Investing in Tesla (TSLA) Stock from India: A Guide
Tesla stands out as one of the most exceptional companies in the realm of luxury automobiles and clean energy. In all honesty, Tesla has established a unique position for itself in the high-end Electric Vehicle (EV) industry, thanks to its extraordinary design and cutting-edge features.
It's worth mentioning that some of their vehicles resemble something straight out of a science fiction film! What's more exciting is that the TSLA stock has witnessed a remarkable increase of over $330 this year. However, one may wonder if it's wise to invest in a stock that is mainly favored due to the devoted following of its owner. Let's delve into the facts and figures surrounding Tesla Inc.
What's the Fuss About Tesla?
Tesla is more than just a manufacturer of vehicles or a clean energy company. It is a brand built on the foundation of innovation and research, driven by the nuanced business expertise of Elon Musk.
Musk's impressive track record of establishing successful ventures such as Zip2 Corporation, PayPal, SpaceX, The Boring Company, Hyperloop, and others presents a solid proposition for investors considering purchasing TSLA stocks.
Top 10 Products from Tesla Inc. (TSLA)
- Model S
- Model 3
- Model X
- Model Y
- Cybertruck
- Energy
- Roadster
- Powerwall
- Powerpack
- Solar Roof
Notably, Tesla is heavily investing in research and development, alongside operating vehicle service centers, supercharger stations, and pioneering self-driving cars. Automotive sales make up the majority of Tesla's total revenue.
A Quick Overview of Tesla Inc. (TSLA) Stock Information
- Stock Name: Tesla, Inc. (TSLA)
- Share Price: $1,067.95*
- Market Cap: $1.072 Trillion
- Beta: 2.01
- P/E Ratio: 348.78
- 52 Week Low: $401.66
- 52 Week High: $1,243.49
Interesting Trivia: Tesla recently became a member of the S&P 500 US Index.
Historical Performance of TSLA Stock
Tesla initiated its IPO in 2010, offering 13.3 million TSLA shares at a price of $17 per share.
As of now, Tesla boasts a market cap of approximately 7 Billion, placing it far ahead of its competitors and making it the largest automobile manufacturer in the world.
Here's a comparison with its rivals in terms of market cap:
- Toyota Motor Corp. (TM): $194.616 Billion
- Honda Motor Co. (HMC): $47.869 Billion
- General Motors Co. (GM): $58.956 Billion
Top 10 Products from Tesla Inc. (TSLA)
- Model S
- Model 3
- Model X
- Model Y
- Cybertruck
- Energy
- Roadster
- Powerwall
- Powerpack
- Solar Roof
Additionally, Tesla continues to make substantial investments in research and development, while also expanding its network of vehicle service centers, supercharger stations, and advancements in self-driving technology. For Q3 2020, automotive sales accounted for 80% of the company's total revenue.
7 Advantages Of Purchasing TSLA Stock
- Continued profitability for a fifth consecutive quarter.
- TSLA shares have experienced a remarkable 400% growth year to date.
- Strong support from millennial and retail investors.
- Recent stock split at a ratio of 5-for-1.
- Production of 140,000 vehicles in Q3, representing a 44% increase compared to the previous year.
- Total revenue amounting to .77 billion, indicating a year-over-year increase of 39%.
- Free cash flow reaching $1.4 billion.
Drawbacks Of Purchasing TSLA Stock
- Negative publicity surrounding Elon Musk.
- Missed manufacturing deadlines.
- Recommendations from reputable traders to short the stock.
How To Purchase Tesla (TSLA) Stock From India?
In brief, there are two methods to buy Tesla stock from India: direct and indirect. The first approach involves purchasing the Tesla stock yourself using a brokerage account.
Indian apps like Cube offer the option to buy US stocks, but you must complete the KYC flow and the LRS process to be eligible for purchasing TSLA shares. The Reserve Bank of India (RBI) permits Indian citizens to invest up to $250,000 through the Liberalized Remittance Scheme.
The second method is indirect and involves investing through mutual funds. International mutual funds are equity funds that invest in shares of foreign companies such as Tesla, Microsoft, and others.
By investing in these international mutual funds, you indirectly gain exposure to Tesla stock without any upper limit on the amount you can invest. Cube's advisor, Wealth First, has handpicked some examples of these international mutual funds on the Cube Wealth app:
- Franklin India Feeder - Franklin U.S. Opportunities Fund
- Motilal Oswal S&P 500 Index Fund
So... Should You Purchase TSLA Stock?
Investing in a company driven by innovation and design might be an enticing proposition. Moreover, the historical returns indicate that TSLA stock has performed well.
However, some experts attribute Tesla's continued growth to the presence of Elon Musk. If this is the general consensus, Elon Musk's controversial remarks and actions could pose a threat to investors who have already purchased TSLA shares.
Although historical growth and benefits suggest that TSLA stock is a good investment, factors such as your risk appetite, investment goals, and financial health can ultimately determine whether you should invest in TSLA stocks.
If you are interested in other US stocks, you can check out our blogs on:
- FB stock
- AMZN stock
- GOOG stock
- BABA stock
Frequently Asked Questions
Q. Is it possible to purchase Tesla stock directly from India?
Yes, you can directly buy Tesla stock from India. You can download an investment app that allows you to purchase US stocks. However, it is important to review existing user feedback and assess the usability of the app before making a decision. Once you have chosen an app, you need to complete the mandatory KYC process and follow the Reserve Bank of India's Liberalised Remittance Scheme (LRS) flow. After that, you can transfer money to your brokerage account and invest in Tesla stock from India.
Q. What is the best way to purchase Tesla stock?
Typically, investors buy Tesla stock from India using an investment app like Cube. This process offers convenience, and you can track the movement of your Tesla stock investment in one place. However, there are a few factors to consider before investing in Tesla stock from India. The RBI's LRS allows you to invest up to $250,000 in the US per financial year. Additionally, both you and your bank must comply with LRS regulations. Furthermore, India and the US have a Double Taxation Avoidance Agreement (DTAA), which means you won't have to pay taxes in both countries.
Please note that the information provided below is current as of 11-11-2021. For the latest and most detailed facts and figures, we recommend checking out the Cube Wealth app. Remember that past performance is not indicative of future results. It is advisable to consult a Cube Wealth Coach or enroll in our US Advisory Service before making any investment decisions with your hard-earned money.
Now, let us explain how the US stock advice system functions on the Cube Wealth app.
Cube Wealth Investment Quotes: "Embrace a long-term investment approach." - Lou Simpson
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