Tesla Inc. is headquartered in Palo Alto, California. Its trade symbol is TSLA. It is American clean energy and electric vehicle company.
The decade has offered Tesla (TSLA) investors a field day. They’ve had it better than any other stock. Tesla controls less than 5% of the global auto industry market share. But despite that, in the present decade, its market cap has gone over $590 billion. That puts it ahead of the game in the auto company industry globally.
Experts expressed fears that COVID-19 would negatively impact the giant auto industry. However, the pandemic did not hit the industry as the experts anticipated, which relieved Tesla investors.
Tesla earned a net income loss of about $862 million on a $24.5 billion revenue. Their net income went up the roof in 2020 as they recorded a positive $721 million net income. Their revenue also went up as they recorded $31.5 billion.
Investing Cash in TSLA
Have you ever considered how much money you might have made today if you had invested in Tesla Motors (NASDAQ: TSLA) ten years back? Or have you asked yourself, should I invest in Tesla?
Tesla motors purchased the Tesla factory based in Fremont, California, in 2010. It cost Tesla motors $42 million. On June 29 in the same year, Tesla launched its IPO or initial public offering on NASDAQ. The company gave 13.3 million shares of common stock to the public at a rate of $17.00 per share.
The company sold its shares at $4.92 per share the following year on March 8. In 2021, ten years later, Tesla sold its shares at $563 per share. Suppose you invested $1,000 in TSLA in 2011 on March 11. Today, your investment would have been $119,829.66. Total profit would be 118,829.66, and a yearly return of 61.26%.
They announced a stock split in August, and ever since then, split-adjusted stock values have soared by approximately 200 percent. Over the last few years, the entire share value has been gradually rising.
Tesla’s global market share hit an all-time peak of 499,550 units in 2020, representing a 35.8percentage increase compared to the previous year. After attaining a market cap of 86 billion USD on January 20, 2020, Tesla set a new milestone for the highest valuation of any American carmaker. Tesla’s stock rose to 743 percent in 2020 alone, reaching a high of $900 at the beginning of this year.back to menu ↑
How to Invest in Tesla: Factors to Consider Before Investing in Tesla
If you are an investor thinking of buying Tesla stock, there are a few factors to consider before getting started.back to menu ↑
Before buying shares with Tesla, it is vital to know what you are getting into. When you purchase a stock, you are buying a fraction of an already running business.
Start by doing a good amount of research on Tesla. You can also view ratings by analysts and any other important information about the company via your brokerage account. Another source you can consider is a financial information web page.
If, after doing your background research, you find Tesla interesting, you can consider another aspect.back to menu ↑
Your Bundle of Investments
It’s okay if you do not have a basket of investments. However, it is a good practice. Therefore you should have an investment portfolio. The most efficient way to find your way is investing in index or mutual funds instead of individual stocks. That’s because funds group equities together to reduce the risk of losing your invested capital if one firm fails.
However, consider how Tesla is likely to fit in that portfolio if you have yourself a list of investments. Take into consideration how exposed you are to stocks. The precise asset allocation comes down to personal preference, timetable, and risk tolerance, but a solid portfolio contains a good mix of equities and bonds.back to menu ↑
The Amount You Are Willing To Invest in Tesla
The cash you are willing to invest depends on the amount you need to invest. However, it would be best to consider how much of your investment you would like to attach to Tesla’s business outcomes. It would help if you also considered the far you have advanced toward other financial objectives.
An emergency fund should be at the top of most people’s to-do lists. Experts recommend setting up 3 to 6 months’ value of spending. However, even $500 to $1,000 is a decent starting point. Your emergency money should be invested in a high-yield savings account that is both available and secure, rather than a single stock like Tesla.
Another point of consideration is the time you expect to get the money you are investing in Tesla. Stock market investments have a 5-year plus time frame. Therefore, you should consider this investment a long-time investment. So be sure that the money you wish to invest in one that you will not need soon.
Then there’s your budget. If you do not have enough money to purchase an entire share, you can go for a fractional share. That is only a sliver of a share. Today, individual stock fractional shares are available through some brokers.
More on Fractional Shares
Instead of spending, say, $700 on a single Tesla stock share, you can spend as little as $1 to $100.
Fractional shares allow you to use as little and as much as you wish or can afford as you continue building a diverse portfolio. With $100, for instance, fractional shares enable you to invest in hundreds of different stocks.back to menu ↑
Let’s Wrap It Up
Tesla (TSLA) is a pioneer in electric vehicles, ultrasonic safety features, autopiloting, and zero-emission production. Investing in Tesla today and reaping the benefits tomorrow is a fantastic decision.back to menu ↑