This is a comprehensive guide on how to buy Tesla stock in 2023 through a regulated stockbroker. We’ll teach you how to buy Tesla stock, tell you where to buy stocks, and what to look for when looking for the best Tesla stock broker. We will also tell how TSLA stock has performed in the past and the factors that should affect its price action in 2023 and beyond.
In this guide, we tell you everything you need to know before buying Tesla stock. At the end of this, you will have decided whether Tesla shares are worth investing in 2023.
Table of Contents:
How to Buy Tesla Stock (TSLA) – Overview
Here is an outline of the step-by-step process of buying Tesla shares. It has been embraced by virtually every popular stock broker in the world, making it an almost standard process of investing in stocks on most regulated online trading platforms.
- Step 1: Create a stock trading account – Start by identifying a regulated broker and create a trader account with them. Most brokers will only ask for your basic personal information and ask you to create a password.
- Step 2: Verify your identity – Every regulated online broker will also ask you to verify your identity before you can start depositing into your account or buying Tesla shares.
- Step 3: Deposit funds – After the broker has approved your account, log in and deposit at least the minimum deposit/trading. Understand that different brokers maintain various deposits and trading minimums. They also support different payment options. Therefore, take them into consideration when looking for the best Tesla stock brokers.
- Step 4: Buy Tesla Stock – Look for Tesla shares on the broker’s trading platform. Place a purchase order on the platform, customize it and execute the exchange.
That’s all! By following these simple steps, you can buy Tesla stock in less than 10 minutes.
Step 1: Decide where to buy Tesla stock (TSLA)
The first step to investing in Tesla is to choose a regulated and highly reliable broker. But for such a popular brand as Tesla, which has been listed by hundreds of people extremely popular trading platforms, finding the best stock broker can be quite overwhelming.
How, then, do you find the broker that works best for you? Well, you’ll want to consider these factors when comparing brokers:
- Cost of trading: When looking for a stockbroker, confirm the trading and non-commercial costs applied on their platform. Assess the impact these will have on the profitability of your trades and register only with the most convenient broker.
- : The ideal broker should also give you access to premium research, trading and risk management tools. They should also provide beginner-friendly tools and resources such as free demo accounts for hands-on trading.
- Security: Your preferred broker should also offer a guarantee of security for your personal information and funds. They should maintain separate bank accounts for all their customers and put in place adequate safeguards on sensitive customer data.
- Account Minimums: We have already mentioned that different brokers have different deposits and trading minimums. They also support different payment methods. Your ideal broker should support your preferred payment processor and maintain convenient trading deposits and minimums.
- Regulation and reputation: We recommend that you create a stock trading account only with a highly regulated broker. They should also have a solid reputation for reliability, excellent customer service, and ultra-fast order execution speeds.
Access to tools
In helping you find the broker you like the most, our analysts have, however, reviewed dozens of these platforms. In the end, they opted for these two as the best Tesla stock brokers.
eToro – Best Tesla Stock Broker for Ease of Use and Copy Trading
eToro tops our list of the best Tesla stock brokers for its ease of use and convenience. For starters, the broker maintains one of the simplest client onboarding processes and a highly navigable trading interface.
We also recommend that you register with eToro because it is a highly regulated and reliable trading platform. Not forgetting that eToro is a multi-asset broker that allows you to buy Tesla shares and invest in thousands of other financial instruments. These range from commodities, forex, indices, ETFs, and even cryptocurrencies
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To start buying Tesla shares on eToro, you will need to deposit at least $10. Note, however, that the minimum trading for anyone wishing to copy the trade on eToro is $200. These can be made through payment methods such as credit/debit cards, bank transfers, and e-wallets such as Skrill, Neteller, and PayPal. Deposits in eToro are also free, but the minimum withdrawal amount is $30 – and it attracts a fixed processing fee of $5.
eToro is a commission-free broker. This means that when you buy TSLA shares on the platform, you will only have to part with a highly competitive and variable spread. And since eToro allows you to buy Tesla shares or trade CFDs on TSLA shares, the only other trading fee you might incur is swap/overnight fees for leveraged trades that stay open overnight.
