Tesla Inc. (NASDAQ TSLA) is a good choice if you want to invest in solar panels or electric vehicles, or add an auto industry heavyweight into your financial portfolio.
Tesla has been loved by eco-conscious consumers around the world, from maverick millennials all the way to eco-friendly boomers, and everything in between. Tesla can help reduce global warming and carbon footprints. It is also responsible for delivering solar-powered homes and other energy solutions to those who are looking for clean, efficient and sustainable energy.
Are you looking to buy Tesla stock shares? Learn more about Tesla, the stock’s performance and how you can add shares to a portfolio. There are dividends to be had by adding a mainstream, popular, environmentally-friendly brand to your portfolio.
Tesla Inc. History
- 2003 Started and Managed by Marc Tarpenning and Martin Eberhard
- 2008 – Tesla Roadster brought to market
- 2010: Was made public by an initial public offering (IPO), $17 per share
- 2016 – Acquired SolarCity panel manufacturer SolarCity
- 2020 – Tesla Model 3 is named UK Car of the Year 2020. The stock received a 5-1 split in August and traded at an unprecedented $695 per shares in December.
- 2021Tesla reported a $0.80 EPS and $10.74 billion in revenues. This was a new record high.
- 2022: Tesla stock value fluctuated between about $270 to $320 before plummeting to $120 at year’s end.
- 2023 Although Tesla stock is starting to recover in 2023 the impact of Elon Musk’s somewhat turbulent foray in Twitter on public sentiment about the firm has been significant.
How to Buy Tesla Stock
Tesla trades under the ticker symbol TSLA on the NASDAQ exchange. Tesla doesn’t offer direct stock purchases unless you work for Tesla. A broker is required to help you buy Tesla stock.
There are many other options. You have several options. You can either short-sell Tesla stock or sell or hold your Tesla stock based on its performance. Or, you can explore Tesla stock options.
You will be able to purchase TSLshares if you don’t have a brokerage account. A good rule of thumb is to not invest more money that you can afford.
Step 1: Shop through your brokerage
Once your brokerage account is set up, you will be able to either purchase a Tesla stock at its current price or you can buy a call or put option. You can keep the stock until you sell or if you buy it at the current market price.
If you purchase a call or put option it can only be traded for a certain time. If you’re buying a call option, it is important that the stock value of Tesla rises before you can trade it.
Step 2: Decide on a strike amount.
A strike price refers to the price at which you are willing and able to pay for a stock option that is valued at a premium. You could, for example, set a strike of $650 to buy put option if Tesla stock has a current market value of $664.
You could also sell your put options at the time if Tesla stock price falls below $650. This will allow you to turn a profit. You could make $10 per put if Tesla stock falls to $640. This would be less than the premium.
Step 3: Choose an expiration date.
Every option, put or call, has an expiration. The options that the investor has purchased become invalid after expiration. The expiration date may be set for anywhere between one week and two months, or even several decades.
As it gives you the chance to trade your options, be wise when setting an expiration. You will be charged more for options if you delay setting an expiration time.
Step 4: Decide how many agreements you would like.
Each stock call or put options you buy of a stock includes a 100-share contract. You decide how many contracts to buy, depending on what your budget is and how you feel regarding a company’s prospects. To help you make the right decision, you can consult a broker and a financial advisor.
Step 5: Watch stock prices.
Is Tesla stock overvalued? While it can sometimes be, the stock may still have enough value to make it worth your while. People often wonder if Tesla stock should go. They don’t know if it can rise further or if it will be outsold by other EV makers.
According to the NASDAQ., Tesla stock has a 12-month average target price of $455. The high estimate for Tesla stock is $788, and the low estimate for Tesla stock at $60. Based on Tesla’s recent performance, you should allow yourself at least one week to benefit from the stock options. Keep an eye on Tesla’s day-today valuations while you own Tesla stocks.
Cons of buying Tesla Stock
Remember that Tesla stock stock discussions are not always positive. Tesla could have some issues, including its Wolfsburg factory planned and reliability. Elon Musk’s public image may also be an issue.
- Tesla’s notorious CEO Elon Musk has a reputation as being eccentric. Musk’s erratic tweets and risky relationships have had a direct impact upon Tesla’s stock market value. It’s not surprising that Musk’s actions are being monitored by a board.
- Musk’s online profile serves as an advertisement for other products, like SpaceX, cryptocurrencies and anything else that might interest him.
- Tesla’s daily stock price fluctuated to say the least.
- Tesla shares do not pay dividends.
- The Tesla vehicles have come under fire for being unreliable, unsafe, and poorly constructed. Although it can be difficult to discern the technical complexities of modern vehicles, and the technology behind them, stock prices tends to fluctuate with the news cycle.
