Introduction

How to buy Tesla stock? Tesla is getting close to the margins for luxury cars. For this, it should be valued more like Ferrari, which is worth 35 times earnings, than General Motors, which is worth six times earnings, or Toyota, which is worth 8.6 times earnings. Even though Tesla is worth 90 times its earnings, it could reach that level if it keeps growing.

Management also gave shareholders some good news: it plans to increase the number of vehicles it delivers by 50 percent each year over several years. Using this forecast to determine how sales will grow and keeping Tesla's 17.7% profit margin, the company could make $14.9 billion by the end of 2022. It means that Tesla trades for 49.5 times its expected earnings for the whole year of 2022. It is not a bad price for a corporation that expects to grow by about 50% over the next few years.

Tesla fans are very loyal, whether they like Elon Musk or just like how his company's cars look and run. It's easy to understand why: Tesla (TSLA) is a big industry disrupter in many ways, from cars with a mode to protect against bioweapons to solar roofs.

That has led to some very good returns on investments. According to Tesla's most recent earnings report, the company's sales are up a huge 98 percent from last year, and its price went up almost 80 percent from last year.

Open a Brokerage Account

Opening a brokerage account lets you buy and sell stocks, mutual funds, and marketplace funds (ETFs) (ETFs). A financial services company is more than your pass to ride TSLA to the lunar. It also has all the education and research you want to be a successful investor and further savings and investments made for different goals.

Individual retirement accounts (IRAs) are the way to go if you want to save for retirement (IRA). Uncle Sam gives tax breaks to this type of account, which can help one's money grow sometimes faster.

If you want more freedom with your investment account—for example, if you want to save up for a Tesla in the next few years, actually want a subject-to-tax brokerage account. You can invest in these for any reason or length of time, but you'll have to pay taxes every time you sell an incentive to invest for a profit or get income from dividends.

Tesla is not Your Typical Automaker

How does Tesla make so much more money than traditional automakers? First of all, it got rid of the middleman. Tesla doesn't have to share the profits with dealers because it sells directly to customers. Many people don't like this way of doing business, but it's very good for Tesla.

It is also only about electric vehicles (EVs). No matter how you feel about electric vehicles, it's clear that the auto industry has moved toward them. The big automakers are still a couple of years away from making all-electric cars, but Tesla is moving full speed ahead. It's getting a head start and getting a lot of customers while other companies are still making prototypes or just starting to ramp up production. Also, Tesla's four production models, the 3, S, Y, and X, are currently ranked next, quarter, fourth and tenth by Consumer Reports as the most satisfying cars.

An All-Electric Future

The revolution of electric vehicles (EVs) is real. There's no doubt that governments worldwide want to see a future with a lot more electric vehicles on the road. Some places have already said they won't sell new gas-powered cars after 2035. As the leader in the field, Tesla is sure to get something out of it. It doesn't just mean money from the government but also investments in infrastructure and support from the general public.

So far, people have been a little slow to accept the toggle to EVs. But people's views are slowly but steadily changing. Today's electric vehicles can do much more than 10 or 15 years ago. Charging stations are all over the place. And most importantly, buying an electric vehicle will save many people money over the long term. It is all good news for a business like Tesla.

Conclusion

Tesla is an American company that makes electric cars and clean power. Its headquarters are currently in Mountain View, California, but there are plans to move them to Austin, Texas. The company designs and makes electric cars, solar panels and roof tiles, batteries that store energy, from small ones you can use at home to huge ones that power the whole grid, and much more. Once you've decided how much you'd like to put into Tesla, users could buy your first shares. You'll need to log in to your brokerage account and enter Tesla's ticker symbol (TSLA) along with the number of shares you want to buy or the amount of money you want to invest.