You may also want to buy Tesla shares on eToro because it operates a highly innovative and resource-rich trading platform. This is available in proprietary web traders and mobile trading app platforms. These are packed with educational materials dedicated to beginner and intermediate traders.
They also integrate a wide range of premium trading, analysis and risk management tools dedicated to experienced traders. These include customizable charts, real-time news and calendars, stop loss, and negative balance protection.
We also recommend buying Tesla shares on eToro because it supports social and copy trading. Social trading enables seamless interactions between all users of the eToro platform. Copy trading, on the other hand, allows pretty much anyone using the platform to earn passively.
Capital.com – Best Pure CFD Stock Trading Platform
We also recommend using Capital.com when buying Tesla shares because of its innovativeness. The broker was among the first online trading platforms to integrate artificial intelligence into its trading platform. This tool is particularly useful for helping traders eliminate biases while trading thanks to its stellar post-trade behavior analysis resource.
In addition to the AI tool, Capital.com prides itself on maintaining one of the fastest order execution speeds on its platform. It also integrates the AI tool with dozens of premium analysis, trading and risk management tools. At the time of writing, for example, Capital.com claims to have 70+ analysis tools built into its trading platform.
Note, however, Capital.com is a pure CFD trading platform. This means that unlike eToro, which allows you to buy actual Tesla shares, you can only trade CFDs on TSLA shares on Capital.com. The broker, however, allows you to trade this stock on margin with leverages of up to 1:5.
To start trading Tesla CFDs on the platform, you will need to deposit at least $20. Like eToro, the broker supports a wide range of popular payment methods, including bank transfers, bank cards, and e-wallets like PayPal. The broker does not charge deposit/withdrawal processing fees.
Capital.com is also commission-free. When you buy Tesla shares on the platform, you will only have to pay a competitive spread. You may also need to part with equally competitive and variable swap fees if leveraged trades remain open overnight.
Step 2: Tesla stock search (TSLA)
Before you start buying and selling Tesla stock, it’s important to familiarize yourself with the different factors that affect your TSLA stock price. These allow you to know when to buy the company’s shares and when to sell them.
But to identify TSLA stock price influencers, you need to know the company, how it makes money, its current financial health, and how its actions have behaved in the past. We cover all of these in this section.
What Is Tesla?
Tesla is an American multinational car and clean energy company. It specializes in the design and manufacture of electric vehicles – cars and trucks – as well as clean energy products such as Powerpack, Powerwall and Megapack batteries, solar panels and solar roofs.
Originally called Tesla Motors, Inc., the company was formed in July 2003 by Marc Tarpenning and Martin Eberhard. It is named after the popular inventor and futurist – Nikola Tesla. In 2004, Elon Musk invested $6.35 million in the startup, making him the majority shareholder and chairman of its board of directors. He took over the position of CEO of the company only in 2008.
Tesla began production of its first car model, a sports car – Roadster – in 2009. This was followed by the sedan – Model S in 2012, an SUV – Model X – in 2015, another sedan – Model 3 – in 2017, the compact crossover – Model Y – in 2020 and the Tesla Semi-truck in 2022.
Model 3 has been Tesla’s most successful car brand, with its unit sales exceeding 1 million in 2021. Overall, more than 3 million units of Tesla electric vehicles had been sold by December 2022. This has made Tesla the most successful EV maker, with a 65% market share, a slight drop from the 71% market share held in December 2022.
With a market cap of $388 billion (as of December 2022), Tesla is the world’s most valuable automaker. This valuation has helped eclipse secular and more established brands such as General Motors, Ford, and Toyota, even though its annual sales volumes and production units are a fraction of these giant automakers.
We must, however, observe that even with such impressive market capitalization and sales numbers, Tesla had a difficult 2022. It became the sixth U.S. company to surpass the $1 trillion market cap in October 2021, but has since lost more than 62% of that value. The company and its CEO – Elon Musk – have also come under heavy journalistic criticism from the mainstream media and government scrutiny and are the subject of multiple lawsuits.
