Tesla Inc (Nasdaq: TSLA), is an automotive and energy company specializing in the manufacture of electric vehicles. Based in Palo Alto, California, the company has been accelerating the world’s transition from fossil fuels with electric cars.
Founded in 2003 under the name Tesla Motors, the company is the world’s best-selling plug-in car maker in 2018. At the time of writing, Tesla had delivered more than 245,000 units. Currently, it has a market share of 12% in the plug-in segment sales.
Thanks to Tesla’s success, many investors have been looking to buy equity. Want to know how to buy Tesla stock?
Read on!
How Tesla Stock Has Been Performing in 2019
Tesla is a publicly-traded company. Its IPO was on June 29th, 2010 with the price at $17 a unit. Missed expectations and a string of surprises led to a sharp plunge in Tesla stock this year. In its second quarter, Tesla announced that the company had delivered 95,200 vehicles. This topped Wall Street estimates setting a new record.
In May 2019, Tesla shares were in a state of free fall. In fact, they nearly erased $7 billion in market value. This was Tesla’s longest losing streak in nine months. This decline came after Tesla analysts slashed earnings estimates and price targets.
In the past 6 years, Tesla’s stock has fallen 20% in a week. Every time this has happened, a bounce always follows. So far, the stock has experienced a 42% decline in 2019 which experts project to be the worst annual performance for the company since its 2010 IPO.
The only other negative year was in 2016 when the shares fell 11%. Its best performing year was in 2013 when the stock rose 344%.
In 2018, Elon Musk tweeted “Am considering taking Tesla private at $420. Funding secured.” This was followed by another tweet “Shareholders could either sell at $420 or hold shares and go private.”
On that day, the shares rose as high as $387.46 but since then, they have fallen 50%.
How to Buy Tesla Stock in 2019
Choose the right broker
To become a Tesla shareholder, you must choose the best brokerage firm. Here are three online brokers to get you started.
1. Lightspeed Trading LLC
Lightspeed is an online broker offering an electronic trading platform for active traders to trade financial assets. These assets include futures contracts, common stocks, preferred stocks, options, and mutual funds. Lightspeed’s robust trading software for professional traders allows traders to input key information in real-time. With day trading solutions providing ultra-low latency, active traders can find winning stocks and make smart decisions.
Available trading technology includes Sterling Trader, Lightspeed Trader, Livevol X Platform, Lightspeed web, and mobile.
Why choose Lightspeed Trading LLC:
- Stable and customizable trading technology
- Extra layer of security with 2 step verification
- Trading from one account
- Experienced customer support staff
- Registered with FINRA and SIPC
The broker also offers low-cost trading for all traders.
2. Interactive Brokers
As a US-based brokerage firm, the company brokers options, futures, forex, bonds, and funds. It provides direct and high-speed access to international markets. This enables active and professional traders to execute trades fast. As such, the Interactive Brokers network can process more than 1 million trades in a day.
Why Choose Interactive brokers:
- Offers transparent financing rates and low commissions
- Low margin rates
- Direct market access to futures, forex, options, and stocks from one account
- Automated risk controls
- On-demand training
With Interactive Brokers, even experienced traders can learn to stay ahead.
3. Webull
With free trading tools and free real-time data, Webull is a leading online broker providing direct market access to stocks, futures, and options. The broker offers zero commissions and zero platform fees. Also, no minimum deposit needed. All you have to do is sign up for a free account, fund it and start trading.
Why choose Webull
- Reliable support
- Free pre-market and after-hours trading
- Member of FINRA and SIPC
- In-depth chart analysis
- Real-time quotes
Remember, when you make your first deposit, you receive a free stock.
To open a brokerage account, click on the “Sign up” button on your broker’s website. Fill out the new account application with your details. Click on the email sent to your inbox to verify your. Make sure to check out our Webull review before signing up!
If more documents are needed for verification such as your Driving license/ID, or current utility bill, email the support team. After account verification, you can fund it.
Remember, check beforehand to know if you have to make a minimum deposit in your account. This amount varies with each broker and so do the commissions and trading fees. If you have a small amount to invest, we recommend a provider who offers a low minimum investment to open an account.
Determine How Much Tesla Stock You Want to Buy
How much would you like to invest in Tesla stock? Before you place your order, determine how much you want to buy. By doing so, you reduce your exposure to overall volatility.
We recommend not investing more than 5% of your total investment portfolio. Currently, Tesla stock is within the budget for most traders. As such, you will have no trouble buying several shares.
What you want to do is to invest in more financial assets to diversify your portfolio. How much can you afford? It is important to remember that stocks are volatile. To ensure your money works for you, you may want to leave the money for 3 to 5 years.
Making such a commitment eliminates the chances of selling the stock when its near low only. Why? You don’t to watch it rebound to a higher price after exiting the trade. Sticking to a long term allows you to ride out the ups and downs of the shares.
Place the Order
Now that you have opened a brokerage account and have determined the amount you can afford to invest, it’s time to buy Tesla stock. Open your brokerage account, fund it with the amount you can afford to lose and set your order.
To find Tesla stock, search using the company’s ticker symbol – TSLA. If you have a trade ticket, enter your order. Enter how many shares you can afford in the broker’s order form followed by the order type.
You have two order types:
- Market
- Limit
If you are buying a few shares, we recommend the market order. To avoid executing unwanted trades, the trading platform will display a screen with details about your order. To buy Tesla stock, hit the trade or execute button.
An email will be sent congratulating you as a new stock trader.
The Bottom Line
Now that you have bought Tesla stock, you might want to consider creating a diversified and low-cost portfolio. Remember, take a long-term perspective on your investments and keep an eye on their performance.
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