A to Z Academy
A to Z Academy / Stock

How To Buy Tesla Stock Now, Price Forecast and Dividend Guide

November 24, 2021 12:43

Tesla stock has been a speculator’s favourite for several years. And to say the least, its investors have been rewarded. Since it began its long-term uptrend in early 2020, Tesla stock has gained more than 720% in just over a year and a half. At its all-time high earlier this year, Tesla’s performance was almost +1000% over 12 months.

Given this stellar performance, the right question to ask is whether Tesla’s share price will continue to rise. As you will discover in this analysis, there is good reason to believe so. Below, we’ll take a look at Tesla stock price and forecast, then explain how to buy Tesla stock easily and quickly.

Tesla Overview

Since going public ten years ago, Tesla, Inc, formerly known as Tesla Motors, has become one of the world’s largest producers of electric vehicles under the leadership of CEO Elon Musk. The company sells electric cars, SUVs and trucks. In addition to electric vehicles, it has expanded into energy production, including solar panels and storage systems. In this regard, it is worth noting that the company develops its own technologies, which gives it an undeniable advantage.

The company’s automotive segment accounts for the vast majority of the Palo Alto-based company’s revenues, with the U.S. accounting for just under half of sales. Tesla faces increasing competition from other major automakers developing electric vehicles, including General Motors Co. (GM), China’s Nio Inc. (NIO), Volkswagen AG (VOW3) and Daimler AG (DAI).

However, as we will discover in this analysis, Tesla has such a strong lead over its competitors that it is almost guaranteed to continue to dominate the market in the future. And, as you’ll also discover in these lines, Tesla’s business is also set to expand far beyond electric vehicles.

en stock trading and price

Tesla Stock Historical Price

Tesla joined the most significant U.S. stock index, the S&P 500, on December 21, 2020. The company is listed on the Nasdaq Stock Market under the symbol TSLA. Tesla’s stock went public in 2010, but really started to explode and attract mainstream attention in late 2019, when it topped $100 for the first time.

Tesla then posted an almost uninterrupted rise until its all-time high of $900 in January 2021. Tesla’s stock has risen 800% in about a year. Since then, Tesla has posted a healthy correction, and current prices may be perfect for a long-term buy. We’ll explain why in more detail later in this guide.

Why Invest in Tesla Share (TSLA) ?

Before we discuss the technical aspects of Tesla stock further, we’ll look at the fundamental factors that argue for a rise in Tesla’s share price.

1 – A Market leader in electric vehicles

Tesla is the world’s largest automaker by market capitalization. It is also the leader in electric vehicles, with a 16% share of the global market.

So despite its current market dominance, Tesla still has room to grow. And its lead over other manufacturers, especially in electric vehicle batteries, ideally positions Tesla for a bright future.

2 – Tesla’s quarterly results have exceeded expectations in the past

The second quarter of 2021 was particularly strong for Tesla. The company posted a 121% increase in shipments on a year-over-year basis, while revenue exploded by 98% over the same period.

But the performance was even more impressive in terms of profits, with Tesla posting a 258% year-over-year increase in net income. This allowed Tesla to post EPS of $1.45, well above analysts’ expectations ($0.98).

3 – A clear lead in terms of autonomous driving

Tesla is only ahead in terms of propulsion and energy storage technology. Indeed, Elon Musk’s company also has a clear lead over its competitors in terms of autonomous driving.

Indeed, its Autopilot software is already in use with more than 1 million vehicles using it. The data collected by these vehicles helps to improve the autonomous driving systems developed by Tesla continuously.

In addition, the company recently announced the upcoming release of its Dojo supercomputer, which will help consolidate its lead in this area. Finally, Elon Musk announced this year that Tesla will produce a fully autonomous electric vehicle for less than $25,000 in the next three years.

4 – A business that will expand beyond EVs

Apart from producing electric vehicles, Tesla sells solar panels, but this only represents a little part of its turnover. In the future, however, it could offer autonomous cab services, which could revolutionize its business.

But Tesla has also recently announced that it is working on a humanoid robot called Tesla Bot, which is supposed to help relieve us of everyday tasks. In other words, Tesla will be much more than an electric vehicle manufacturer in the future.

Tesla Stock Forecast: Will the stock go up?

Since the fundamental outlook for Tesla stock looks positive, let’s take a look at the analyst forecasts and technical analysis of Tesla stock below.

Tesla Stock Financial Forecast

After Q2 results that far exceeded consensus expectations, as we noted earlier, analysts expect Tesla’s key financial metrics to continue to improve. Indeed, for Q3 2021, the analyst consensus expects revenue to grow by more than 12% to $12.93 billion.

