Following such astronomical gains, a bumpy ride is likely. Cumulative Growth of a $10,000 Investment in Stock Advisor, Tesla Stock: Buy, Sell, or Hold at $850? As such, the amount of dollars index funds spend buying Telsa shares will … I believe that with Tesla stock, anything can happen, but as it stands it seems likely to keep on growing. “‘Buy Tesla stock’ is now the #1 autocomplete suggestion for the Google query “should I…,’” Datatrek co-founder Nicholas Colas wrote in a note Wednesday. Shares of Tesla (NASDAQ:TSLA) have surged since S&P Global announced last month that it would include shares of the electric-car maker in its closely watched S&P 500 index. Should I buy Tesla, Inc. (TSLA)? Sure, the stock was getting expensive, but the company was executing at an accelerated pace, cash flow was improving, and the future looked bright, I argued. For many companies, 2020 has been a somber year. How to Buy Tesla (TSLA) Stock. The rapidly growing valuation of the company might be considered as a risk factor, but the investors who took a risk back then are actually enjoying immense profits now. Stock Advisor launched in February of 2002. All of this to say, my recent opinion on Tesla shares stands, despite a 20% uptick in the stock price in 2021. Of course, the market has already recognized Tesla's extraordinary momentum, driving up the stock price. But is that still the case? More recently, however, I've shifted my tone to one that is more cautious, urging investors to hold onto some shares but to also consider taking some profits in the case that the company does better than expected. Still, investors may want to look for a better entry price to leave some room for error when it comes to rosy projections for the automaker. The buy point ranges up to 489.30, after which it’s considered extended. Cumulative Growth of a $10,000 Investment in Stock Advisor, Should You Buy Tesla Stock Right Now? He is smart and doesn't want the headaches of making cars. As a shareholder of Tesla only since 2H2018, I wanted to share my thoughts on whether to buy, sell, or keep holding Tesla stock. Tesla Stock Pros: Demand Is Rising. Tesla's () stock price surged an astounding 743% in 2020, a growth rate that would have put many dot-com stocks to shame during the tech bubble in the late 1990s. Follow him on Twitter to get links to his articles, quotes from books he reads, and a look at the sources that inspire him. Should You Buy Tesla (TSLA) Stock? Why Tesla’s new strategy means smaller profit margins and more competition. Here’s The Only Safe Way To Buy Tesla Stock Going long TSLA stock and short Nikola mitigates risk. (Hint — nowhere near where it’s trading now.) Yet trailing-12-month free cash flow comes in at just $1.8 billion. Whether you should buy Tesla now or later depends in part on how much money you have to invest and how your broker will allow you to invest. See Tesla real time stock price, historical quotes and price charts. Daniel Sparks is a senior technology specialist at The Motley Fool. Tesla trades on the Nasdaq exchange with the ticker symbol TSLA. @themotleyfool #stocks $TSLA, Elon Musk's SpaceX Now Taking Pre-Orders for Starlink Satellite Internet Service, Elon Musk Talks Cybertruck, Solar Roof, and Tesla Semi, Report: Chinese Electric-Vehicle Maker Byton Seeks to Go Public Via SPAC, Tesla Gets a Warning in China as it Loads Up on Bitcoin, Copyright, Trademark and Patent Information. Market data powered by FactSet and Web Financial Group. Given the company's aggressive buildout of new factories and production lines throughout 2020, it wouldn't be surprising to see 2021 vehicle deliveries increase 50% or more over 2020 levels. With the recent gains, Tesla is approaching to new all-time highs again, that are now just 5.35% above the current price; The stock is configuring an uptrend pattern since August 2019, when it bottomed at $42.20. Tesla stock brief. Since there's no guarantee Tesla will be able to roll out updates to make its vehicles fully autonomous, investors should be cautious about buying shares at this valuation. Not so for Tesla. Retail investors have flocked to Tesla. He has previously served in the U.S. Army on active duty and holds an MBA from Colorado State University. Quite the opposite, actually. Follow him on Twitter to get links to his articles, quotes from books he reads, and a look at the sources that inspire him. 2 Reasons Why Tesla Is a Risky Buy Right Now Investors should not risk their hard-earned cash on Tesla stock. Tesla stock just moved 0.26% to close at $852.23 on the stock market on Friday. He has previously served in the U.S. Army on active duty and holds an MBA from Colorado State University. January 7 in General. The share price has risen meteorically and is at a record-high in 2H2020. Tesla trades at about 29 times its trailing-12-month sales and 18 times analysts' average forecast for 2021 sales. Tesla’s split exchanged one old share of the company for five new shares each