Step 3: Buy Tesla Shares
It’s time to utilize the search bar to acquire Tesla shares once you’ve funded your account. Click the ‘TRADE’ button after typing Tesla or TSLA into the search box.
eToro Tesla shares
The order form will be shown. Now is the moment to place any bet that is greater than $50 US dollars.
If you trade within regular market hours, the ‘Open Trade’ option will appear. Otherwise, you can place your order by clicking the ‘Set Order’ button: your order will be executed once the market opens and the requirements are satisfied.
Once you know how to buy Tesla shares, it’s time to understand when and why you should or should not buy Tesla shares. Let’s start with a quick analysis of the company.
Do some research on Tesla shares
Even though many factors can affect shares, you can keep it simple and stick to the basics. These are the top three factors worth your attention when it comes to deciding on Tesla shares.
Analyze the news
News often affects not only the current value of shares but also their potential value. For example, in recent news, Tesla unveiled its new supercomputer, which is already the fifth most potent computer globally. It’s being used to train the neural networks that power Tesla’s autopilot and upcoming autonomous AI.
“Tesla is developing a NN training computer called Dojo to process truly vast amounts of video data. It’s a beast! Please consider joining our AI or computer/chip teams if this sounds interesting,”
Musk shared on his Twitter.
Tesla’s current version of the system is only a third of the final configuration of the ‘Dojo’ so that the company may end up with the second most powerful supercomputer in the world at its disposal. Tesla has been working on the ‘Dojo’ for the past few years, and Musk hints that it should be ready by the end of this year.
In other news, Tesla has announced that it has completed the first phase of equipping supercharging stations for electric cars on the Great Silk Road. The company has installed Supercharger stations along the stretch from Shanghai to Khorgos, located in the west and east of the country. The total length of the section is 5,000 km, where 27 charging stations have been installed. Thus, the owners of electric cars will find a place to recharge their vehicles every 100-300 km. Earlier, the company reported that it intends to lay a full-fledged route with superfast charging stations to London. At the moment, Tesla has built about 2.7 thousand Supercharger charging stations around the world.
How could this news affect the share price? Most likely, the company’s shares will rise in price after this news:
- Accurate algorithms and powerful computers will improve the autopilot, which could spur the company to develop passenger transportation. Then the company will become a direct competitor to Uber in the U.S, which opens up significant opportunities.
- Building charging stations in Asia strengthens the company’s position in China, one of the most developed markets for e-cars.
The earlier you react to the news, the more chances you have to make the right decision.
Consider different factors
Some news is not directly related to Tesla but can nevertheless change Tesla Shares price and valuation. For example, The Boring Company (Elon Musk) not long ago tested its LVCC Loop underground tunnels built under the Las Vegas Convention Center.
The tunnels are about 10 meters deep. Dozens of Tesla cars were used for the tests, including the Model 3, the Model Y, and Model X. The Boring Company claims that these tunnels turn a 45-minute walk into a two-minute ride.
One test ride set a speed record of 185 km/h. At the time of the official launch, the speed will be limited to 240 km/h. So what is interesting about this news in terms of Tesla shares? This news is not particularly useful per se, but some sources assure that the expanded version of the tunnel will fit two shipping containers without problems. Imagine if Tesla had trucks for transportation. The company is already planning to produce trucks. At least that’s the rumor; no one knows for sure. Anyway, the transport revolution is a matter of when not if… and guess which company is most likely going to take over?
The construction of tunnels and the development of autopilot technology create enormous potential for the company’s growth. Even if the company decides not to use tunnels for trucking (for example, if the government deems them unsafe and bans tunnels), Tesla could create a company to transport passengers. Short routes and the latest self-driving cars will leave no chance for traditional transportation such as Uber, Lyft, etc.
Listen to experienced investors.
Expert opinion can help you decide if you have little experience — for example, Michael Burry bets against Tesla.
The businessman is famous for being one of the first to predict the collapse of the real estate and mortgage market, which caused the financial crisis in 2008. Burry made a bet against the American real estate market, earning Scion Capital $ 700 million for investors. Later, his story was the basis for the movie “Down Game.”
Recently, Burry shed light on his bet against Tesla. The investor has previously pointed out that Tesla’s reliance on regulatory loans to generate profits is the company’s weakness. Regulatory credits the company gets from government programs to support renewable energy for producing environmentally friendly cars. Other automakers are forced to buy such credits to offset the carbon footprint of their products and avoid being sanctioned.
However, Michael Burry is also betting against Elon Musk’s company SpaceX: he took a long position in the shares of Vector Acquisition Corp, which presents Rocket Lab to the public and is a direct competitor of SpaceX. Such an approach can indicate an investor’s personal stance as well as a detailed analysis built on facts.
Whether or not to trust the experts is up to you. We advise you to study several sources and decide based on them instead of blindly trusting any single source.
Tesla’s Shares History
It’s important to consider previous performance to make a reliable prediction on Tesla shares.
Tesla’s share price on June 23, 2021, is displayed below:
General analysis of Tesla’s shares
In financial analysis, there is the P/E ratio, the ratio of capitalization to net income. For example, today, Tesla is valued at 1,500 annual profits. In other words, at the current level of earnings, an investment in Tesla will pay off in 1,500 years.
However, the electric car market is constantly expanding, and with it, the company’s revenues are steadily growing. Consequently, the returns will increase, and the payback period will shorten.
Tesla has averaged 42% sales growth over the past three years. Of…
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