It’s never a dull moment when you keep a tab on Tesla or its CEO Elon Musk. Tesla is one of the few companies that are disrupting the industry on a monumental scale.
And those who own stocks of Tesla have seen enormous returns. Recent reports show that the electric automobile maker has seen revenues go up as much as 80% year on year.
Driving a Tesla car on Indian roads may be a far cry, but buying Tesla shares in India is not only possible but also a smart investment in 2022. Here’s how.
A refresher on Tesla
Founded by Elon Reeves Musk in 2003, Tesla Inc’s (TSLA) market cap is reported at $839.35 billion as of July 25th 2022. When the world’s biggest rental car company Hertz placed its biggest ever order to Tesla in October 2021, the latter’s stock rallied 12.7%. This surge left Tesla’s (TSLA) stock price at a record-high close of $1,024.86.
Anyone with decent enough interest in the current news has heard about Tesla (TSLA). As the largest electric vehicle manufacturer in the world, the company designs, develops, manufactures, and sells fully electric vehicles (EVs) apart from generating energy and manufacturing energy storage systems.
The reason why Tesla Inc is believed to be the next generation of manufacturers is because it is also the world’s first vertically integrated company in the sustainable energy sector. That means the company sources and produces end-to-end clean energy products.
So far, Tesla has rolled out three fully EVs: Model S sedan, Model X- sport utility vehicle (SUV), and Model 3 sedan. What’s interesting is this – way before any of these models were ever launched in the market, Tesla Motors had managed to woo investors and churn out profits from pre-orders – a feat that’s rare for any company back in the 2000s.
Musk remains its largest shareholder and investor since 2004, when he joined as chairman of the board. The company began delivering Model S in 2012 and Model X in 2015.
Some of its important acquisitions are –
- Tesla acquired SolarCity – the largest installer of rooftop solar systems in the US – for $2.6 billion in stock in 2016
- Acquired DeepScale – a computer vision startup that specializes in producing driverless vehicles – in 2019
- Acquired Hibar Systems – a Canadian engineering company that specializes in battery manufacturing equipment in 2018
- Acquired Maxwell Technologie0073 in 2019
Why should you invest in Tesla (TSLA) from India?
- EVs are the future
Most developing countries around the world are currently building infrastructure to normalize electric vehicles. EVs are the future, and this market is poised to grow in the next few decades.
Data suggests the global electric vehicles market, which is presently worth over $300 billion, is estimated to reach a valuation of around $1.31 trillion by 2028, demonstrating a compound annual growth rate of about 22.6%.
Price of Tesla stock on 25/7/2022. Source: Google Finance
The better news is that the Asia Pacific happens to be the highest revenue contributor to this market, which positions the Indian market on a growth trajectory for EVs. Tesla’s (TSLA) stock is considered a lucrative investment because of its market share.
According to Statista, Tesla (TSLA) leads the market share in the global plug-in electric vehicle market in the first half of 2021 with 14.55%.
- Sustainable energy is poised to grow
Tesla Motors is now Tesla Inc which also comprises its sustainable energy products and commitment. The sustainable energy sector is yet another industry that’s considered both futuristic and investment-worthy.
With the increasing demand for electricity, sustainable options such as renewable energy may accelerate from 2021 onwards. The global renewable energy market recorded revenues of $692.8bn in 2020, with a CAGR of 8.9% between 2016 and 2020.
Tesla, as a company, has always invested and put its stakes in futuristic technologies. Through its various acquisitions (such as SolarCity), it becomes clear that its stock value will further soar.
- Dependable track record
Tesla (TSLA) possesses the most bizarre market trends when it comes to both rolling out its EV products or acquiring the right startup at the right time. The company had won the faith of investors purely based on concepts and projections years before launching any of its products.
Investors have continually put faith in Tesla’s vision in both the EV as well as the energy markets – the two technologies that are being looked up to as the next generation of industries.
It successfully rode the chip shortage issues by rewriting its software, showing it is agile and resilient to challenges. Tesla could also enter into Lithium refining to end the choke point in the sector.
It has also targeted to sell 20 million EVs every year by 2030, a task that will significantly propel the stock prices if accomplished.
How to buy Tesla share in India?
Well, owning a Tesla car in India is not possible currently. However, you can buy Tesla (TSLA) shares in India as you can buy Reliance or Tata shares. Here’s how to buy Tesla shares in India.
Direct investment in EV stocks:
When investing directly, you can buy stocks of the automobile manufacturer. With Stockal, you may quickly and simply invest directly in the stocks of electric vehicle manufacturers. Also, you can buy a fraction of a whole share. With Stockal, fractional investing is possible for as low as $1. Here’s what you need to do.
- Formulate your risk appetite:
Before making any investments in any financial product or industry, it is important to gauge your risk appetite. The higher the returns, the riskier the investment.
- Select an investment medium :
Since India now permits investments in US stocks, there are various mediums for investments. Stockal is one such medium that makes investments in the US easy. Compliant and quick.
- Decide the quantum according to risk appetite and investment goals:
After selecting the medium and gauging your risk appetite, it is important to understand your budgetary constraints. Stockal lets you invest in shares fractionally so you may necessarily not have to shell out a huge amount to invest in a particular US stock.
- Place the order:
After deciding on all of the above, make sure you complete your documentation and compliance, then simply, with a click of a button, place the order.
Stacks are pre-assembled collections of stocks and exchange-traded funds that you can buy with a single click. They are created by hedge funds, experienced wealth management businesses, global asset management corporations, and portfolio managers.
Various pre-assembled portfolios made up of these instruments are typically centred on a certain topic or notion, such as capital goods, ESG, internet technologies, healthcare, and electric cars, among others.
One such successful strategy that enables you to keep your money in the right investments and increase your wealth is Stockal’s Stacks. You may invest in stacks with Stockal that focus on investment in US EV stocks.
An investor might not be able to purchase numerous stocks. Along with the approach, it necessitates a high level of expertise and comprehension of the EV market and its participants.
This is where ETFs can help. It contains a basket of securities that track a particular index. Investing in EV equities may also be done through sector-tracking ETFs.
Any investor may diversify their portfolio, particularly in US markets, by investing in mutual funds that include US firms. Mutual funds help reduce the risk of a whole equity portfolio by providing diversity and amplifying the exposure of domestic equities to international economies.
A word of caution
In early 2021, Tesla (TSLA) stock hit a 52-week high of $900. However, it has only yielded nominal returns on a year-to-date basis. This may be a classic case of euphoria in the stock market, where everyone may be flocking to buy a Tesla share.
We can help
How can you know if a share is in a euphoric state? How to ensure the right time to put in your money in shares such as Tesla? At Stockal, we put you at ease and take away your worries by keeping you informed and updated with timely advice. To learn more, visit Stockal’s website here.
Disclaimer- *Information provided herein should not be construed nor treated as legal, tax, investment, financial, or other advice and Stockal expressly disclaim any liability on such averment. The trademarks, images and logos used herein are purely for information purposes only