On the earnings front, analysts are forecasting EPS of $1.36, lower than Q2. However, it is essential to remember that Tesla has exceeded consensus expectations in terms of profitability for 9 of the last 10 quarters.

Tesla Stock Analyst Forecasts

According to Tip Ranks, there are currently 25 professional analysts following Tesla stock. The majority of them, 12, recommends buying the stock. 6 analysts have a neutral rating. Finally, 6 analysts recommend selling.

The average 12-month Tesla stock price target posted by these 25 analysts is $698, which is very slightly below the current price. However, the least we can say is that the target range is particularly wide for Tesla stock.

Indeed, it goes from $150 for the lowest target, targeted by Morgan Stanley, to $1,200 for the highest target, that of Piper Sandler.

Tesla Stock Technical Forecast

Technical analysis also confirms the bullish outlook for Tesla stock. Indeed, we can see that the share price is supported by an uptrend line since the low of May 19. The moving averages also confirm Tesla’s bullish potential, as the 50-day moving average has just crossed above the 100-day moving average, and is about to cross above the 200-day moving average.

As for targets, the April 14 high of $780 is worth keeping in mind, before the January 25 all-time high of $900. At current prices, a return of Tesla stock to its all-time highs would imply a rise of nearly 30%.

If Tesla shares fall, the first major support to consider will be in the $600 area, before $550. Finally, a very long-term uptrend line has halted Tesla’s decline over the first 3 months of the year.

Where to Buy Tesla Stock

There are many brokers in the market, but some are better than others. In the course of our research, we discovered that ZFX is one of the brokers that displays the most significant advantages.

Established in 2018, this broker is relatively new, but that doesn’t take away from its qualities. Speaking about security and regulation, ZFX is a broker regulated by several financial authorities, including the UK FCA.

As far as the trading platform is concerned, ZFX offers the famous MT4 platform, which has been adopted by millions of traders worldwide. This platform offers all the essential tools for traders. It is also known as the best platform for automatic trading.

Finally, as far as accessible markets are concerned, ZFX offers to buy stocks, commodities, indices, and forex currency pairs.

en stock trading and price

How to Buy Tesla Stock Easily

Buying Tesla stock through the broker ZFX is very simple and fast. Indeed, the account opening is done entirely online, and takes only a few minutes. All you have to do is follow these steps:

  • 1 – Register with ZFX
  • 2 – Verify your ZFX account
  • 3 – Make your first deposit
  • 4 – Buy Tesla stock

Let’s go through each of these steps in detail.

1 – Register with ZFX

For this first step, you will need to go to the ZFX broker’s website, and click on the “open an account” button. You will then have to fill in a registration form with several personal details, including your phone number, which will be verified by SMS.

Trade Walmart - Step 1

After filling out the form, click on the “next” button at the bottom of the page.

Immediately after this step, ZFX will display your MT4 login and password, and invite you to download the platform. You will then need to make your first deposit.

MT4 Login

2 – Make your first deposit

To do this, you will need to click on the “make a deposit” button on the screen displayed immediately after registration.

You will then need to choose a payment method. Let’s take Mastercard as an example:

trade Facebook stock with ZFX - Step 3

On this screen you will need to indicate the deposit amount and then click on the “Confirm Deposit” button. You will then have to provide your credit card information before the final validation of the payment.

3 – Account verification

Finally, it will also be necessary to proceed with the account verification by sending supporting documents.

trade Facebook shares with ZFX - Step 4

As shown in the image above, you will need to upload the documents directly to the ZFX website. Once ZFX validates your documents, you will then be ready to buy Tesla stock.

4 – Buy Tesla stock

You’re now ready to invest in TSLA. You simply need to download MT4 and login using the username and password provided by ZFX. Once logged in, you will find Tesla stock under its symbol TSLA. Select it, set up your trading terms and start investing as you wish.

Bottom Line : Should you buy Tesla’s Stock?

Tesla stock is a wise investment for several reasons. The most important is that it is the best stock in the electric vehicle sector. This sector is set to explode over the next few years. Indeed, many governments have set ambitious objectives in terms of ecology. This mainly involves the total replacement of conventional vehicles by electric vehicles.

In addition, Tesla is also developing activities in other areas, which will eventually allow it to diversify and expand its revenue base. Most analysts are convinced of Tesla’s stock potential, as we have pointed out in this guide. More importantly, technical factors indicate that Tesla’s current share price could be ideal for a long-term investment.

If you too would like to take advantage of this opportunity, you will need an online broker. In this regard, ZFX is among the best choices for all the reasons we’ve explained in this guide. We invite you to learn more about this broker right now.

en stock trading and price

Knowledge is POWER
Never miss an opportunity to learn and grow as a trader. Join the ZFX Academy mailing list to be the first to know about our next webinar, article or guide.
Contact Us