This is a comprehensive guide on how to buy Tesla shares in 2023 through a regulated stockbroker. We will teach you how to buy Tesla shares, tell you where to buy shares and what to look for when searching for the best Tesla shares broker. We will also tell how TSLA stock has performed in the past and the factors expected to influence its price action in 2023 and beyond.
In this guide, we tell you everything you need to know before buying Tesla shares. By the end of this, you will have decided whether Tesla stock is worth investing in 2023.
Your capital is at risk. Other fees apply.
Below, we will explore these steps, explaining each in detail.
The Tesla Stock (TSLA) Buying Guide - Reviewed
Step 1: Decide Where To Buy Tesla (TSLA) Stock
The first step to investing in Tesla is choosing a regulated and highly reputable broker. But for a brand as popular as Tesla, which has been listed by hundreds of massively 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, we advise that you consider these factors when comparing brokers:
- Cost of trading: When searching for a stock broker, confirm the trading and non-trading costs levied on their platform. Assess the impact these will have on the profitability of your trades and only register with the most affordable broker.
- Access to tools: The ideal broker should also give you access to premium research, trading, and risk management tools. They should also provide beginner-friendly tools and such resources as free demo accounts for practice trading.
- Security: Your preferred broker should also offer a security guarantee for your personal information and funds. They should maintain segregated bank accounts for all their clients and put in place proper safeguards around sensitive client data.
- Account minimums: We have already mentioned that different brokers have varied deposit and trade minimums. They also support different payment methods. Your ideal broker should support your preferred payment processor and maintain affordable deposit and trade minimums.
- Regulation and reputation: We advise that you only create a share trader account with a highly regulated broker. They should also have a solid reputation for reliability, excellent customer service, and ultra-fast order execution speeds.
In helping you find the broker that appeals most to you, our analysts have, however, vetted tens of these platforms. Ultimately, they settled on these two as the best Tesla share brokers.
eToro – Best Tesla Stock Broker for User Friendliness and Copy Trading
eToro tops our list of the best Tesla share brokers because of its user-friendliness and affordability. For starters, the broker maintains one of the most straightforward client onboarding processes and a highly navigable trading interface.
We also recommend registering with eToro because it is a highly regulated and reliable trading platform. Not forgetting that eToro is a multi-asset broker that lets you buy Tesla shares and invest in thousands of other financial instruments. These range from commodities, forex, indices, ETFs, and even cryptocurrencies
To start buying Tesla shares on eToro, you will need to deposit at least $10. Note, however, that the trading minimum for anyone wishing to copy trade on eToro is $200. These can be made via such payment methods as credit/debit cards, bank wire transfers, and eWallets like Skrill, Neteller, and PayPal. Deposits into eToro are also free, but the minimum withdrawal amount is $30 - and it attracts a fixed $5 processing fee.
eToro is a commission-free broker. This means that when buying TSLA shares on the platform, you will only have to part with a highly competitive and variable spread. And since eToro lets you buy Tesla stock or trade TSLA share CFDs, the only other trading fee you may incur is the swap/overnight fees for leveraged trades that remain open overnight.
You may also want to buy Tesla stock on eToro because it runs a highly innovative and resource-rich trading platform. This is available in proprietary web traders and mobile trading app platforms. These are rich in educational materials dedicated to beginner and intermediate traders.
They also integrate a wide range of premium trading, analysis, and risk-management tools dedicated to expert traders. These include customizable charts, real-time news and calendars, stop loss and negative balance protection.
We also recommend buying Tesla stock on eToro because it supports social and copy trading. Social trading allows for seamless interactions between all eToro platform users. Copy trading, on the other hand, makes it possible for virtually anyone using the platform to earn passively.
Your capital is at risk. Other fees apply.
Capital.com – Best Pure CFD Stock Trading Platform
We would also recommend using Capital.com when buying Tesla shares because of its innovativeness. The broker was among the earliest online trading platforms to integrate artificial intelligence into their trading platform. This tool has especially come in handy in helping traders eliminate bias when trading because of its stellar post-trade behaviour analysis resource.
In addition to the AI tool, Capital.com boasts of maintaining one of the fastest order execution speeds on its platform. It also complements the AI tool with tens of premium analysis, trading, and risk-management tools. At the time of writing, for example, Capital.com claims to have 70+ analysis tools integrated into its trading platform.
Note, however, Capital.com is a pure CFD trading platform. This means that unlike eToro, which lets you buy actual Tesla shares, you can only trade TSLA share CFDs on Capital.com. The broker, nevertheless, lets you margin-trade this stock 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 eWallets like PayPal. The broker doesn't charge deposit/withdrawal processing fees.
