Should I Invest in Tesla Shares?

Roberto Rivero

Electric Vehicle (EV) ownership is on the rise and, due to the need to reduce our emissions, it is probably a fairly safe assumption that demand for EVs will continue to rise in the future. Although competition has increased significantly in the EV sector, there is still one undisputed king: Tesla.

In the last few years, investors have swarmed to buy Tesla shares, turning it into the most valuable car manufacturer in the world. But is it too late to invest in Tesla? In this article, we will look at the question, ‘should I invest in Tesla?’, look at the evolution of Tesla’s share price, demonstrate how to buy Tesla shares and much more!

Tesla Inc. - A Brief History

In less than twenty years, Tesla has gone from being founded to becoming the largest car manufacturer in the world by market capitalisation.

How did it get there? Before we look at investing in Tesla and how to buy Tesla shares, let’s take a quick look at some of the highlights of Tesla’s short, and incredibly successful, history.

  • 2003: Tesla founded by Mark Tarpening and Martin Eberhard
  • 2004: Elon Musk contributes $6.5 million out of a total of $7.5 million to Tesla’s series A funding and subsequently joins the company as chairman of the board of directors.
  • 2008: Tesla begins deliveries of its first car, the Roadster, delivering 147 vehicles by the end of the year. Musk becomes CEO.
  • 2010: Tesla launches an Initial Public Offering (IPO) on the NASDAQ, issuing 13.3 million shares at a price of $17 per share
  • 2012: Tesla launches its second car, the Model S luxury sedan
  • 2020: In December, following four consecutive profitable quarters, Tesla is included in the S&P 500 for the first time
  • 2022: Tesla delivers record 1.31 million vehicles

Tesla Annual Report

The year 2020 marked the first year which Tesla recorded a full-year profit and, since then, the EV manufacturer has performed strongly.

It is important to remember that, if you buy Tesla shares, you are buying a portion of the company. Consequently, the success of your investment is dependent on the future success of Tesla. Therefore, before you invest in Tesla, you should be sure to familiarise yourself with their recent financial performance.

In the table below, we have summarised a few of the key figures from Tesla’s annual results.

Tesla Annual Results 2022
  2022 2021 % Change YoY
Total Revenue $81,462 million $53,823 million 51%
Total Gross Profit $20,853 million $13,606 million 53%
Earnings per Share (EPS) $4.07 $2.26 80%
Vehicle Deliveries 1,313,851 936,222 40%

Source: Tesla – Q4 and Full-Year 2022 Update

When considering whether or not to buy Tesla shares, one of the important metrics to consider is vehicle deliveries, which measures the amount of vehicles sold and delivered to customers over the time period.

A number of new factories have allowed Tesla to really ramp up production in recent years, with vehicle deliveries increasing 435% in the five years between 2018 and 2022.

Tesla Share Price Analysis

Since Tesla went public in 2010, its performance on the stock market has been nothing short of remarkable. Before we address the question of ‘should I invest in Tesla?’ – let’s take a look at the evolution of the Tesla share price in recent years.

Depicted: Admirals MetaTrader 5 - Tesla Weekly Chart. Date Range: 30 October 2016 - 24 May 2023. Date Captured: 24 May 2023. Past performance is not a reliable indicator of future results.

It’s hard to tell from the chart above, but from the start of 2017 to the end of 2019, Tesla shares gained an impressive 96%; however, it was 2020 when Tesla stock exploded.

A setback caused by the outbreak of Covid-19 at the beginning of the year was quickly overcome and Tesla shares closed the year with a gain of more than 740%. Along the way, Tesla dethroned Toyota as the most valuable car company in the world, gained admission into the S&P 500 and recorded its first profitable year!

The year 2021 saw Tesla stock growth slow as pandemic-era supply chain disruptions wrought havoc around the globe. However, despite the “slow down”, Tesla shares closed the year with a gain of 50% and a market capitalisation of more than $1 trillion, putting the EV manufacturer in a very exclusive and select group of companies which have achieved this impressive benchmark.

How much would you have if you invested in Tesla IPO?
A $1,000 investment in Tesla stock at the IPO price of $17 per share would have bought you 58 shares which, accounting for the Tesla stock split in 2020, would have been worth more than $107,000 by the end of 2022!

