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Are you having trouble figuring out how to buy Tesla stock in Canada? Don’t worry, this is a difficulty that many people confront.
Many Canadians opt for do-it-yourself stock trading rather than paying a broker to manage their investments.
This development has been aided by the rise of internet investment providers such as Questrade and Wealthsimple.
This post will go through how to buy Tesla stock in Canada in detail. From a general Tesla assessment to typical online trading options, we’ve covered it all.
Tesla (TSLA) is a major automaker established in the United States. After a prior close of $977.2, it opened the day at $1075.6. The price fluctuated during the day, from a low of $996.4399 to a high of $1090.5.
The most recent cost was $1008.78. (25-minute delay). Tesla is a NASDAQ-listed company with a workforce of 99,290 people. All of the pricing is in US Dollars.
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Tesla’s Brief History
Tesla Inc. was founded in 2003 by two American entrepreneurs, Marc Tarpenning and Martin Eberhard. tesla Inc. was originally known as Tesla Motors until 2017.
It was named after the legendary inventor Nikola Tesla, who was the inspiration for the company.
It was the pair’s intention to create and produce electric sports automobiles, starting with the ground-breaking Roadster sedan, which debuted in 2008.
A variety of sources provided Tesla with its original investment, with Elon Musk, the co-founder of PayPal, contributing more than $30 million to the enterprise and serving as the company’s chairman from its founding in 2004 being the most famous.
Eberhard stepped down as CEO and President of Technology at the end of 2007 to become a member of the company’s advisory council. They stated in 2008 that he had stepped down as CEO of Tesla, but that he had remained a stakeholder.
Tesla Autopilot, a semi-autonomous driving feature, was first launched on the Model S in 2014. A crossover vehicle with SUV characteristics, but with a car chassis, was introduced by Tesla in 2015. The Model X was introduced in 2015.
Beginning in 2012, the business began developing free-of-charge, rapid charging stations for Tesla customers in the United States and Europe, which it named Superchargers. These stations are now available throughout the world. Tesla Stations are later models that could be used to replace the battery array on the Model S.
In 2018, the company expanded its product line to include the production of renewable energy gadgets and batteries. With the acquisition of SolarCity, a firm that makes solar panels in 2016, it further demonstrated its commitment to this industry sector.
Tesla Motors was renamed Tesla Inc. in 2017 to reflect the fact that the company no longer solely marketed automobiles and other products.
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Evaluation of the Tesla Motors Corporation (TESLA)
In terms of accumulation and distribution, it gets a C+. This ranking takes into account changes in the price and volume of a stock over the last 13 weeks of trade. A grade of A indicates that there is a significant amount of institutional buying taking place.
The lowest possible rating of E indicates that there is a great deal of selling taking place. It is reasonable to consider a C grade to be impartial.
Tesla is represented by the ticker sign “TSLA.”
Since reaching an all-time high in late January, the relative strength line has been drifting lower but has lately reached a plateau.
The relative strength line compares the strength of stock to the overall strength of the S&P 500 index. The RS line is displayed as a blue line on the map to indicate its location.
The RS line of the most powerful stocks is typically either positive or negative in nature.
A stock’s price is frequently confirmed by the RS line of the strongest stocks, or it is leading the stock price into the new high territory.
In the stock market just like Tesla Stock in Canada, timing is everything. Consequently, while looking for stocks to buy or sell, it is necessary to undertake both fundamental and technical analysis in order to identify lower-risk entry opportunities with high potential rewards, and vice versa.
How to Buy Tesla Stock in Canada (Performance of Tesla’s Stock Price):
In order to buy Tesla Stock in Canada, it is important to note that The stock price of Tesla has climbed considerably in the last two years as a result of the company’s recent successes.
The stock ended the year at a price of approximately $400. While the stock was trading at a low point of $2,000 in June 2020, it was trading at a high point of $4,000 at the time. Prices are now around $700 at this time.
The stock of Tesla may appear to have dropped by about 50% since June 2020, but this isn’t the reality. Tesla made the decision to split its stock, resulting in each shareholder obtaining an additional 5 Tesla shares for every Tesla share they held before the split.