worth 1/5th of the original’s value. Going forward, Tesla will need to demonstrate near-flawless execution on its expansion plans in order for the stock to continue rising. Even on a price-to-sales basis, the stock looks expensive. Shares of the growth stock are up nearly 800% over the past 12 months and 600% year to date. Even when excluding sales of regulatory credits, third-quarter free cash flow was about $1 billion. While my last look at the growth stock was less than a month ago, shares are already up more than 20% since then. Should You Buy Tesla Stock or Not There is no doubt in the fact that Tesla stock is greatly attracting a plethora of investors. Should I Buy TSLA stock at $815? Tesla stock's wild run this year has attracted the attention of many new investors. Over the long haul, Tesla believes its vehicles will be able to drive themselves. Buy Tesla stock (TSLA). You need to believe in the electric vehicle story as well as Elon Musk before buying TSLA stock. Use the Zacks Rank and Style Scores to find out is TSLA is right for your portfolio. This uptrend marked a 1,919.50% gain Or has the stock's recent gain made shares overvalued? Traders are expecting huge volume on … In the third quarter of 2020 alone, Tesla generated $1.4 billion of free cash flow. Tesla currently has a market capitalization of more than $800 billion. Maxxer. Returns as of 02/11/2021. In order not to miss out on potential large future gains, I would buy some Tesla stock now, but only with funds that I can afford to lose. Tesla stock's wild run this year has attracted the attention of many new investors. Tesla is, of course, a little bit different. Further, vehicle deliveries in the second half of the year were up 53% year over year. Daniel Sparks is a senior technology specialist at The Motley Fool. When Tesla TSLA joins the S&P 500 next month, it will be the biggest debut ever in the world’s most important stock index. Market data powered by FactSet and Web Financial Group. The electric-car maker is now one of the most valuable companies in the world. This is where the major concern for investors comes in. Of course, it's always possible that Tesla will deliver on its autonomous driving aspirations, building one of the world's most valuable software businesses while it's at it. This production capacity expansion, of course, will support growing Model 3 sales and expanded production of Tesla's new Model Y, which was introduced to Tesla's vehicle lineup earlier this year. To watch this newest video, click here or click the image below. However, Tesla stock is for believers. There is no doubt that Tesla will plough ahead with its innovative attitude as it continues to produce top-quality cars. Considering all of the above, rather than buying Tesla shares directly, I think I’d prefer to own the Scottish Mortgage Investment Trust (LSE: SMT). In the past, this has been a bullish sign. Shares of the growth stock are up nearly 800% over the past 12 months and 600% year to date. @themotleyfool #stocks $TSLA, Elon Musk's SpaceX Now Taking Pre-Orders for Starlink Satellite Internet Service, Elon Musk Talks Cybertruck, Solar Roof, and Tesla Semi, Report: Chinese Electric-Vehicle Maker Byton Seeks to Go Public Via SPAC, Tesla Gets a Warning in China as it Loads Up on Bitcoin, Copyright, Trademark and Patent Information. Equally exciting is Tesla's potential in 2021. Stay up to date with Tesla stock news. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. During the first quarter of 2020, Tesla launched its Model Y SUV about six months ahead of management's initial timeline. Returns as of 02/11/2021. Tesla has certainly been giving shareholders good reasons to hold onto the stock. Third-quarter free cash flow, for instance, was $1.4 billion. Tesla's stock broke records this week and is up around 82% since the beginning of the year, but investors should be cautious about putting too many eggs in one basket. Investors seem to be betting that this enhanced appreciation for Tesla stock among funds will drive the price higher. In addition, Tesla has drastically expanded its production capacity recently. And more recently, Tesla has been reporting sharp growth in vehicle deliveries and significant cash flow improvement. “This Stock Could Be Like Buying Amazon in 1997” If the automaker can pull this off, Tesla could undoubtedly charge extremely high prices for the software. I bought Tesla stock in 2H2018 after I met Elon Musk at a wedding. For investors with a high-risk tolerance and who are willing to hold onto shares for five to ten years or more, I'd give shares a hold rating. In short, Tesla shares could prove to be rewarding even from these levels -- although the execution and continued market-share gains required from Tesla are … But the automaker bounced back quickly, posting 44% year-over-year growth in vehicle deliveries in Q3. The Tesla stock holds buy signals from both short and long-term moving averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. Based