- Elon Musk seems thin. News reports from early 2023 state that he’s been sleeping at Twitter Headquarters, selling merchandise from the office, etc.
There are pros to buying Tesla stock
- Tesla stock is highly volatile, giving investors the opportunity to invest without burning a hole in your pocket.
- CNBC reported that Elon Musk has seen his net worth increase by $140Billion due to the 650% growth in TSLA stock. You would have made $63,300 profit if your $1,700 investment had been on 100 shares of TSLA Stock during the initial public offering in 2010.
- Tesla is the first automotive company to go public since Ford in 1956. Tesla has a market capitalization in excess of $627.29 Billion as of March 2020. That’s more than General Motors combined.
- Tesla is always at the forefront of innovation, from self-driving vehicles to economic and sustainable energy reserves for homes, to self-driving cars.
- Tesla shipped more than 139,000 electric cars in the third quarter 2020. Although plans to open an assembly plant in Germany were delayed, Tesla now has a brand new manufacturing facility in Shanghai. This plant is ready for growth in 2021.
- Tesla has managed to sell a record number electrical vehicles despite a global pandemic in 2020 and an economic recession.
What is Tesla Stock’s Performance?
Tesla’s stock has done exceptionally well in the last decade. It has been one the best-performing stocks of recent history. After years of range trading Tesla’s stock price shot up after 2020 began. From less than $100 per Share, it rose tenfold to its current price, more than $1,000 per Share, as you will see in the price chart.
Why should you invest in automakers
Tesla today finds itself in a very exclusive group. Tesla stock, despite its short operating history, is the world’s most valuable automobilemaker. It has a market cap of almost $633 billion. Tesla is worth twice as much as Toyota (NYSE TM) at the moment.
No one can accurately predict the future. However, Tesla stock could see a dramatic rise if consumer behavior continues on its implied trajectory. The first is that younger generations, millennials and Generation Z, place more importance on social responsibility. It is easy to see that consumers today will also be more concerned about the environment.
There is evidence that everyone, regardless of their age, recognizes the importance sustainability. McKinsey & Company’s July 2020 survey found that the COVID-19 pandemic has caused a large majority of Europeans to believe businesses should put more effort into reducing pollution. 57% of respondents to the McKinsey & Company survey said they had made significant lifestyle changes to lower their carbon footprint.
This doesn’t mean that the U.S. has fallen behind in this area. Pew Research Center reports that the majority of Americans support measures to combat climate change. This is how Tesla stock and its EVs caught the public’s interest. Customers can now drive these stylish machines and have their cake and eat too.
It is not surprising that legacy automakers have embraced electric mobility and are eager to develop their own EVs in order to compete with Tesla. Although TSLA supporters remain optimistic that the underlying business can fend off any potential rivals in the future, shareholders should be aware of the challenges facing the next phase.
These are the key considerations:
- Ubiquity & Its Liability: While Tesla’s pioneering ethos, innovative approach, and EVs are almost universal, it can also become a liability. For example, Tesla’s first buyers felt special. They were essentially personal mobility pioneers. The company will introduce an “identity” to EVs as it expands its brand and offers more options, particularly the affordable Model 3. This background provides an ideal opportunity for large-name rivals such as BMW or Mercedes-Benz to get involved and bring some much-needed diversity.
- Economics matter: Many evidence shows that worldwide environmental advocacy groups have been successful in communicating the importance and benefits of sustainability to customers. The more sustainable product will be preferred by consumers up to a point. McKinsey’s separate survey of U.S. shoppers revealed that other attributes and price were more important than sustainability. Despite Tesla’s efforts to offer affordable EVs and its cheapest models being extremely expensive for the average household, This situation opens the door to lower-cost vehicles.
- Legacy relevance Although Tesla stock rose dramatically upon the mainstreaming EVs, it is important not to mistakenly think the legacy automakers have lost their value. In fact, it could take decades for the electric-powered counterparts to replace their fossil fuel-fueled counterparts. According to Brookings Institution, modern societies have difficulty quitting “dirty energy” as fossil fuels are extremely dense in energy. It’s not uncommon for modern cars to travel 30 mph on one gallon of gasoline. Unfortunately, electric vehicle battery have a lower energy density.
- Infrastructure dependency Unlike electric vehicles, there is an infrastructure for combustion-powered cars. Both governments and corporations will need to invest in charging station infrastructure to convince people to switch. This rollout is essential if electric automakers are to surpass traditional ones. Keep in mind that only 63% U.S. households have a carport or garage, which limits the number of customers who can charge their vehicles at home.
