Differences between Investing vs Trading
Differences between Investing vs Trading
Based in Austin, Texas, Tesla was founded in 2003 and is a leading name in the electric vehicle industry. Their overall stated goal is to help people move to cleaner products such as electric vehicles and solar power. As well as battery-powered and plug-in cars, they also offer clean energy solutions such as solar panels and battery energy storage.
The company was founded by Martin Eberhard and Marc Tarpenning, but a year after founding it, they received a $6.5 million investment from Elon Musk. This made Musk the largest shareholder and also the chairman of Tesla.
Their first car to hit the market was the Tesla Roadster, which was brought out in 2009. Later models include the Tesla Model S and Model X. Their Model 3 vehicle was launched in 2017 and soon became the top-selling plug-in electric car, as well as being the first to sell a million units.
When it comes to electric vehicles, two of the most popular names on the market are Tesla and Nio. Both companies have their own unique take on what an electric vehicle should be, and both have their own loyal fan bases. Check out our FAQs below to see if Tesla is a good investment for you.
Despite not reporting an annual profit until 2020, Tesla was already regarded as one of the world’s most valuable companies and the most valuable car manufacturer before this. The growing demand for electric vehicles as a greener alternative to fossil fuels has led to surging sales across the planet, pushing the Tesla share price (listed as TSLA) up even as they failed to break into profit. As the leading clean-energy car manufacturer, their share price has benefitted massively from the focus on switching from fossil fuels.
Issues such as lawsuits and recalls due to product failures have produced some controversies that have, on occasion, adversely affected the Tesla share value. On the other hand, the likes of emerging legislation to help the environment and an increasing awareness around being kind to the planet have helped to keep Tesla in the news. The previous points continue to be key factors to be aware of, together with any new rivals in the sector.
Despite Tesla and Nio being the leading electric vehicle manufacturers in the world, Xpeng is now worth more than both combined. Xpeng's main selling point has been its low prices, which has allowed it to gain a significant market share in China.
As with any type of stock, the high cost of investing and the potential volatility are major factors to consider. In the case of TSLA stock, we also need to take into account the fact that they operate in a cutting-edge industry subject to changing conditions and breakthroughs. For some investors, this makes the idea of investing in an index fund that includes Tesla a better option.
Yet, some investors may be attracted by the increased volatility, in the hope that they can benefit from price rises. The company’s stated policy is to retain all profits for future growth, rather than paying dividends.
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* The spreads provided are a reflection of the time-weighted average. Though Skilling attempts to provide competitive spreads during all trading hours, clients should note that these may vary and are susceptible to underlying market conditions. The above is provided for indicative purposes only. Clients are advised to check important news announcements on our Economic Calendar, which may result in the widening of spreads, amongst other instances.
The above spreads are applicable under normal trading conditions. Skilling has the right to amend the above spreads according to market conditions as per the 'Terms and Conditions'.
Which are the competitors of Tesla shares?
Tesla's competitors in the electric vehicle space include Nio and Xpeng. Both companies are based in China and have been making inroads into the global electric vehicle market. Tesla remains the leader in this space, but Nio and Xpeng are quickly catching up.
Nio is a relative newcomer to the scene, having only been founded in 2014. However, the company has already made a name for itself with its cutting-edge electric vehicles. All of Nio's vehicles are designed to be ultra-efficient and luxurious, making them direct competitors to Tesla's offerings.
Xpeng is another Chinese company that is giving Tesla a run for its money. Xpeng was founded in 2014 Like Nio, Xpeng's vehicles are designed to be efficient and luxurious. However, Xpeng has also placed an emphasis on making its vehicles affordable, something that Tesla has yet to do.
Tesla is still the top dog in the electric vehicle space, but Nio and Xpeng are quickly becoming formidable competitors. It will be interesting to see how the competition between these three companies plays out in the coming years.
Who owns most Tesla shares?
According to public filings, the largest institutional shareholder of Tesla is Fidelity Investments, which owned approximately 5.8 million shares. Other major institutional shareholders include Vanguard Group (which owned approximately 4.4 million shares), BlackRock (3.7 million shares), and State Street Global Advisors (2.9 million shares).
In terms of individual shareholders, Tesla CEO Elon Musk is far and away the largest shareholder, with 33.8 million shares, or about 19% of the company. Other major individual shareholders include Larry Ellison (2.9 million shares), Ira Ehrenpreis (1.9 million shares), and Steve Jurvetson (1.7 million shares).
Do Tesla shares pay dividends?
No, Tesla shares do not pay dividends. Tesla's mission is to accelerate the world's transition to sustainable energy through the mass production of electric vehicles and renewable energy storage. reinvesting its profits back into the business in order to achieve this goal. Therefore, Tesla does not currently pay dividends to shareholders.
Why Trade [[data.name]]
Make the most of price fluctuations - no matter what direction the price swings and without capital restrictions that come with buying the underlying asset.