An investor’s guide to buying Tesla stock

Tesla Inc. (TSLA:US) has been one of the most closely watched companies in global markets for several years. It’s synonymous with electric vehicles, energy storage and bold innovation, so here’s everything you need to know about how to buy Tesla shares and how to invest in Tesla stock in Australia using CMC Invest’s tools and educational resources. 

What is Tesla? 

Founded in 2003 and now headquartered in Austin, Texas, Tesla is a global electric vehicle (EV) and clean-energy company. Its product set spans premium EVs – Model S, Model 3, Model X, Model Y and the Cybertruck – as well as energy storage solutions (Powerwall, Megapack) and solar products. 

Tesla designs vehicles and energy systems that integrate hardware, software and over-the-air updates. The company also operates an expansive Supercharger network to support long-distance EV travel and continues to explore autonomous driving capabilities via its driver-assistance software stack. 

Why invest in Tesla stock? 

Financial performance and market presence 

Tesla generates revenue across automotive and energy segments and is widely seen as a ‘first-mover’ in EVs. While past performance is never a reliable indicator of future results, many investors track Tesla due to the strength of the brand, a growing installed base and ongoing cost-cutting efforts in manufacturing and supply chains. 

Technological innovation 

Tesla invests heavily in battery efficiency, power electronics, software and on-vehicle computer technology. Its driver-assistance features and ambition towards higher levels of autonomy keep it at the centre of debates around the future of AI and robotics. 

Diversified revenue streams 

Beyond vehicle sales, Tesla’s energy storage (Powerwall, Megapack) and solar businesses contribute an additional source of revenue. A wide range of potential services have also been floated in the past, including autonomy-related offerings (e.g. future ‘robotaxi’ concepts), which – if realised – could diversify earnings even further. 

Global infrastructure and scale 

Tesla operates ‘gigafactories’ in locations including New York, Berlin, Shanghai and more, alongside a rapidly expanding Supercharger network. Having such a large footprint can help logistics and underpin delivery capability across multiple regions. 

Investors should be aware that none of the above is a recommendation or advice on how share investing works. You’ll need to consider whether TSLA aligns with your long-term goals and risk appetite. 

How to buy Tesla stock in Australia: Step-by-step guide 

If you’re ready to learn how to buy Tesla stock, here’s how to get started: 

1. Open an account with CMC Invest: Get started and start investing. CMC Invest is a user-friendly platform with complete access to Australian and international shares. You can learn more about stockbroking and international shares on the platform. 

2. Research Tesla: Take a proactive approach to the risks of investing. Research Tesla’s recent results, delivery trends, pricing, competition, supply chain, energy-segment progress and the regulatory landscape at large. 

3. Decide your approach: Will you make a lump-sum order or build up a strong position over time with an investment plan? Consider factors like position size, portfolio diversification and whether TSLA meets your investment objectives (growth, total return, etc.). 

4. Place your order: Search ‘TSLA’ on the platform, then decide on either a market or limit order type. Enter your quantity and hit submit. For guidance on researching and placing an order, watch our CMC Invest video. 

5. Monitor and review: Once your order is placed, you’ll be able to track your holdings and assess any corporate actions. Make sure you take some time to look at your goals every once in a while, especially after earnings reports and product updates. Also, remember that if you’re new to US markets, you’ll need to be aware of time-zone differences and how AUD/USD conversions could impact your returns. 

When you’re comfortable with the process and know how share investing works, you’ll have mastered the art of how to buy Tesla shares and be able to manage them alongside your other investments. 

Risks and considerations when buying Tesla stock 

Market volatility 

Tesla’s share price can move quickly on delivery numbers, margin updates, pricing changes, production ramps, macro factors (rates, consumer sentiment) and sector rotations. Large positions in individual companies can raise your portfolio’s volatility. 

Investment goals and portfolio fit 

Think about whether TSLA’s growth profile, cyclical drivers and valuation align with your own investing goals. Having a more diverse portfolio could suit your risk appetite better, while also allowing you to create a position that won’t derail your strategy if conditions should change in future. 

Regulatory and legal risk 

EV subsidies, emissions rules, safety testing, autonomous-driving regulations and trade policy can all influence demand and pricing. Changes in law or enforcement can also impact operations and market outlooks. 

Exchange-rate risk (AUD/USD) 

TSLA trades and reports earnings in US dollars, so keep that in mind when translating financials back to Australian dollars. Forex can also influence Tesla’s reported revenue and margins across different regions. 

Competitive dynamics and execution 

EV markets continue to attract competition – from incumbent automakers and new entrants – while battery supply and raw-material prices have an effect on profitability. Execution against delivery targets and new-model timelines should be one of your biggest watchpoints. 

Next steps

Tesla’s brand strength and clean-energy ambitions keep it central to conversations about the future of mobility and power. However, by the same token, you should recognise the risks before deciding whether TSLA belongs in your portfolio. 

Start investing in Tesla shares today with CMC Invest by opening an account. 

This article provides general information only. Past performance is not a reliable indicator of future results. It is not to be construed as a solicitation or an offer to buy or sell any financial instruments, or as a recommendation and/or investment advice. It does not intend to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any financial instruments. CMC Invest believes that the information in this article is correct, and any opinions and conclusions are reasonably held or made on information available at the time of its compilation, but no representation or warranty is made as to the accuracy, reliability or completeness of any statements made in this article. CMC Invest is under no obligation to, and does not, update or keep current the information contained in this document. Neither CMC Invest nor any of its affiliates or subsidiaries accepts liability for loss or damage arising out of the use of all or any part of this document. Any opinions or conclusions set forth in this article are subject to change without notice and may differ or be contrary to the opinions or conclusions expressed by any other members of CMC Invest.