- Innovation has universal appeal: The main draw to Tesla stock is the fact that the underlying business continues to invest millions in research, development and manufacturing vehicles that can compete with their combustion counterparts in terms of features, conveniences, and, most importantly, range. But, the legacy automakers continue to innovate. Today’s combustion vehicles are significantly more efficient than ever, while reducing their emissions.
Tesla Stock Forecast
Tesla Inc., NASDAQ: TSLA is the 11th-largest company by market capitalization. This stock has demonstrated that it can return high returns in a short time. Tesla’s stock price is in question, given the turbulent market.
While current economic conditions are not good, experts still believe that Tesla’s stock will be a success. Some experts see a grim outlook for the stock of this electric vehicle manufacturer (EVM).
Stocks can move in any direction due to market uncertainty. Experts have offered price predictions and suggestions for Tesla’s stock.
Current Tesla Broker Ratings
Based on a scale of 1-5, the average brokerage recommendation from 27 firms was 2.24.
Eleven brokers gave Tesla a strong Buy rating and two others recommended it as a Stock to Buy. Only two brokers recommended the stock for strong selling, and twelve recommended holding it.
The recommendation for strong buy is at 40.7%. A buy position accounts for 7%.
Comparing the recommendations of three months ago with current recommendations reveals that 12 brokerage companies previously recommended a strong-buy, while only 11 firms are currently in that position.
Two firms hold this view, and the buy recommendation has remained unchanged from three months ago.
Nine brokers recommended holding a position three months ago. Twelve other firms are currently expressing the same sentiment.
Tesla stock is being recommended as a strong buy by two firms, whereas it was recommended by three firms three months back.
The ABR for three months was 2.21.
The 13 brokerage firms also recommended Tesla’s stock. Nine firms rate it currently as well as they did a few months back — six recommended it as strong buy, and three recommended that it be held.
The Tesla stock had been rated by two brokerages,. However, one firm recommends holding the stock and the other suggests a strong purchase.
Oppenheimer Holdings recommended Tesla’s stock previously as a strong purchase and has now downgraded the stock to hold. Tudor, Pickering, Holt & Co. echoed the sentiment.
Tesla Stock Predictions 2025
Tesla Inc. NASDAQ: TSLA has been a very popular stock with investors. Elon Musk’s rise as CEO has only made the stock more attractive to investors. The stock’s prospects for 2022 are not great, as the electric vehicle (EV), industry giant is facing headwinds like the Federal Reserve rate rises, China’s zero-COVID policies, and Musk’s involvement and acquisition of Twitter.
Twitter’s takeover was a major problem in recent months. Investors hope the stock will perform better in the years ahead.
What can investors look forward to with Musk expanding into new ventures and selling a portion his Tesla shares this past year?
Where will Tesla Stock be in 2025
Musk has been under intense scrutiny for his apparent inattention to Tesla. To avoid further declines, strong leadership is vital. Where could Tesla stock be by 2025?
Looking ahead, the stock is still facing constant external headwinds. For automakers, supply chain problems persist. Inflation historically high is expected to decrease customer spending on household products and vehicles.
The bears have already taken control in 2022 and Tesla is likely to face more difficulties in the near future. EV manufacturers continue to face increased competition, though Tesla is still the market leader in the U.S.
With China’s supply chains issues, global demand remains a concern for the company. Changes in the current macro environment are necessary if Tesla is to maintain its rapid growth and reach its former highs.
Tesla’s stock price growth potential over the next year has been doubted by investors. But, there are still many problems that need to be addressed and future earnings are dependent on the global economic environment.
Weak economic conditions will likely have an impact on EV sales. Higher interest rates and a falling economy will not last forever. Tesla could take actions to stimulate demand for its products.
Many expect further price cuts and discounts from Tesla in 2023. This action will reduce profit but it will likely drive Tesla’s sales. It could encourage EV adoption and push the stock higher. Tesla is one of the most profitable EV producers due to its significant sales volumes.
Even with short-term headwinds and long-term growth still in sight, Musk’s commitment to not sell more Tesla stock up until 2025 should be a factor that helps stabilize the share price. But whether investors believe him is another matter.
It is possible to ask whether Tesla has been overvalued even after its substantial decline.
Morgan Stanley analyst Adam Jonas points out that Tesla’s market value has dropped by $600billion in three months. Tesla is seen as the “ambassador for EVs” and the substantial valuation drop “raises doubts about investment returns” in the sector.
Jonas believes that the price reductions in Tesla will continue in Europe and the U.S. However, the analyst, a Tesla fan, considers the substantial pullback in shares to be a buying opportunity.
Tesla shares may not show signs of recovery for several months. It is also possible that they will continue to rise in the future, but it is doubtful, considering these concerns.