Capital.com is also commission-free. When buying Tesla shares on the platform, you will only have to pay a competitive spread. You may also have to part with equally competitive and variable swap fees if your leveraged trades remain open overnight.
Step 2: Research Tesla (TSLA) Stock
Before you begin buying and selling Tesla shares, it is important that you first familiarize yourself with the different factors affecting TSLA stock price. These let you know when to buy the company shares and when to sell them.
But to identify the TSLA share price influencers, you need to learn about the company, how it makes money, its current financial health, and how its stock has performed in the past. We cover all 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 like the Powerpack, Powerwall, and Megapack batteries, solar panels, and solar roofs.
Originally named Tesla Motors, Inc., the company was incorporated 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. He only took over the company CEO position 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 passing 1 million in 2021. Overall, more than 3 million units of Tesla EVs had been sold by December 2022. This has made Tesla the most successful electric vehicle manufacturer, with a 65% market share – a slight slip from the 71% market share held in December 2022.
With a market capitalization of $388 Billion (as of December 2022), Tesla is the most valuable car manufacturer in the world. This valuation helped it eclipse century-old and more established brands like 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 an impressive market cap and sales numbers, Tesla has had a rough 2022. It became the sixth US company to break above $1 Trillion market cap in October 2021 but has since shed more than 62% of this value. The company and its CEO – Elon Musk – have also been under heavy journalistic criticism from the mainstream media and government scrutiny and are the subject of multiple lawsuits.
Tesla has three core revenue sources. The bulk of Tesla's revenue – as much as 85% of its annual revenue for the third quarter in 2022 – came from the sale of electric vehicles. Tesla also makes money through the sale of its Powerwall batteries and solar products. And lastly, Tesla makes money from servicing, repairing, and insuring its EVs.
Note that though Tesla has been around since 2002, it only reported its first full year of positive net income in 2020. In 2021, Tesla's net income jumped from the $721 Million recorded in 2020 to more than $5.5 Billion. This explains the unprecedented TSLA stock gain throughout 2020 and 2021 and the eventual break above $1 Trillion valuation.
Despite the many challenges dogging the company, Tesla continued to report positive revenue growth throughout 2022. In the 12 months leading to September 2022, for example, Tesla's net income exceeded $11.19 Billion – a 219%+ gain 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 – a 213% increase YoY. It also had a quick ratio of 1:04 at the end of 2022.
Tesla Historical Price Performance
Tesla went public in June 2010 when it was listed with NASDAQ. At the time, 13.3 million shares were offered to the public at an IPO price of $17. The company has since 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 divided into 15 equal shares. This gives Tesla an adjusted IPO price of $1.13.
Twelve years later, Tesla has maintained an overall uptrending price action. It started by breaking above $5 in May 2013 before rallying by more than 200% in the three months that followed to break above $10 in August same year.
In the four years that followed, TSLA stock price ranged between $10 and $17 and only tore above $20 in April 2018. Much of the lacklustre stock performance could be attributed to such factors as negative net income.
Tesla stock started rallying in the last quarter of 2019 and broke above $50 for the first time in early 2020. This rally saw it tear above $60 in February before the Covid-19-induced correction that caused the TSLA price to skid below$30 in the last week of March. But this setback was temporal as it resumed the rally and climbed back to $60 three months later.
In July, Tesla tore above $100, and by the end of the year, it had climbed close to 300% to reach $295. The recovery was followed by yet another correction in the first half of 2021, which saw TSLA's share price dip to $190. The recovery was, however, swift, and on 4th November 2021, Tesla stock set its current all-time high of $410.
In 2022, Tesla has made several milestones. In fact, the company had its best year yet in terms of revenue growth and car sales. This, however, didn't stop its stock from losing 70% of the November 2021 peak price and invoking investor ire.
Factors Affecting Tesla Share Price
Tesla is clearly a volatile stock, as evidenced by its speedy uptrend between 2020 and 2021 and unprecedented downtrend throughout 2022. If you are to invest in Tesla, you need to understand the factors influencing this price action. This helps you learn when to enter into a position, hold, and when to exit.
Here are a few factors that we expect to continue influencing TSLA price in 2023 and beyond:
- Company finances: As with all other companies, Tesla's financial standing plays a critical role in influencing its stock price. A boost in vehicle sales increased total revenues, and increased net income will all help push up TSLA stock price.
- Elon Musk: Elon Musk is also key to Tesla's success. His pronouncements and announcements, especially on Twitter, have a significant impact on TSLA price and are thus highly relevant, especially to 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 rally if they start to gain (as they did in 2021).
