Investing in Tesla is one of the investments that has met with great popularity in the recent period. This is due to the enormous price fluctuations that this stock has witnessed recently. When there are price fluctuations, there is always an opportunity to achieve gains if accurate analytical strategies are followed for this market, and selling/buying are built.
Tesla is one of the most famous automotive companies known worldwide, with its reputation in almost all parts of the world. This is due to the unique products it can offer, which it has positioned as the first choice for many worldwide.
Although the company was established on July 1, 2003, specifically in San Carolus, California, in the United States of America, the company started trading in the NASDAQ stock market under the banner of TSLA in 2010. It was able to reap real profits after three Years of its offering in the public offering, and this is in the first quarter of 2013.
In the following report, we will discuss with you in detail the investment in Tesla and what are the things that you should take into consideration when you want to start your investment in the shares of this company.
What is Tesla?
It is a company specializing in the manufacture and production of electric cars and the manufacture and production of electrical components for electric trains. The company is a public company, and its shares are publicly traded on the Nasdaq exchange.
The company’s shares witness large price fluctuations in the stock market in which they are offered, as those price fluctuations are the hallmark of the performance of that share, as the highest price value witnessed by the share was $ 2,213.40.
The stock was split 5 for 1 on August 31, 2020, and this led to a drop in the price of one share to its lowest level at $ 400; and the stock is currently trading at a price higher than $ 686.70, and of course, the price varies from time to time, up and down.
Tesla share price
Before going into the details of how to invest in TESLA shares, you can follow the company’s share price over the last period and how the stock has moved, we show you the price of Tesla’s stock according to the schedule.
How to invest in Tesla?
By realizing the following elements, you can determine if you can invest in Tesla or not, which are as follows.
Think about the basics of the company
Before you rush towards trading in Tesla shares, you must get to know it completely, as it is not a regular investment, but rather an actual business activity in which you will put your money, so you should get to know the company’s activity in general, and its balance sheet.
Also, you should take a look at the public data available about the company, its income, who its competitors are in the market, and what is responsible for its board of directors, as such matters give you a comprehensive and general overview of the situation of the Tesla company that you intend to deal with, to determine your investment strategies.
You can access the data, details, and basic information of Tesla. This is through your brokerage firm account or any website that specializes in providing financial information. On those sites, you will find a complete analysis of the company its position in the market.
See if it is suitable for your investment portfolio
After getting to know all the details about Tesla clearly, you must decide if your investment with this company will be ideal for your investment portfolio or not.
In any case, you may not have an investment portfolio in the first place, and this is when Tesla is your first investment in the world of the stock market. Here you should decide if the investment in this company is suitable for your budget or not.
If you already own an investment portfolio, diversification is one of the basic principles and a key to a successful investment. This means that you should distribute the budget that you have over various investments, meaning that you trade on the shares of more than one company, in more than one location, in more than one diversified field.
You can also choose the trading section of the forex market next to trading in corporate stocks. The important thing is that your investment portfolio is unique to one investment because diversity creates the possibility for you to achieve more profits, unlike unifying investment in one area, as it can lead to significant material losses if your investment does not come as expected.
In general, a good investment portfolio contains a diverse mix of stocks, bonds, and assets in various investment fields that suit the trader’s objectives, schedule, and ability to bear the risks of trading in a particular market.
Determine how much you will invest in Tesla
If you decide to trade in Tesla, you should determine the amount of money you will trade with within this company, meaning determining the amount of money you will spend to invest in that company’s shares.
When determining the amount of investment, whether it is related to Tesla company, or other investment companies, you should pay attention to what you have in your investment portfolio of funds in general.
In general, you should also set a contingency sum away from the investment so that you can take advantage of it at crucial times when quick action is required.
Also, when determining the amount you will invest in Tesla, this amount should not be needed in a short time frame. This is because investing in Tesla is not a short-term investment like forex investments, for example. Still, it is a long-term investment, so the shortest period you can wait after purchasing the shares of a company Tesla to get meaningful profits from this investment process is at least five years, so the money that you will trade in Tesla should be money you are indispensable for the current period, and you will not need it shortly.
Suppose you do not have the sufficient amount to invest in Tesla so that the money you have cannot buy a full share within the company. In that case, you can here resort to buying a partial share, which means buying a part of the share. There are many brokerage companies available electronically that offer You can purchase partial stakes in individual Tesla stocks.