Investing in US stocks has become a popular trend amongst investors in recent times and Tesla has become the favorite stock among millennials.
The company has not only emerged as a top player in the US automotive sector but its stock has seen exponential growth giving around 1500% return to investors in the last 5 years.
Let’s discuss how to invest in Tesla from India in a step-by-step manner.
How to Invest in Tesla from India
Step 1 – Open a US Trading Account
The first step is to open a trading account with any platform like INDmoney. You can do this by visiting their website and filling out the online registration form.
You will need to provide your personal details and upload your KYC documents such as a Pan card, and aadhar card. You can move to the second step if you already have an account.
Step 2 – Log in to US Trading Account
Once your account is opened, you can log in to your account with the user credentials provided by the broker.
Step 3 – Add Funds to Your Account
Investing in US stocks from India requires an additional step of adding funds from the bank’s net banking portal to your US trading account.
You can get US bank account details where you have to transfer funds from your broker’s portal or within the app. Taking the example of the HDFC bank account below to help you understand the process –
- Log in to your HDFC bank’s net banking portal
- Go to the Funds Transfer section
- Click on ‘Remit Now’ and then click on “Add as Beneficiary”
- Fill in US bank account details provided by your broker for US stock investment
- Once the US bank is added as a beneficiary, now transfer the required funds to that Beneficiary under the “Remit Now” option.
Step 4 – Search for Tesla
You can search for the stock by typing “Tesla” in the search bar and clicking on the stock symbol.
You can also find the Tesla stock under the “US Stocks” section.
Step 5 – Place an Order
Once you find the Tesla stock, you can place an order by clicking on the “Buy” option. You can choose the number of shares you want to purchase or you can add the amount that you want to invest in Tesla stock.
Confirm your order by clicking on the “Confirm” button. Once your order is executed, your shares will be added to your portfolio.
Why Tesla is Investor’s Favourite Stock?
Here are some reasons why Tesla is a popular stock amongst investors:
- Innovative Technology: Tesla is known for its innovative technology in the automotive and renewable energy sectors. The company has developed electric cars that are sustainable and environmentally friendly and successfully attracted investors who believe in the future of renewable energy.
- Charismatic CEO: Elon Musk, the CEO of Tesla, is known for his charismatic personality and innovative ideas. His leadership has led Tesla to success and has created strong brand equity for the company.
- Exponential Growth: Tesla has seen exponential growth in the last few years. The company’s revenue has grown from $7 billion in 2016 to $31.5 billion in 2020. This growth has been due to the increasing demand for electric cars and the company’s expansion into new markets.
Historical Performance of Tesla Stock
Tesla stock has given a significant return of 280% in the past 3 years and 1,468% in the last 5 years.
However, Tesla stock tanked 69.2% in the year 2022 giving long-term investors an opportunity to invest in the EV stock.
Tesla Stock’s Fundamental Details
Let’s discuss other important fundamental factors of Tesla
The Price/Sales ratio, which is a measure of how much investors are willing to pay for each dollar of a company’s sales, has also decreased by 70%. Tesla’s revenue has increased by 500% in the past 5 years, compared to Apple’s 59% increase. You can also read our article on buying Apple shares from India in detail.
Tesla’s P/E ratio, which measures the price of the stock compared to the company’s earnings, has typically been high, but it has now dropped to a more reasonable level of 35x.
Lastly, Tesla has more cash than debt. Its Net Debt position shows that it has an $18 billion cash balance, which is much higher than its debt balance.
Revenue Generation of Tesla
Last year, Tesla made $78 billion in sales from its car business, which is 33% more than the 2021 year. In the last quarter of 2022, $467 million came from regulatory credits, which is almost half more than the previous year in the same period.
However, Tesla’s gross profit margin from its car business was 25.9% in December 2022, which is the lowest it has been in the past five quarters.
The operating cash flow of the company was $3.28 billion, which is 29% less than what it was the previous year, and 36% less than what it was in the previous quarter.
We have also written a detailed article on how to buy Hyundai stock in India if you are interested in other automobile stock in the US.
Investing in Tesla from India is as easier as investing in the Indian share market. However, you should do proper research and analysis to make informed investment decisions and potentially earn significant returns on your investment.
The minimum amount needed to invest in Tesla is Rs. 100. Which means you will buy fractional shares of the stock.
In addition to 5paisa, there are several other online trading platforms like Zerodha, Upstox, and Groww that allow investors to invest in Tesla from India.
Investing in Tesla comes with the inherent risks associated with investing in the stock market, including the possibility of losing money.
Additionally, Tesla’s stock price is known for its volatility, which means that there may be sudden and sharp fluctuations in the stock price.
Tesla is a favorite amongst investors because of its innovative technology, charismatic CEO, and exponential growth in recent years.
Additionally, Tesla is seen as a company that is leading the charge towards a more sustainable future, which makes it an attractive option for investors who want to support environmentally responsible companies.
Yes, some mutual funds in India may have Tesla stock as part of their portfolio. However, it is important to research the specific mutual fund and its holdings before investing to ensure that Tesla is part of the fund’s portfolio.
You can follow several financial news websites and apps that provide real-time updates on Tesla’s performance and news, including Bloomberg, CNBC, and Yahoo Finance.