Tesla Financial Data
Tesla has three main sources of revenue. Most of Tesla’s revenue — up to 85% of its annual revenue for the third quarter in 2022 — came from electric vehicle sales. Tesla also makes money through the sale of its Powerwall batteries and solar products. And finally, Tesla makes money from the maintenance, repair and insurance of its electric vehicles.
Note that although Tesla has been around since 2002, it only reported its first full year of positive net income in 2020. In 2021, Tesla’s net profit rose from $721 million in 2020 to more than $5.5 billion. This explains the unprecedented gain in TSLA shares throughout 2020 and 2021 and the eventual break above the $1 trillion valuation.
Despite the many challenges facing the company, Tesla continued to post positive revenue growth throughout 2022. In the 12 months to September 2022, for example, Tesla’s net profit exceeded $11.19 billion – a gain of 219%+ year-over-year.
Note that Tesla had a price-to-earnings (P/E) ratio of 34.1 in December 2022. For the 12 months ending September 2022, its earnings per share stood at $3.24, an increase of 213% year-over-year. It also had a rapid ratio of 1:04 at the end of 2022.
Tesla’s Historical Price Performance
Tesla went public in June 2010 when it was listed on NASDAQ. At the time, 13.3 million shares were offered to the public at an IPO price of $17. Since then the company has undergone two stock splits (3 for 1 in October 2022 and 5 for 1 in August 2020). This means that the original TSLA stock has now been split into 15 equal shares. This gives Tesla an adjusted IPO price of $1.13.
Twelve years later, Tesla has maintained an overall upward trend in prices. It started surpassing $5 in May 2013 before rising by more than 200% in the following three months to surpass $10 in August of the same year.
Over the next four years, TSLA’s stock price ranged between $10 and $17 and exceeded only $20 in April 2018. Much of the sluggish performance of equities could be attributed to factors such as negative net income.
Tesla shares started rising in the last quarter of 2019 and topped $50 for the first time in early 2020. This rally saw it break above $60 in February before the Covid-19-induced correction that slipped the TSLA price below $30 in the last week of March. But this setback was temporal when it resumed the rally and rose to $60 three months later.
By July, Tesla had surpassed $100, and by the end of the year it had risen close to 300% to reach $295. The recovery was followed by another correction in the first half of 2021, which saw TSLA’s share price fall to $190. The recovery was, however, rapid, and on November 4, 2021, Tesla shares set its current all-time high of $410.
In 2022, Tesla reached several milestones. In fact, the company had its best year in terms of revenue growth and car sales. This, however, did not prevent its shares from losing 70% of the November 2021 peak price and invoking the wrath of investors.
Factors affecting the Tesla stock price
Tesla is clearly a volatile stock, as evidenced by its rapid upward trend between 2020 and 2021 and an unprecedented downtrend throughout 2022. If you are going to invest in Tesla, you need to understand the factors that influence this price action. This helps you learn when to enter a position, hold and when to exit.
Here are some factors we expect to continue influencing the TSLA price in 2023 and beyond:
- Corporate finance: As with all other companies, Tesla’s financial position plays a critical role in influencing its stock price. An increase in vehicle sales has increased total revenues, and the increase in net profit will help push up the TSLA stock price.
- Elon Musk: Elon Musk is also the key to Tesla’s success. His statements and announcements, especially on Twitter, have a significant impact on the TSLA price and are therefore very relevant, especially for short-term investors.
- Industry Trends: Tesla’s stock price also follows industry trends. It will fall (as it did in 2022) when tech stocks dump and rise if they start to gain (as they did in 2021).
- Competitor activity: While Tesla continues to maintain a controlling edge in the EV niche, many other players have invested heavily in this field in the recent past. These include Ford and GM in the United States and several Chinese automakers. An increase in electric vehicle sales, higher revenues or brand popularity are negatively reflected in Tesla’s stock price.
- Macroeconomics: Rising inflation and interest rates in the U.S. are expected to continue to affect electric vehicle sales and TSLA stock price. The same applies to lockdowns and other Covid-19 restriction measures in China. As well as Zimbabwe’s export ban on lithium, a key raw material for Tesla car batteries. The looming recession will also have a negative effect on the company’s stock price.
Step 3: Open an equity investor account and buy Tesla stock
Now that you understand where to buy Tesla stock and what factors you need to consider when making buying and selling decisions, we now need to look at the actual buying process.