It was the stock’s price that had grown excessively that prompted this course of action. As previously stated, high prices discourage individuals with little financial resources from making investments.
When it comes to investing in a company, share splitting is similar to fractional shares and exchange-traded funds (ETFs), in that it allows a larger number of people to invest at lower costs.
Although stock splits have no effect on the value of a company, investors should be aware of this fact.
To buy Tesla stock in Canada, you simply need to follow the steps outlined below.
Step 1: Account Opening:
To purchase Tesla shares or any other stock, you must first open an account with a broker. Brokers provide a link between you and the market, enabling you to place and receive deals. What you should be searching for is something like this:
Trading without having to pay any fees: Trading without having to pay commissions on trades is needless. The availability of free trading platforms such as Uphold and huge brokers like TD Ameritrade has made it possible.
Trading stocks in fractions: The price of a single Tesla stock puts it out of reach. In order to participate in the price movement of Tesla stock, you may purchase fractional shares. By doing so, you can diversify your portfolio while also participating in the price movement.
A virtual trading account that allows you to practice with virtual money is available here: Seek out brokers who will allow you to try out their platform before committing to a long-term relationship. This is a function that Interactive Brokers, for example, provides, which is not common in the current crop of investment applications.
Reduced account fees: Inactivity fees, account fees, and transaction fees are all items to look out for when opening a new account. Choose a broker who is prepared to provide you with the best possible pricing for your transaction.
The ability to trade on margins: Margin trading allows you to increase the amount of money you have in your account by using borrowed funds.
A leverage ratio of 6:1 means that if you have $500 in your account, you may use it to trade $3,000 in TSLA stock.
Keep in mind that if the value of Tesla’s stock drops, you may be required to contribute an additional maintenance margin to cover the loss in value.
Margin trading is not suggested for newcomers due to the inherent risk they will face.
In addition to the ability to view charts, real-time data is also available: Charts are available on all trading platforms; however, the data displayed on them is often delayed by up to 15 minutes. A modest subscription fee can be obtained from brokers in exchange for real-time data.
In order to purchase shares of Tesla stock, create an account with your broker and fund it using a wire transfer or debit card transaction.
Keep in mind, however, that your first deposit and withdrawal may take up to two weeks to display in your account after you make them.
Before your account can be opened, the broker will need to validate your personal details, which could take up to two weeks.
step 3: Decide how much money you’re going to put into the venture:
Consider the following scenario: You learn that you are about to lose all of your hard-earned money in a single day. As a result, it’s generally not a good idea to invest all of your hard-earned money in a trading account.
Begin with a tiny investment that you can live without for a short period of time. Trading is a skill that requires time and practice to master, just like any other.
In contrast, putting all of your money on the line while you are a newbie trader is a dangerous move. When it comes to risk management, maintain your composure and remain objective.
Step 4: A Stock or an ETF is the Next Logical Step:
Tesla stock can be purchased as a stand-alone asset or as part of an exchange-traded fund (ETF) that includes securities from a variety of different firms, depending on your preferences.
Trading in exchange-traded funds is less risky than trading in individual stocks because it shields investors from the big price volatility that can occur in a single stock.
A professional asset manager controls the selection and performance of the ETF equities, dispersing your risk across a diverse group of stocks in a weighted basket of stocks. ETFs are an excellent choice for first-time investors.
Several exchange-traded funds (ETFs) have exposure to Tesla, including the Invesco QQQ Trust, the SPDR S&P 500 ETF Trust, the iShares Core S&P 500 ETF, the Vanguard S&P 500 ETF, and the ARK Autonomous Technology & Robotics ETF. Tesla is represented by the symbol TSLA.
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Step 5: Configure Your Order:
After deciding on the most appropriate vehicle for your company, it’s time to place your order.
In the market:
Using a market order, you can purchase Tesla shares at the lowest available price in the order book at any time throughout the trading day.