on Tuesday’s closing prices, Tesla stock has fallen by more than 33% from the 52-week highs that it hit earlier this year. Therefore, if you are asking, “Should I buy Tesla stock?” still, the answer is probably yes. For a while, my take on Tesla stock was to hold, despite its soaring valuation. Tesla stock split 5 for 1 on recently. Investing is his primary passion. Throughout the year, Tesla rapidly expanded production and made progress on the construction of new factories. Indeed, Tesla has already been rapidly increasing the prices of its "Full Self-Driving" software package, which lets customers access enhanced driver-assist features and prepay for a potential launch of fully autonomous driving capabilities. Tesla factory. Tesla Stock: Buy, Sell, or Hold at $850? Given Tesla's $550 billion market capitalization today, the market-cap-weighted index will need to make a major purchase of the company's shares. With so much excitement on the Street for the electric-car maker, is it time to buy Tesla stock? But here's the issue. Most important of all, find out what your target buy price should be if you do want to speculate on Tesla stock. Up more than 20% this year and about 800% over the past twelve months, should investors take their profits? The option currently costs $10,000, up from $5,000 as recently as May of last year. For investors who do decide to hold onto some Tesla stock, expect lots of volatility. One of the biggest reasons traders have been wary to invest in Tesla stock was the firm’s inability to turn a profit … however, the tide appears to be shifting. After all, Tesla's recent execution essentially exceeded most investors' expectations in 2020. Who's to say the company won't do the same thing in 2021? Selling shares of a business doing this well could be a mistake. While this is great for shareholders, it creates an ever-evolving dilemma: Are shares worth their swelling price tag? ... its probably a good long term investment. If Tesla’s stock price is lower than you might remember, that’s because the EV giant declared and completed a 5-for-1 stock split at the end of August 2020. Although the stock … A stock is considered to be extended when its 5% above the proper entry point. Stock Advisor launched in February of 2002. The company's annualized global production capacity has expanded from 440,000 units about a year ago to 840,000 units at the end of Q3 2020. Tesla stock is currently extended from its buy zone after breaking out of a cup with a handle with a buy point of 466. Invest in Tesla stock and others with any dollar amount. In addition, investors could consider trimming their position in Tesla, particularly if it has become outsized in relation to other portfolio holdings. In addition, there needs to be a tipping point in which electric vehicle sales start rivaling gas car sales. But it will likely require execution in speculative areas like self-driving technology and the company's nascent energy-storage business. In addition to continuing to grow vehicle sales rapidly, Tesla will have to build out its nascent battery storage and solar business while also making significant progress in software. Here are my latest thoughts on this Wall Street darling. You don’t have to buy a lot of Tesla stock. Tesla stock. This strong quarterly performance put trailing-12-month deliveries up 24%. It will become one of the largest companies in the S&P 500. Buying the stock at this valuation, however, may be too risky. Tesla (NASDAQ:TSLA) shares seem to be hitting new highs on a weekly basis over the past year. Of course, there's still potential for Tesla to live up to this valuation. Should bulls buy Tesla stock? By Wayne Duggan , InvestorPlace Contributor Aug 14, 2020, 3:08 pm EST August 14, 2020 If you’re wary, you can just buy 1 share. No matter how exciting Tesla's business is, valuation matters -- and the electric-car maker's valuation is simply difficult to justify. Investing is his primary passion. The company plans to fine-tune its software and beam over-the-air updates to its vehicles, enabling self-driving features. Sure, deliveries fell 5% year over year in Q2 when the electric-car maker's factory in California was shut down for about half the quarter due to pandemic-related government restrictions. So, yes, this is a good investment. In addition, many funds that mimic the S&P 500 will likely similarly purchase shares. After the company's first full year of profitability, is the stock a buy? The run-up has made Tesla's market value greater than the next five largest automakers combined. The company's most notable recent achievement is swinging from negative cash flow in the first half of 2019 to significant positive cash flow recently. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Image source: The Motley Fool. tesla is not a car company and don't want to be Elon Musk has tried to sell the car division and would again in a heartbeat for the right money.