It sometimes happens that companies gain in popularity owing to their charismatic chief executives. Carmaker Tesla is definitely one of such firms. It is perhaps one of the most talked-about projects of the 21st century. Tesla founder and CEO Elon Musk is definitely a reason behind the company’s success. So, how did the engineer conquer the world? Firstly, it is his innovative business approach. Secondly, these are his endlessly daring experiments with production processes that always attract investors from all over the world. Today, thanks to Musk's ingenious solutions, society stands on the verge of revolutionary changes in the automotive and aerospace industries.

At the same time, Elon Musk himself has become so famous that he is now often compared either with Tony Stark, the comic book hero, or with well-known inventor Henry Ford. So, it comes as no surprise that the brainchild of this talented engineer - Tesla - has eventually turned into a popular brand. Today, you have a chance to get an insight into this electric vehicle and clean energy company and find out how to invest in it. Welcome to the captivating and exciting world created by genius Elon Musk!

About Tesla

Tesla Inc., formerly known as Tesla Motors, was founded in July 2003. The founding fathers of the company were Martin Eberhard and Marc Tarpenning. However, the current management team names Elon Musk, Ian Wright, and Jeffrey Brian Straubel the creators of Tesla.

The company specializes in the production of electric vehicles and the creation of innovative engineering solutions aimed at storing electrical energy.

Tesla's key products today are premium cars that are mainly acquired by young people who have achieved significant success in business. The brand’s electric cars can hardly be called budget products intended for representatives of the lower or middle classes.

Another tangible proof of Tesla’s success is the fact that its cars are in no way inferior to vehicles made by its famous competitors BMW and Porsche. Moreover, Musk's electric vehicles have certain advantages over popular cars run on gasoline, including:

  • engines with silent operation
  • spacious passenger area
  • fuel economy
  • high build quality

In October 2021, at a regular shareholder meeting, Elon Musk announced that Tesla's headquarters would soon be moved from Palo Alto, California, to Austin, Texas, due to the fact that the company had nearly outgrown the Fremont Factory and needed to relocate to have better opportunities for growth.

Apart from the main legal entity, the US issuer runs a variety of subsidiaries in Germany, Canada, and several US states.

The company’s subsidiaries provide full support to owners of products manufactured at Tesla factories, as well as help boost sales of vehicles around the world.

Tesla does not cooperate with car dealers and prefers to sell its electric vehicles by means of its own website. Owing to this fact, the carmaker is fully responsible for delivering products to customers, which allows the company to conduct a single marketing campaign.

Despite a well-thought-out marketing strategy and the move to popularize the use of green electric vehicles, Tesla is incurring losses today. However, this fact does not spook investors at all, since global car sales continue to grow rapidly.

Interesting fact: Tesla is named for well-known physicist Nikola Tesla.

Tesla stock

Tesla held the initial public offering (IPO) in 2010 on the NASDAQ stock exchange under the TSLA ticker symbol*. On the day following the IPO, Tesla stock soared by 23%.

The electric vehicle manufacturer announced a five-for-one stock split* in late August 2020 and an additional $5 billion emission of shares in September of the same year.

If you decide to invest in Tesla Inc., you should open a trading account with a brokerage company that has access to large global stock market floors, including the NASDAQ exchange. It usually takes just a few minutes to open it. For instance, it will take only 3 minutes to register an account with InstaForex.

The minimum trade size is 1 lot, which equals 1 share of the company. To calculate your profit, you can use Trader’s Calculator on the InstaForex website.

Then, feel free to start selling and buying shares of Tesla or any other popular companies. The MT4 trading platform from InstaForex, favored by all traders, will become your perfect assistant in trading.

When trading the company's stock, it is important to pay attention to the following aspects:

  • study relevant US economic statistics. Traditionally, on the eve of the release of important data, stock grows more volatile.
  • always analyze the current state of the automotive industry in the global market.
  • monitor forecasts for the development of innovative and promising technologies in the field of renewable energy generation and storage.

*Ticker is an abbreviation of trading instruments quoted on the exchange.

*Stock split is an increase in the number of shares that are outstanding by dividing existing shares.

Track changes in Tesla’s quotes and charts online on the InstaForex website.

Dividends

Tesla does not make dividend payments to shareholders. All of Tesla's net profit goes to research and development, as well as the expansion of production.

The company's management team does not plan to pay dividends to shareholders in the future, analysts say. This fact makes Tesla stock a less attractive and less volatile investment instrument. So, changes in value are the only source of profit for holders of Tesla stock.

Future prospects

Tesla plans to launch new production facilities in Europe and China in the near future. The construction of charging stations in China has long been in full swing. Meanwhile, the European Union wants to ban the production of internal combustion engines by 2030.

The move will help reduce logistics costs for consumers in Europe and Asia, as well as allow the company to bring down the cost of electric vehicles.

At the same time, skeptics who do not believe in the development of the electric vehicle industry urge investors to treat Tesla with the utmost caution, citing the burst of the dotcom bubble in 2000. Back then, amid the hype around future technologies, investors put in their money in projects that never brought any profit. Analysts compare it with growing global sales of Tesla products.

More optimistic market experts suggest Tesla Inc.’s stock could soon reach a market capitalization of the same level as global giant Apple has. Such forecasts are based on the growing popularity of the company among buyers of environmentally-friendly vehicles. Today, both the United States and Europe have enough charging stations. Meanwhile, in Japan, their number exceeds regular filling stations.

Read all the up-to-date information about Tesla and the global automotive industry online in a special analysis section on the InstaForex website.

Conclusion

Today, Tesla Inc. has sufficient resources to go through any crisis, which could result in a rather insignificant decrease in its stock. The corporation’s stability makes Tesla stock an attractive instrument for investment and trading.

Amid a steady development of the electric vehicle market and optimistic long-term forecasts, Tesla Inc. is expected to show further growth. Above all else, experts recommend that investors include its stock in their long-term portfolios.

If these facts have made you think it is time to invest in Tesla, go to the InstaForex website and open an account. It will take you only a few minutes to register.