank account to link your brokerage account with. When your account is set up you will need to transfer some money into your brokerage account so you can buy TSLA shares.

3. Evaluate TSLA’s financial health

It is always a good idea to seriously consider a company before investing in it. There are a number of ways to analyse a stock, but a good place to start is to have a clear idea of what the company does, how they make money, how they intend to grow the company and what their current financial position is.

4. Decide when to buy TSLA stocks

Timing the market is notoriously difficult, but one thing to keep in mind is the mantra: ‘buy low, sell high’. You may not be able to tell which direction a stock may go, but by looking at some historical data you may get an idea of whether a stock is currently trading low or high.

5. Determine how much you want to invest

Nothing is ever guaranteed, especially on the stock market. Even if you thoroughly analyse a stock and attempt to buy when prices are low, you still might make a loss. So, another safety measure you can take is to only invest what you can comfortably afford to lose.

6. Buy your TSLA shares

If you are pushing ahead and ready to purchase TSLA shares it should be fairly straightforward. Log into your investment platform, select the shares that you wish to buy and, either how many shares you’d like or the amount you wish to spend. Keep in mind you will need enough funds in your brokerage account to buy the shares and cover the brokerage fees.

You can choose to buy the shares at market price or put in a limit order. A limit order is where you can dictate the price you wish to buy at, and if it reaches that price in the desired timeframe, the shares will be bought on your behalf.

7. Monitor your investment overtime

Depending on how long you intend to invest for you may want to monitor your investment regularly. However, if you have a long-term outlook and don’t intend to sell your shares for a number of years, you may want to block out all the noise and ignore the market movements until closer to when you would be looking to sell. Often, taking the emotions out of investing can help you avoid making costly mistakes.

How to sell TSLA shares

When it comes to selling shares, it is much the same as buying. Select the amount you wish to sell and if you sell during market time you will receive the market price. Outside of this time you can set a limit order and decide the price you wish to sell at.

Investing in Tesla with an ETF

If your broker doesn’t currently include international shares as part of it’s offering another option is to look at ASX ETFs that invest in Tesla as part of their portfolio, some you may want to explore are: Vanguard MSCI Index International Shares ETF (VGS) and BetaShares NASDAQ 100 ETF (NDQ). These ETFs and others like it should be available through all Australian brokers. It’s a good idea when looking at ETFs to check what makes up the portfolio and how they are weighted.

Related article: How to buy US stocks in Australia

Should I invest in international shares?

There are plenty of benefits to investing overseas, including access to some of the largest companies in the world, like Tesla, and the ability to diversify your portfolio. Another advantage is the cyclical patterns of overseas markets that, at times, move in the opposite direction of the Aussie share market which can help smooth out your returns. There are a few downsides to be aware of as well, such as the currency exchange fees, the different rules and regulations, Australian tax laws, and possible economic and political threats.

Related article: Risks and benefits of investing overseas.

If you are thinking of investing in Tesla you should first thoroughly research the company to ensure that it aligns with your investment goals and strategy. Also, bear in mind that past performance is not an indicator of future performance.

Cover image: Photosite/Shutterstock