The year 2022 was less kind to Tesla shares, with share price plummeting 65%. This was largely due to the general stock market malaise caused by high inflation, rising interest rates and general economic uncertainty.

However, it was also in part a consequence of CEO Elon Musk’s acquisition of Twitter, of which he subsequently also became CEO. With Musk’s plate already fairly full before the acquisition, many believed the Tesla CEO may have spread himself too thin, which spooked some investors. Nevertheless, Musk has since announced the appointment of a new Twitter CEO to relieve him of his duties.

But is this latest downturn in Tesla share price a momentary blip on the way to further runaway success? Could now be an opportunity to buy Tesla shares? Or is it too late to invest in Tesla?

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With a Trade.MT5 account from Admirals, you can trade Contracts For Difference (CFDs) on Tesla stock and over 3,300 other shares around the world! CFDs allow traders to attempt to profit from both rising and falling prices by going long and short. Furthermore, CFDs also benefit from the use of leverage! Click the banner below to open an account today:

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Should I Invest in Tesla Stock?

We have seen that Tesla shares have been very successful over the past five years. But history is history, what about the future?

As we said at the beginning of the article, demand for electric vehicles is rising. According to the International Energy Agency (IEA), electric cars made up 14% of the overall car market, up from 4% in 2020.

With many countries around the world planning to ban the sale of petrol powered vehicles in the future, this percentage is likely to increase over the coming years, as EVs become the future of the car industry.

Tesla saw this future earlier than most and wasted no time in positioning itself to take full advantage of this growing market. Although there are many new competitors entering the industry, Tesla has cemented its position as a market leader. Furthermore, whilst many EV producers struggle to deliver a significant number of vehicles, Tesla continues ramping up production and turning a sizeable profit whilst doing it.

However, if you are reading this and considering investing in Tesla shares, it is important to bear in mind that a lot of this information and potential success will already be accounted for in the current Tesla share price. The stock market clearly expects Tesla’s success to continue, which is why the company is valued so highly.

Nevertheless, as mentioned earlier, Tesla’s share price fell a lot last year. This fall in share price could represent an interesting buying opportunity for Tesla stock for those who feel confident about the company’s future success.

But the question ‘should I invest in Tesla stock?’ is really one you need to answer yourself. Investing in Tesla should be a decision you arrive at from your own research. For those who are considering buying Tesla shares, as with any other investment at the moment, you should be prepared for short-term volatility as the stock markets continue to react to economic uncertainty.

How to Buy Tesla Shares

With an Invest.MT5 account from Admirals, you can invest in Tesla shares and more than 4,300 other listed companies from around the world! In order to find out how to buy Tesla shares, read the following steps:

  • Open an Invest.MT5 account and log in to the Dashboard
  • Next to your account details, click ‘Invest’ to open the MetaTrader Web Terminal
  • Search for the Tesla stock symbol and open the price chart
  • Click 'Create New Order' at the bottom of the screen, enter the number of Tesla shares you wish to purchase and click ‘Buy’ to send your order to the market!
Depicted: Admirals MetaTrader WebTrader - Tesla. Date Captured: 17 August 2023. Past performance is not a reliable indicator of future results.

Invest in Tesla with Admirals

With an investing account from Admirals, you can buy shares in Tesla and over 4,500 other listed companies from around the world. Click the banner below to register for your account today:

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Investing in Tesla FAQ

How Do I Buy Tesla Shares in UK?

In order to buy Tesla shares in the UK, you will need to register with a broker which provides access to the US stock markets. At Admirals, UK customers can invest in Tesla shares and more than 3,300 other public companies listed on US stock exchanges.

When Will Tesla Stock Split?

Tesla stock has split twice in the company’s history, at the time of writing, no plans have been made for a third stock split. The most recent Tesla stock split was a 3 for 1 split on 25 August 2022.

How Many Shares Does Tesla Have?

As of 17 April 2023, Tesla has 3,169,504,301 shares of common stock outstanding.

How Many Shares Does Elon Musk Own in Tesla?

As of the 10 March 2023, Elon Musk reportedly owns 411,051,576 shares of Tesla common stock.


The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following:

  • This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
  • Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
  • With view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for prevention and management of conflicts of interest.
  • The Analysis is prepared by an independent analyst Roberto Rivero, Freelance Contributor (hereinafter "Author") based on personal estimations.
  • Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.
  • Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
  • Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.
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