To start buying your first Tesla shares on eToro, follow this guide:
Open a stockbroker account
On your browser, open the official eToro website or download the eToro mobile trading app from the app store. Click the “Sign Up Now” button and complete the user registration form that appears. This only captures your basic personal information, trading experience, and sources of income.
Verify your identity
As eToro is a regulated broker, you will be required to verify your identity before you can start depositing and trading on the platform. Simply send the broker a copy of your government-issued ID card, passport, or driver’s license.
Deposit funds
eToro will send you an email notification informing you that your account has been approved. Log in to your trader account and, on the user dashboard, click on the deposit funds icon. A funding card will appear, indicating all the payment options available depending on your country of residence. Choose one and follow the instructions to fund your account.
Buy Tesla Stock
After the payment is reflected in your trading account, click the discover icon to see the assets supported by eToro. Click Actions, and from the list of supported actions, choose Tesla. Tap the buy option and use the trend tab that opens to customize this trade, then click the open trade button to execute this investment.
Strengths and weaknesses of Tesla shares
Is it worth buying Tesla shares in 2023? This is the question that every stock investor interested in Tesla must ask themselves before clicking on the buy button.
To help you understand why it’s worth buying Tesla in 2023, we’ve sampled a few reasons to buy and a few other reasons why today might not be the best time to buy Tesla stock.
Reasons to buy Tesla shares in 2023
- Fast-paced growth: We’ve already said that Tesla had its best year. Total revenues, net profit and global sales of electric vehicles are on the rise. This, however, was not reflected in the 2022 stock price. We expect the tech stock to use this interesting data as a springboard for its next rally as the market stabilizes.
- : Looking ahead to 2023 and beyond, we expect growing concern about environmental conservation and demand for green technology stocks like Tesla.
- Resilience: Tesla has already proven its resilience by almost surviving bankruptcy, the financial crisis, and a lot of negative journalistic criticism and biased government administrations. These have convinced investors that it will survive the looming recession.
Green technology demand
Reasons not to buy Tesla stock
- Fierce competition: Tesla faces stiff competition from GM, Ford and Chinese automakers, which are expected to continue to consume its market share. This will have a negative effect on Tesla’s share price in 2023.
- Looming recession: If the global economy enters a recession in 2023, you can expect a market crash that will push Tesla’s stock price lower. This means that today may not be the best time to invest in Elon Musk.
Conclusion – How to Buy Tesla Stock
Tesla pioneered the electric car manufacturing industry. Two decades later, it has become the world’s most valuable automaker. It beat century-old brands to become the first automaker to be valued at $1 trillion and dominate the EV niche by controlling 65% of the market share.
The tech company had its best year in 2022. However, this has not been reflected in its share price – thanks to the accumulation of negative criticism of Tesla and Elon Musk, the extended bear market, the collapse of tech stocks and the threat of a looming global recession.
In this post, we have discussed everything you need to know about how to buy Tesla stock. We discussed where to buy TSLA stock, the factors affecting Tesla’s stock price, and whether it’s worth investing in 2023. Want to start buying Tesla stock today, use the step-by-step guide we’ve outlined above.
Frequently asked questions about buying Tesla stock
How can I buy Tesla shares today?
Start by registering a stock trading account with a regulated broker. Verify your identity and fund your account. Search for Tesla shares and place my order.
Does Tesla pay dividends?
No, only what does not pay dividends. In fact, the company only made a full year of profit in 2020.
How much should I buy Tesla shares?
Most online brokers allow fractional ownership and keep deposits and trading minimums relatively low. To start buying Tesla shares on a Taurus, you only need $ 10.
Will Tesla shares rebound in 2023?
Yes, most analysts and even fundamental indicators show that Tesla will bounce back and likely reach new heights as soon as the larger stock market stabilizes.
Why is Tesla’s stock price falling?
Tesla’s 70% drop in 2022 can be attributed to a number of factors. For starters, it may be due to the ongoing bear market. It could also be attributed to the following technological actions. Finally, it could be due to growing negative criticism from both Tesla and its CEO Elon Musk.