Due to the length of time, it takes to execute this type of transaction, there is a difficulty with this type of order.
A mistake has been committed if you purchase at $600 but the broker only fills you at $610.
The term “slippage” is used to describe the extra $10 that was received.
If you use a limit order, you will not be able to absorb fill slippage. A limit order will be entered into the system to fill you at this price. For experienced day traders, this is the best option available to them right now.
When your transaction achieves your profit target, the stop-limit order permits you to profit from the transaction.
Consider the following scenario: you purchase Tesla stock for $600 with a target price of $630. If your stock hits that price, your broker will sell it on your behalf.
This order type is crucial for inexperienced traders since it allows them to reduce their risk exposure while trading. Based on your risk tolerance level, your stop-loss order should be placed at US$600 and your take-profit order at US$580.
If the price falls to this level, the broker will close out your trade, in order to avoid you from incurring an untenable financial loss.
Step 6: Place Your Order:
You are now ready to place an order on your broker’s trading platform, which has been configured to your specifications.
Your platform will include fields for the ticker, limit price, stock size, and order type, among other things.
When you’re ready to make a purchase, fill out the necessary fields and click the “Buy” button.
Step 7: Monitor the price of Tesla’s stock:
Tesla stock prices change in response to earnings releases. Market developments such as lithium-ion market restrictions or news of tragic car accidents involving drivers who were using autopilot may have an impact on the pricing, although it is unlikely to be significant.
Because Tesla CEO Elon Musk routinely tweets about the company’s stock, the price of the company’s stock fluctuates in response to his tweets.
In response to Musk’s tweet, which stated that he intended to take the firm private at a price of US$420 with “financing secured,” the stock jumped 14 percent intraday.
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What are the Risks of Investing in the Stocks Industry? (Buy Tesla stock in Canada)
Before one can invest in the Stocks Industry, one has to know the risks involved. Here they are;
Whenever they assign a number to an organization, they run the danger of losing that number. Every business has a key number when it comes to credit rating.
When it comes to the cost of funding, the credit rating of a company is extremely important.
There is another statistic that publicly listed companies must consider that is just as significant, if not more important than their credit rating. This figure is the market capitalization.
In this case, it is the analysts’ rating, and any changes in the analysts’ rating on a stock appear to have an outsized psychological impact on the stock market.
It is common for these rating movements to result in swings that are significantly greater than what is justified by the events that prompted the analysts to adjust their ratings.
The detection risk refers to the likelihood that an inspector, enforcement program, regulator, or other authority will fail to notice the bodies buried in the backyard until it is too late to do anything about it.
If it is the company’s management who is moving money out of the company, whether it be falsely declared earnings or some other sort of financial tricks, the market will come to its senses as soon as the news hits the media.
Unless there is a high level of identification risk, any damage to the organization’s reputation could be difficult to repair, and the company may never recover if the financial crime was widespread (Enron, Bre-X Minerals, among others).
Commodity Price Risk:
Quite simply, commodity price risk is the risk that a change in commodity prices will have an adverse effect on the company.
In general, commodity sellers profit when prices rise, but they suffer when prices decrease. Those businesses that rely on goods as inputs suffer from the converse effect.
Commodity risk has an impact on businesses that have nothing to do with commodities in their operations. As commodity prices rise, customers reduce their spending, which has a cascading effect throughout the economy, including the service sector.
The chance that a company’s market may become extinct is referred to as obsolescence risk. Only a small percentage of businesses live to be 100 years old, and none of them do so by continuing to utilize the same business practices that they used when they first started out.
The greatest danger of obsolescence is that someone will figure out a method to create a similar product at a cheaper cost than what is now available.
It is likely that the risk of obsolescence will increase as global competition becomes more technologically adept and the information gap closes.
It is possible that the assumptions underpinning the economy’s economic and commercial models are inaccurate, which is known as model risk.
When models become out of whack, the companies that rely on them suffer as a result of this.
Because of this, certain businesses struggle or fail, putting a strain on the businesses that rely on them, and so forth and so forth.