- Competitor activity: While Tesla continues to maintain a controlling lead in the EV niche, several other players have invested heavily in this field in the recent past. These include Ford and GM in the US and several Chinese automakers. An increase in their EV sales, higher revenues, or brand popularity reflects negatively on Tesla's stock price.
- Macroeconomics: Rising inflation and interest rates in the US are expected to continue to affect EV sales and TSLA stock price. So will lockdowns and other Covid-19 restriction measures in China. So will Zimbabwe’s export ban on Lithium - a critical raw material for Tesla car batteries. The looming recession will also have an adverse effect on the company's stock price.
Your capital is at risk. Other fees apply.
Step 3: Open a Share Investor Account and Buy Tesla Stock
Now that you understand where to buy Tesla stock and what factors you need to consider when making buy and sell decisions, we now need to look at the actual buy process.
Want to start buying your first Tesla stock on eToro, follow this guide:
Open a stock broker account
On your browser, open the official eToro website or download the eToro mobile trading app from the app store. Click the "Join Now" button and complete the user registration form that pops up. This only captures your basic personal information, trading experience, and income sources.
Verify your identity
Seeing that 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 national ID, passport, or driver's license.
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 tab will pop up, indicating all the payment options available to you depending on your country of residence. Choose one and follow the prompts to fund your account.
Buy Tesla stock
After the payment reflects in your trade account, click on the discover icon to see the assets supported by eToro. Click on stocks and, from the list of supported shares, choose Tesla. Tap on the buy option and use the trending tab that pops up to customize this trade, then click on the open trade button to execute this investment.
Your capital is at risk. Other fees apply.
Tesla Stock Strengths And Weaknesses
Are Tesla shares worth buying in 2023? This is the question that every stock investor interested in Tesla must ask themselves before clicking the buy button.
To help you understand why Tesla is worth buying in 2023, we have sampled a few reasons to buy and a few more reasons why today may not be the best time to buy Tesla stock.
Reasons to Buy Tesla Stock in 2023
- Fast-paced growth: we have already mentioned that Tesla has had its best year yet. Total revenues, net income and global EV sales have been on the rise. This, however, did not reflect in its 2022 stock price. We expect the technology stock to use these attractive figures as the launch pad for its next rally as soon as the market stabilizes.
- Demand for green technology: looking into 2023 and beyond, we expect the growing concern for environmental conservation and demand for green technology stocks like Tesla.
- Resilience: Tesla has already proven its resilience by surviving near bankruptcy, the financial crisis, and a lot of negative journalistic criticism and biased government administrations. These have investors convinced that it will survive the looming recession.
Reasons Not to Buy Tesla Stock
- Stiff competition: Tesla faces stiff competition from the likes of GM, Ford, and Chinese automakers - who are expected to continue eating into its market share. This will have an adverse effect on Tesla stock price in 2023.
- Looming recession: If the global economy enters into recession in 2023, you can expect a market crash that pushes Tesla's share price further down. This means today may not be the best time to invest in the Elon Musk company.
Conclusion - How To Buy Tesla Stock
Tesla pioneered the electric car manufacturing industry. Two decades later, it has morphed into the most valuable automaker in the world. It beat century-old brands to become the first car manufacturer 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 yet in 2022. However, this didn't reflect in its stock price – thanks to the piling negative criticism of Tesla and Elon Musk, the extended bear market, plummeting tech industry 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 shares. We discussed where to buy TSLA stock, factors influencing Tesla's stock price, and if it is worth investing in 2023. Want to start buying Tesla shares today, use the detailed guide we have outlined above.
eToro – Buy Tesla Stock With 0% Commission
Open an account with eToro, deposit some funds with USD, and finally – buy Shares from just $10.
Your capital is at risk. Other fees apply.
FAQs About How To Buy Tesla Stock
How can I buy Tesla stock today?
Start by registering a share trader 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, just what does not pay dividends. In fact, the company only made a full year of profit in 2020.
How much do I need to buy Tesla stock?
Most online brokerages allow for fractional share ownership and maintain relatively low deposit and trading minimums. To start buying Tesla shares on a Toro, you only need $10.
Will Tesla stock rebound in 2023?
Yes, the majority of analysts and even the fundamentals indicators show that Tesla will rebound and possibly rally to new heights as soon as the larger stock market stabilizes.
Why is Tesla's share price falling?
Tesla's 70% dip in 2022 may be attributed to a host of factors. For starters, it could be due to the ongoing bear market. It could also be attributed to the following technology shares. Lastly, it could be due to the rising negative criticism of both Tesla and its CEO Elon Musk.