Tesla Stock Investing - Tsla Investing
Following today's market closure, Tesla (TSLA) issued its financial results and shareholders letter for the third quarter of 2022. All the information from the financial results, shareholders' letter, and conference call later tonight will be updated in this post. For the most recent information, refresh.
Tesla's expected third-quarter (Q3) 2022 earnings
We published our Tesla Q3 2022 earnings preview with Wall Street and user-generated forecasts yesterday. Wall Street expected $22 billion in revenue and $1 per share in earnings for this quarter. These would be new milestones for Tesla as a result of the record-breaking 343,000 electric vehicle deliveries made during the quarter. At the conclusion of the quarter, the carmaker had over 20,000 automobiles in transit, which hurt profitability.
Tesla Q3 2022 financial results
Tesla announced its financial results shortly after the market closed today, confirming that while revenue fell, it was able to meet forecasts for earnings. The automaker announced earnings per share of $1.05 (Non-GAAP versus $1.00 predicted by Wall Street) and revenues of $21.5 billion (about $500 million less than Wall Street expected). Tesla produced record sales, operational profits, and free cash flow, however its stock (TSLA) is down 5% in after-hours trade, reportedly as a result of the revenue shortfall.
The automaker grew its cash balance to a record $21 billion last quarter and generated operating free cash flow of $3.3 billion. Tesla's automotive gross margin, which is the proportion of profit on sales of new automobiles, is one of the most crucial measures. This quarter, it remained at 27.9%, which is high for the automotive sector.
How to Invest in Tesla With Index Funds
Any single stock, including Tesla, can be an extremely risky investment. By diversifying your investment assets, you can reduce the possibility that you will experience extreme highs and lows. According to Valerie Rivera, a certified financial advisor, an index fund is the "easiest method to diversify your portfolio" because it has hundreds or thousands of various equities (CFP).
TSLA makes up roughly 1.5% of the S&P 500 at the moment, which means that 1.5% of your investment in an S&P 500 index fund goes to Tesla. A Nasdaq index fund, where Tesla makes up nearly 4% of assets, would be a good option if you want an index with even more TSLA exposure.
How to Sell Tesla Stock
When you're ready to sell your Tesla stock, visit the trading platform of your brokerage and enter the quantity of shares or the selling price you desire. Depending on whether you want to sell now at the current price or wait for a specific price, you may also choose an order type here. Except if you're selling shares held in a tax-advantaged account, you'll probably have to pay taxes if you sell your shares for more than you paid and make a profit—a situation known as capital gains.
How to Buy Tesla (TSLA) Stock
1. Open a brokerage account, first
Your key to buying and selling securities, such as stocks, mutual funds, and exchange-traded funds, is opening a brokerage account (ETFs). However, a brokerage is more than just a way to ride TSLA to the moon. Additionally, it offers all the information and training you need to become a successful investor, as well as several types of investment accounts created for specific objectives. Use a tax-advantaged individual retirement account if you're investing for retirement (IRA). Uncle Sam offers tax incentives for this kind of account, which could accelerate the growth of your money.
A taxable brokerage account is what you need if you want greater flexibility with your investment account, such as if you want to start saving for your own Telsa in the near future. These allow you to invest for any goal or duration, but every time you sell an investment for a profit or receive dividend income, taxes must be paid. Since not all brokerages are made equal, it's important to examine the costs, investment options, and services provided by at least a handful before choosing the best one for you. You can also look through our selections of the top online brokers.
2. Select the Investment Amount
You most likely can't give Elon Musk your entire paycheck. To determine how much you can afford to invest in TSLA, you'll need to ask yourself a few questions. How much can you spend? You are free to save and invest any remaining funds after covering all of your monthly costs. If you don't already have one, you should put at least some of that money into retirement savings and an emergency fund.
However, you can use the remainder to make other investments, like Tesla. What is the current cost of TSLA? Although stock prices are always subject to change, Tesla's stock price has remained above $400 per share for the previous 12 months. As a result, you might not be able to purchase a whole share of TSLA quite now. Fortunately, certain brokerages, like Charles Schwab, Robinhood, Fidelity, and Stash, allow you to purchase fractional shares, which are small amounts of stock.
What is your approach to investing? The two major ways that most people choose to invest are either with a huge sum all at once or with tiny amounts over time. Dollar-cost averaging, the latter technique, may help you spend on average less per share over time while lowering your risk.
How are your other investments doing? If you currently invest, you should consider how Tesla fits into your overall investment strategy. The ordinary investor's portfolio should only contain a small number of individual stock purchases, according to Chip Workman, a certified financial planner (CFP) with The Asset Advisory Group. "No single stock should constitute more than 5% of a portfolio," is a wise maxim.
3. Examine Tesla's Capability and Performance
It is advisable to do some research on the company's finances, performance, and forecast before purchasing Tesla stock—or any stock, for that matter. Reading through a company's annual reports (Form 10-K) and quarterly reports is the simplest way to get started (Form 10-Q). Public firms like TSLA are expected to make comprehensive financial health disclosures in these. These can be located on the Securities and Exchange Commission's (SEC) database or on Tesla's website for investors.
4. Select the Order Type and Submit It
You can purchase your first shares of Tesla once you've determined how much you want to invest. You must sign into your brokerage account and input the ticker symbol (TSLA) for Tesla as well as the quantity of shares or cash you wish to purchase. You can purchase shares using a straightforward market order at the current price, or you can use a more complex order type, such as limit or stop, to only buy TSLA if its price drops below a specific level. You can purchase Tesla from 9:30 am to 4:00 pm ET, Monday through Friday because it is traded on the Nasdaq exchange.
5. Assess Your Investment
It's a good idea to keep track of your investments' performance, whether you invest in Tesla or other assets. Starting with annualized percent return is perhaps the simplest option. In this manner, you may evaluate TSLA's performance over the course of a year in comparison to other businesses or investments. You can check Tesla's financial data once more to make sure things are still going well.
You might also want to evaluate TSLA's performance in relation to sector benchmarks like the S&P 500 and Nasdaq Composite Index in addition to comparing it to that of other equities. This will show you how Tesla is doing in relation to the entire market.
Note : Always check TSLA chart here TSLA Chart