Mortgage delinquency during the period 2008-2009 was a perfect example of what happens when models, in this case, a risk exposure model, fail to effectively reflect what they are supposed to be measuring.
The chance that media reports will have a negative impact on a company’s operations is referred to as headline risk.
As news continues to circulate at a continual pace, no organization is immune to the prospect of generating headlines.
For example, a single piece of bad news about a specific company or an entire sector, or both may cause a market reaction against that company or industry.
In the case of more widespread bad news, such as the euro-zone debt crisis in 2010 and 2011, the entire country, not just the stock market, would suffer, and this will have a tangible influence on the global economy.
Uncertainty in the relationship between government and industry is known as legislative risk.
Investors’ positions in a firm or industry could be harmed by government policies. Risks include antitrust suits, new laws or standards, complex taxes, and so on.
In theory, the state protects the public from corporate interests. When a business threatens the public and cannot regulate itself, the state steps in.
In reality, the state over-legislates. Legislation elevates the public’s impression of the government while also highlighting individual congressional representatives’ contributions. These enormous incentives create far more legislative risk than is required.
Inflationary Risk and Interest Rate Risk:
These two threats can coexist. This context alludes to the problems rising interest rates make for companies seeking credit.
Their costs are growing due to rising interest rates, making it harder for them to stay in business. If rates rise to battle inflation, which is normal, then a company’s borrowing expenses rise as the value of its dollars decreases.
While corporations can afford higher costs, consumers feel the effects of inflation. Increasing interest rates and inflation combined with a poor market can lead to a sluggish economy and stagflation.
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How to buy tesla stocks in Canada? (What to consider before buying Tesla stock).
Buying Tesla shares at such a high price can be risky depending on your investing risk tolerance.
Investors with a higher risk tolerance may want to buy the stock and hold it for several years, expecting volatility.
Others seeking diversification may choose to minimize their Tesla holdings.
Your faith in the company’s current and future success will drive your investment decision. When determining where to invest, consider both qualitative and quantitative factors.
Consider Tesla’s overall sales, management, risk, and the competition before investing. Tesla may be a good investment if you trust Elon Musk’s vision for the company’s future.
Where Can you Buy Tesla Stock in Canada?
To buy Tesla Stock in Canada, you can get one through the following
1. Through a Robo-advisor:
As an additional option, investors can work with a Robo-advisor, who will make decisions about where to invest and how to allocate the investor’s assets depending on a variety of characteristics, such as the investor’s self-identified risk tolerance, financial objectives, and time horizon.
Purchases can be made through the following channels:
- Nest Wealth
2. Through a Financial Advisor:
If you prefer, you can have your Tesla stock trade executed through a financial advisor, who will charge you a flat fee per transaction or a tiny percentage of the portfolio value that the advisor holds on your behalf.
A financial advisor can evaluate the risks involved, as well as the investor’s risk tolerance and investment objectives, and then develop and implement an investment strategy on the investor’s behalf, according to their recommendations and needs.
Due to the fact that Tesla is a single stock, such an option may be considered a luxury for investors looking to trade on the stock.
The Financial Consumer Agency of Canada can assist you in locating intelligent investors in the country.
3. Through an Online Stockbroker:
Purchasing Tesla stock through an online discount broker is the most convenient and cost-effective means of investing in the company.
In the comfort of your own home and in the shortest amount of time, if you have social security or social insurance number, a home address, and the address of your job, you can open a bank account.
This alternative involves little to no initial expenditure, and if you are strapped for cash, it will be extremely beneficial for you to research it.
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How to buy tesla stock in Canada (Conclusion):
Tesla is a publicly-traded company, meaning anyone can buy stock. An investor who buys Tesla stock gains shareholder rights but must open a brokerage account to trade.
Investing money is a significant step, and whether or not you will get a return on your investment is uncertain. Tesla’s recent success has energized the stock market.
To establish sustainable energy ecosystems, the firm introduced various amazing energy solutions investing in these platforms is risky. A financial advisory team can assist you to decide what to invest in and where.
Do not hesitate to share.