How to trade Tesla shares CFDs

Tesla (TSLA) is a leading American electric vehicle (EV) manufacturer. Let’s explore the advantages and limits of trading Tesla, some potential ways to trade Tesla stocks, and how to trade Tesla shares with Contracts for Difference (CFDs)

Facts about Tesla

1. Tesla is a car company that manufactures electric vehicles (EVs).
2. Tesla was founded in 2003.
3. Tesla’s revenue mostly comes from the automotive sector (95%), but the company also makes money from energy generation and storage (5%).

Benefits of trading Tesla shares

Growth Stock: Tesla's status as a growth stock in recent years is driven by its distinctive combination of car manufacturing and technological innovation. Growth stocks are typically valued for their potential to generate rapid earnings increases in the future. Tesla's position is bolstered by its expected leadership and pioneering strategies in the rapidly expanding electric vehicle and clean energy sectors.

Successful car company in the world: Tesla’s narrative is one of groundbreaking innovation and disruption. The company has positioned itself as a frontrunner in the electric vehicle revolution, taking on the traditional automakers and reshaping the automotive industry landscape. As of the end of April 2024, Tesla’s market capitalization is more than $608 billion, which makes it the most valuable car company globally. Tesla has been in this position since 2020.

World’s best seller of battery electric cars: As of the first quarter of 2024, Tesla holds the top spot as the world’s leading seller of Battery Electric Vehicles (BEVs).

Advantage of Trading Tesla with CFDs?

Long and Short Positions on Tesla: CFD trading allows you to trade in both rising (bullish) and falling (bearish) markets, giving you the flexibility to profit from various market conditions.

Accessibility: CFDs enable traders to use leverage and margin trading, which means you can start trading with relatively small amounts of capital. CFD trading platforms are accessible online, allowing you to trade using a computer, tablet, or smartphone with an internet connection.

Diversification: CFD providers typically offer trading across a range of assets, including shares, Forex, commodities, indices, and cryptocurrencies. This variety allows traders to potentially build a diversified portfolio.

How to trade Tesla shares on CFDs

CFDs on Tesla enable you to monitor the price movements of Tesla shares without actually owning the shares. Instead, CFDs involve a contract with a CFD provider, such as Plus500, to settle the difference in Tesla’s price between the time you enter and exit the position.

Example:
Imagine Tesla shares are priced at $190 each, and you wish to buy 10 shares, which totals $1,900. With CFDs, you can use leverage to trade Tesla without needing to invest the full $1,900 or actually own the shares.
You can realize profits by closing your CFD position when Tesla’s price increases above $190 from your entry point. Conversely, losses will occur if you close your CFD position when the price drops below $190. Keep in mind that overnight funding fees and other charges may impact your overall profit or loss.

When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.Trading cryptocurrency CFDs and spreadbets is restricted for all UK retail clients