What is Tesla Inc.?
Tesla Inc. (TSLA), formerly Tesla Motors, was established on 1 July 2003 by Elon Reeve Musk, Martin Eberhard, Marc Tarpenning, Ian Wright and Jeffrey B. Straubel, with headquarters in Palo Alto, California. The company is involved in business activities such as design, development, production as well as the sale of electric vehicles, energy generation along with energy storage products. The company focuses on developing renewable energy components as well as better and faster electric vehicles which have an attractive design and have a positive impact on the overall company value. Also, Tesla has successfully developed a cutting-edge battery technology with high performance and higher endurance which have been upgraded continuously and installed in the multiple Tesla vehicles created during the last decade.
The company plans to make positive contributions toward sustainable energy. They created energy-related products like Powerwall, Powerpack and Solar Roof that help households and businesses to cope with different aspects related to renewable energy.
Tesla was quoted for the first time with an IPO on 29 June 2010 at the NASDAQ stock exchange. When Tesla went public, its market capitalisation was around $2 billion (£ 1.7 billion) while it reached an all-time high market capitalisation of approximately $160 billion (£135 billion) in February 2020.
Tesla stock price in the past
Tesla shares were priced at $17 (£14.4) for the IPO in 2010 and the company offered 13.3 million shares raising $226 (£192) million. However, the opening price on the IPO day was $19 (£16) and during the day the price went up to nearly $24 (£20). The highest point achieved by the shares happened in February 2020 when they were priced at $917 (£781) within the following month the price decreased down to approximately $360 (£306).
Tesla also records a positive movement in revenue and from reported revenue of approximately $116 million (£99 million) in 2010 it had a significant increase during the following years generating the highest revenue of $24 billion (£20 billion) for 2019.
How to invest in Tesla stock
So, how do you generate profit from changes in Tesla stock price?
The first and most obvious one to invest in Tesla stock is to buy shares directly from NASDAQ and own a portion of the company.
The second possibility for profit is if you decide to open positions with derivative instruments which are linked to Tesla shares. One such option is offered by Currency.com and comes in the form of tokenised assets.
Tokenised asset is a type of financial instrument with which traders make money from the price movement of certain security without holding it directly. The tokenised Tesla stock will replicate the price movement of the Tesla shares. The tokenised assets are enabled by the blockchain technology, which allows for an easier and more efficient way of storing and recording different types of data. By using the blockchain technology, Currency.com is capable of offering tokenised assets with faster, cheaper and safer transactions.
Currency.com offers the possibility for tokenised Tesla stock trading with fiat money as well as with crypto. Hence, traders owning cryptocurrencies, such as Bitcoin or Ethereum, are now able to buy tokenised assets directly from the Currency.com platform without going through the conversion process.
If the above benefit is not enough, then you can consider the fact that Currency.com gives leverage of up to 1:500 to its clients. The importance of the leverage is that you can make higher profits by opening larger positions with the same capital available. To better understand the margin trading, let's say that a trader has $800 (£681) of capital available for trading Tesla. Imagine that the price moves astonishingly 20 per cent (which is quite a substantial move) in your favour, you stand to make $160 (£136).
On the other hand, if you use the 5 per cent margin given by Currency.com to buy the tokenised security then you will open a position with a value of $16,000 (£13,633) using the same $800 capital. Consequently, a 1 per cent price movement could bring you the same profit of $160, and to be clear there are bigger chances that traders can enjoy 1 or few per cent changes in price, in the short run, than it is to experience a 20 per cent change as you can see from the price chart.
Tokenised assets work the same way as other assets. So, if you speculated that the price would increase, then you will take a long position with tokenised Tesla stock. Speculation about potential price decline will mean that you go short with tokenised shares.
Tokenised Tesla stock trading guide
There are also similarities in the trading activities between regular shares and tokenised Tesla stock. Before you start trading tokenised assets, you need to do the following steps:
- Step 1: Hit the sign-in button on Currency.com and register.
- Step 2: Allocate the desired amount of capital to your account, it's up to you to decide whether it will be crypto or fiat.
- Step 3: Determine the position size by taking into account the margin given by Currency.com.
- Step 4: Identify the expected price movement to define your trading position (long or short) with tokenised Tesla stock.
- Step 5: Currency.com matches the long orders from its clients with the sell orders and then hedges the unmatched orders through
- Capital.com, LMAX Digital or exchanges such as Binance, Bitstamp, Kraken, NASDAQ, NYSE and Gain Capital.
- Step 6: Close your positions when you find it suitable or you can also set a take profit order to ensure that you cash in on your positions. Afterwards, traders can withdraw their capital.
Why trade tokenised Tesla shares with Currency.com
Tesla stock trading at Currency.com tokenised assets exchange has a number of advantages. Tokenised assets are underpinned by robust and immutable blockchain technology. Opening a trade will give you a token that tracks and moves according to the underlying instrument's price.
- One-stop crypto trading platform
Trade tokenised Tesla shares with Bitcoin or Ethereum. Benefit from the stock's price movements without turning your crypto assets into fiat.
Trade tokenised TSLA stocks with a tight market spread, benefit from maker rebates and competitive taker fees.
Experienced traders can trade the world's top markets, like Tesla, with up to 1:500 leverage.
- Effective risk management
Manage your risks and secure your profits with stop loss and take profit orders. Save your assets with negative balance protection.
We have a scalable and low latency order management system, which can execute 50 million trades per second.
Currency.com operates under new Belarusian regulation with best-in-class AML and KYC laws. Regulatory details and fees are upfront.