Tesla has always been praised for its high brand loyalty and best customer service. The fanbase of the company goes beyond its fleet of electric vehicles- there’s another group of devotees to Tesla’s stock with its high-profile CEO, Elon Musk.
If you admire this company and are willing to invest in the stock, then you must learn how to invest in Tesla. There’s something that Tesla has been equipped with recently that has ballooned the stock rates after Dec 2019. Tesla stocks went from $44 of the lowest 52 weeks rate to $502 to another 52-week period. But looking at these rapid elevations, some investors are still backing their investments despite witnessing the flight. Let’s explore further on how to invest in Tesla.
An overview- Tesla’s shares and IPO
Undoubtedly, Tesla is recognized for its loyalty and high brand not only to the owners of its vehicles but beyond. In 2010, California-based auto giant Tesla launched an initial public offering (IPO) when the company began to trade its share at $17. After that, Tesla’s stock price only multiplied. Tesla’s share exceeds $2,200 value in 2020 and in August of the same year, the company announced a 5 for 1 split, the first-ever split for its stock. And that turned the stock price down to $400. But the stock price doubled within 6 months.
Concerning the fluctuation in stock prices, whether you think that Tesla is a fair investment, these steps will let you know how to invest in Tesla or even any other stock market so you can make the most out of your investments.
How to invest in Tesla Stock?
Step 1: Make a brokerage account
To begin the process, first, you have to make a brokerage account. Vanguard, Fidelity, Schwab, Robinhood, and Webull are some of the good options if you are seeing no or low-cost fee structures. To sign up for a brokerage account at these platforms, you can visit their websites or download their mobile applications.
There’s no need to put yourself in the hassle of opening another account, you can add your retirement account while putting in the information and begin with your investments. Probably your employer has already set up a 401K or IRA for the purpose, seeking information for it. Moreover, a college 529 saving account can also be a great option while you plan to invest in Tesla.
It is also essential while making your investments that you read every information your brokerage account provider provides you through the app or website. There could be multiple things that you need to know before making your investments in stocks. The information could range from promotions to fee structures, monthly plans, and more.
Step 2: Attach your bank account
Now you have made your brokerage account, you need to wait until your account gets approved and you start the process of investing actively. Once the account is approved, you will need to attach your bank account (either retirement or college savings) with the brokerage account to transfer your money back and forth between your accounts. To attach your bank account with your brokerage account you have some ways to accomplish it but it depends on the broker which one they accept.
Steps to attach bank accounts to your brokerage accounts:
- For Charles Schwab brokerage account, log in to TD Ameritrade account, click on ‘My Account’, go for ‘deposit and transfer’ from the menu and click on ‘Account/Bank Set-up’. Here, you will see the option ‘Add a new setup’ under the type of setup. Select the type and attach your details.
- For Vanguard, go to profile and account settings in “My another 52 weeks account menu, select bank information under Banking and Money Movement section and choose ‘Add a new bank’ and proceed by filling up the details.
- For Robinhood, after logging in to your Robinhood account, at the bottom right corner, click on Account’ icon, tap transfer then linked account then go to add a new account. Choose from the listed bank options and enter the bank details you like to link.
It also depends on the type of account, individual brokerage account, retirement, or saving account that distinguishes your investment approach. It is recommended to set up a monthly budget to invest every month.
Step 3: Order your first purchase
After you have made an account and attached your bank with your brokerage account to make deposits, it’s high time that you start using your deposits by placing orders. Give thorough research about the share prices of leading companies either Tesla’s or any other and figure out how many shares you will need to buy and at what price. You may come across two options to make your first order, limit order, Account or market order. Experts suggest always going for a limit order.
This is because in the limit order, a limited price is set which is said to be the highest that a buyer will pay or could be the lowest that a seller would ever want to receive. In a limit order, a price at or lower is acceptable by the buyer and the price at or higher than the limit is accepted by the seller. If your quoted price or the stock hits that limit during the trading day, your order will be locked. If this does not happen, your limit order would be canceled automatically, and now you can invest in Tesla and try biting the trading day.
Step 4: Tracking your investments
Whatever you are investing in, whether it is your house, health, car, or stock, you must keep tracking and have a closer look at your investments. Because of the inexperience of leadership, the lack of knowledge, or unseen and uncontrollable external forces, the expectations from the stock can go wrong. On the other hand, they all can go the other way, your expectation can rule your account and surpass the company growth. It is vital to know when the stock market takes a turn and when your investments can take you to the next levels and vice versa.
How to invest in Tesla? Final thoughts
Now that you know how to invest in Tesla or any other stocks through your brokerage account, it is upon you how you foresee things and make your decisions. To thrive in your investments, it is the right time that you need to focus. Either it is Tesla, Amazon (Nasdaq: AMZN), Google (Nasdaq: GOOG), Apple (Nasdaq: AAPL), or some other stock, you can now begin with establishing grounds for your wealth through your stock investments with the least investments and more knowledge.
As if you are a beginner in investing stock, start by purchasing index funds that will help you build a diversified trading portfolio, which will include bonds, stocks, ETFs, mutual funds, and other asset-making alternatives. Although investing in the single stock of diversified sellers can be unstable towards your earnings, this is why you should limit your investments to any one stock.
In conclusion, keep in mind that today’s hottest stock can get cold tomorrow. Instead of seeking the market’s conqueror, the proven tactic is to look for a sustainable strategy that stays with you in the long run.