How to Buy Tesla Stocks and Shares (TSLA) – Forbes Advisor UK

As attention focuses on its chief executive’s attempt to buy Twitter, Tesla shares rose more than 10% this week after the electric carmaker beat analysts’ expectations by reporting that revenue had more than doubled to £14.3 billion in the first quarter of 2022.

Record deliveries, along with price increases, also helped Tesla, the world’s most-valued carmaker, post record profits worth £2.5billion in the first three months. of 2022, compared to £337 million over the same one-year period. from.

Tesla boss Elon Musk has predicted the company will produce 1.5 million vehicles this year. In recent months, the automaker has defied manufacturing disruptions and supply chain issues that have hurt productivity at rival companies.

However, the company went on to warn that supply chain issues “remain persistent” and added that it is “focused on growing as quickly as reasonably possible”.

Electric vehicles (EVs) continue to become mainstream and the Society of Motor Manufacturers and Traders recently reported that battery-powered EVs account for around one in six of all new car sales in the UK.

Analysts are divided on whether the company’s stock price, up about 40% in the past 12 months, can maintain its upward trajectory. Here’s what you need to know about buying and selling Tesla stock.

Please note: investing in companies does not carry any guarantees. When buying shares of a company, it is possible to lose some, and very occasionally all, of your money.

That said, over the long term – and by that we mean a bare minimum of five years (and preferably much longer) – chosen wisely, it is possible for equity investments to produce returns well above those available, say, ultra – safe and low-interest deposit accounts. Especially once inflation is taken into account.

Why own stocks?

Before buying shares in a company, ask yourself why you are making this decision. Does the company have great prospects with a stock price that could go from strength to strength?

Or are there talks of a looming takeover that could potentially boost a company’s stock price? Perhaps the company you identified is on a turnaround mission and its stock price is beginning to recover from previous lows.

How to buy stocks

There are several steps to go through once you have made sure of the reasons for buying stock in a particular company.

1) Open an account

Whether you’re a seasoned stock trader or someone new to stock market investing, if you want to buy Tesla stock, you’ll need to open an account with a regulated brokerage.

Brokerage is a competitive market these days and services for do-it-yourself investors come in many different guises – from online investment platforms run by some of the biggest names in financial services to more nimble investment trading apps that work on your smartphone or tablet.

Before opening an account, keep the following in mind:

  • Keep your ultimate financial goals in mind
  • Be prepared for the ups and downs of the stock market
  • Aim to keep trading costs to a minimum
  • Remember that investing in stocks may incur tax charges, for example, when selling part of your portfolio.

And before you buy stocks, ask yourself these questions:

  • Should I take financial advice?
  • Am I comfortable with the level of risk in question?
  • What is my investment budget?
  • Can I afford to lose money?
  • Do I understand the company I am looking to invest in?
  • Am I protected if my platform provider/advisor goes bankrupt?

2) Where is Tesla traded?

Tesla’s stock symbol is TSLA and the company is listed on the Nasdaq market in the United States. Nasdaq trading hours are 2.30pm to 9pm (UK time) Monday to Friday.

3) Do your research

To learn more about Tesla, go online and visit the company’s website. Investor Relations page.

4) What is your investment strategy?

People tend to invest in two ways: either with a lump sum purchase or through smaller, more stable amounts over time.

This latter method is often referred to as a way to “pound cost averaging”, a stock market hack that can help you pay less per share on average over time. Rather than waiting to build up a lump sum, this means that an investor’s money is immediately used in the market.

5) Place an order

Once you’re ready to buy Tesla stock, log in to your investment account or trading app. Type in the stock symbol TSLA and the number of shares you want to buy, or the amount of money you are willing to invest.

6) Examine Tesla’s performance

Whether your stock portfolio is full of companies or contains only a handful of stocks, it is essential that you review the performance of each component regularly: monthly, quarterly or annually.

This gives you the opportunity to review performance and ask if any adjustments to your holdings are needed – to maintain the status quo, buy more shares or sell existing shares.

How to sell stocks

If you are happy with the performance of your stocks and want to (hopefully) make a profit, there will come a time when you will want to sell your holdings. To do this, log in to your investment platform, enter the stock symbol and select the amount you want to sell.

Note that if you have made a substantial profit, you may be liable for capital gains tax (CGT) when you come to sell your holdings, especially if your shares were held outside of tax-exempt packaging. such as an individual savings account. .

The non-taxable CGT allowance for the 2022-23 tax year is £12,300. Learn more here on CGT, rates and allowances.

How to invest in Tesla through a fund

Investing directly in individual stocks can be a fun, fascinating and hopefully profitable experience. It may also entitle you to shareholder benefits specific to the company in question.

Investing directly in individual companies, however, can make you vulnerable to stock market volatility and unexpected fluctuations in stock prices. These days, even a solo tweet — let alone a full-fledged geopolitical dispute — can send shockwaves through the stock market.

This is why financial experts recommend that most people invest in a diverse mix of asset classes and funds holding hundreds, if not thousands, of company stocks.

Being a major component of the Nasdaq index, Tesla is found in many “active” and “passive” funds (index tracker) incorporating a bias towards the United States.

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