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Headed up by controversial billionaire Elon Musk, Tesla (TSLA) is the world’s most highly valued car manufacturer and one of the more popular stocks on the US Nasdaq. In 2023, Tesla delivered 1.8 million EVs worldwide.
There has been considerable interest locally, too, in electric vehicles such as Tesla, albeit at a subdued pace. Sales of new electric cars in Australia tripled in the 12 months to January 2022—no doubt fuelled by high petrol costs—however, since then EV sales have come off slightly, with the Australian Automobile Association’s Electric Vehicle Index showing that battery electric vehicle sales declined by 25.10% (from 25,353 to 18,990) and market share fell from 8.10% to 6.57% from mid 2024 to September 2024. (Hybrid sales, meanwhile, rose by 3.33% from 46,727 to 48,282 over the same period).
According to data from the Federal Chamber of Automotive Industries (FCAI) and the Electric Vehicle Council, the Tesla Model Y is the best-selling EV in Australia, accounting for more than two in five EV sales. Tesla has dropped the price of the Model Y to better compete with Chinese rival, BYD, to $55,900 in Australia, while a Tesla Model 3, the second-most popular Tesla in the country, costs $65,000.
Tesla’s performance over time is the envy of many. However, the company is not immune to threats—notably stiff competition from Chinese rivals—nor to disruptions related to its controversial CEO. To wit: Musk spent much of the first month of 2023 embroiled in a court case surrounding two tweets in August in 2018, in which Musk boasted that he had financing lined up to take Tesla private. Stock was down at the time and Musk’s tweets—which, had they been accurate, would have spelt a $US72 billion buyout at $US420 per share—sent the share price soaring. Once it became clear the deal was nowhere to be seen, the rally reversed and stocks slumped, prompting shareholders to sue Musk for the tweets that provoked such volatility.
This year has been patchy for Tesla. At the end of the second quarter, Musk had said the company’s nearly 50% drop in profits “was temporary” and the result of competing with cheaper EVs from rival, BYD. “We don’t see this as a long-term issue,” Musk said in July, “but really fairly short term.” In October, the market responded poorly to the company’s much-hyped robotaxi, with Tesla shares dropping by just under 9% after the release. However, in its most recent earnings report in October (released before the US election), Tesla was able to fend off Chinese rivals to report $US25.18 billion in revenue—just short of Wall Street projections of $US25.43 billion.
The elevation of Musk into Trump’s inner circle has sent Tesla shares soaring by almost 15% in the wake of Trump’s re-election. As of November 19, 2024, Tesla was worth $1.1 trillion and $US338 per stock. Many analysts point out that Tesla will benefit from Trump’s plans for higher tariffs on imported EVs (especially Chinese rivals) and is unlikely to be negatively impacted by reduced subsidies for green vehicles as this would hit smaller companies the hardest.
“Tesla has the scale and scope that is unmatched,” said Wedbush analyst Dan Ives, in a note to investors. “This dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players.”
Here’s what you need to know about buying—and selling—Tesla shares.
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How To Invest in Tesla Via a Fund
Investing direct in individual stocks can be a fun, fascinating and, hopefully, profitable experience. It may also qualify you for shareholder perks specific to the company in question.
Investing direct in individual companies can, however, leave you vulnerable to stock market volatility and unforeseen swings in share prices. Nowadays, even a solo tweet—let alone a full-blown geo-political conflict—can send shock waves through the stock market.
That’s why, financial experts recommend that most people invest in a diversified mix of asset classes and funds that hold hundreds, if not thousands, of company shares.
Being a major component of the Nasdaq index, Tesla is found in many “active” and “passive” (index tracker) funds incorporating a bias towards the US.
Note: investing in companies comes with no guarantees. When buying company shares, it’s possible to lose some, and very occasionally all, of your money. Past performance is no prediction of future performance and this article is not intended as a recommendation of any kind.
Frequently Asked Questions (FAQs)
How much are Tesla shares worth?
At the time of writing in late November, 2024, one Tesla share was worth $US338. That is a lift of 85% over the past six months.
Why are Tesla shares up?
Tesla shares surged after the re-election of Donald Trump, owing largely to Tesla CEO Elon Musk’s appointment within the Administration and the widespread view among Wall St that Trump, with his focus on lifting business regulation, will spell good news for markets. Analysts also expect Musk to benefit from Trump’s plan to impose tariffs on imported goods, including Chinese EVs.
How can I buy Tesla stocks online?
If you’re based in Australia, it’s relatively easy to buy Telstra shares online you just need to make sure the online brokerage platform you choose has access to the Nasdaq, which is where Tesla shares are listed. With US shares you can also opt for fractional trading. Just make sure you do your research on the best share trading platform for your needs.
Can I buy Tesla shares on CommSec?
Yes, you can. First, you need to open an international trading account and then you will have access to the Nasdaq, which lists Tesla. For the un-initiated, CommSec is the stock broking platform of Commonwealth Bank.
Does Tesla pay dividends?
As a general rule, Tesla does not make regular cash dividend payments to shareholders. However, it appears to make an exception for stock splits. It carried out a dividend pay-out in 2020 during a five-for-one stock split. And in August 2022 it secured a three-for-one stock split, which allowed the company to pay dividends of two shares for each share.
Does Tesla stock have a future?
There is no certainty with any stock. Although Tesla shares are surging since the re-election of Donald Trump, last year was a volatile space for equities. In 2023, Tesla produced a mixed bag of results: strong revenue, but some constraints around operating margins and a failure to meet analysts’ expectations. So far, in 2024, Tesla has produced similarly patchy results: some challenges in the shape of Chines competition in mid-year results, but strong returns by Q3. Read the Tesla Earnings Reports and undertake your own research to determine whether you should buy the stock.
Does Tesla make a profit?
Yes, Tesla is a profitable company. The EV maker first turned a profit in 2020, and despite economic headwinds at the time, went on to record a $US12.55 billion in net profits for 2022. This came after 17 years of failing to turn a profit, which Musk attributed to supply chain issues and high production costs. With close friend Donald Trump back in the White House from 2025, many analysts are predicting that Tesla will benefit over the coming years.
