Tesla Stocks: Should You Buy and Trade?
Tesla is a well-known company. It’s famous for its outstanding, high-tech products. When people hear Tesla, they think about something modern, going to the future. At the same time, the Tesla company is known for the provocative statements of its founder and CEO, Elon Musk.
The company’s stocks are an excellent investment, you should consider. Why? Keep reading to learn Tesla’s secrets.
Tesla Motors: How It Started
Tesla Inc. was founded by Marc Tarpenning and Martin Eberhard in 2003 as Tesla Motors. The main idea was to produce electric sports cars. Lots of Tesla investors evaluated the company’s approach and put their money in it.
One of them was Elon Musk, who invested more than $30 million. He became Tesla’s chairman in 2004. By 2009, both founders left the company, and Mr. Musk became the CEO.
In 2008, the company created a Roadster sedan. It was the first car that was fully electric and could compete with petrol cars. For years, the company had been developing its car versions.
In 2012, it launched fast-charging facilities for users of Tesla. As the company started focusing not only on cars, it was renamed to Tesla Inc in 2017. In 2018, the company entered the market of solar energy.
Is Tesla a Reliable Investment?
Tesla entered the stock market in 2010. Since June 29, 2010, the company has been listing on the Nasdaq Stock Exchange under the ticker TSLA. Tesla Motors became the first US car manufacturer that entered the stock market since 1956 when Ford Motor Company went public.
Usually, stocks of car producers are stable. If we consider a chart of Tesla shares, we will see they are highly volatile. The company’s stocks strongly depend on the quarterly earnings reports, Musk’s announcements, and products’ releases.
We all know that Twitter is a place of provocative news, tweets, and information that increase market fluctuations. In 2018, the company’s stocks skyrocketed, and the NASDAQ had to halt them after Elon Musk tweeted about the willingness to take Tesla private at $420. The most paradoxical thing is that the information wasn’t confirmed but was released as a tweet.
On May 1, 2020, the stocks plunged after Mr. Musk tweeted he thought they were too high. The shares lost nearly 12% within 30 minutes.
Mr. Musk is a famous Twitter lover. Thus, if you want to succeed in dealing with Tesla shares, subscribe to his Twitter page.
Thus, Tesla stocks are an excellent option for those traders and investors who feel comfortable in highly volatile markets. At the same time, the shares are not expensive. The highest price they have reached was just above $1000.
How to Reduce Risks Dealing with Tesla Shares
In general, stocks are risky assets, but Tesla stocks bring even more risks to traders and investors. There are several rules that will help you prevent possible losses or at least reduce them while trading Tesla stocks.
- Analyze the market. As we mentioned above, there are several analyses approaches you can use to predict market direction.
- Practice. There is nothing better than practice and learning from your own mistakes. However, to not lose your money, you should open a demo account. Libertex offers this option.
- Choose a trustworthy broker. No matter how well you analyze the market, if your broker is dishonest, you will lose. Check the terms and conditions, a law under which the broker provides its services, and the platform you will use while trading.
To conclude, Tesla stocks suffer high volatility as it is quite a young company compared to its blue-chip counterparts. Thus, if investors or traders want to deal with these shares, they should be careful and follow money management. At the same time, Tesla offers exciting opportunities, especially for traders who are eager to catch sharp market fluctuations. Moreover, the price of stocks is low compared to blue-chip enterprises.
To learn how Tesla stocks move on different timeframes, use a Libertex demo account that reflects the real market conditions, and provides the full range of indicators you can use to predict the direction of Tesla stocks.