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I Want To Buy Tesla Stock REPACK

The price of Tesla shares then began trading on a split-adjusted basis the following day, August 25. A stock split has no impact on the overall value of the company or the value of your total investment. The share price is adjusted down to reflect the increased number of shares that are now outstanding.

i want to buy tesla stock

With dollar-cost averaging, investors add a set amount of money to their position over time, and that really helps when a stock declines, allowing them to purchase more shares. High-flying stocks can dip from time-to-time, so the strategy can help you achieve a lower buy price and higher overall profits.

Over the trailing-10-year period, few S&P 500 components have delivered for shareholders quite like electric-vehicle (EV) manufacturer Tesla (TSLA 2.48%). Even after a pullback that's seen Tesla stock lose close to two-thirds of its value, shares are up nearly 5,900% in a decade.

But despite Tesla's outperformance since going public, it's a stock that I wouldn't buy with free money. While recognizing that it's North America's leading EV manufacturer, I wouldn't touch Tesla stock with a 10-foot pole for the following seven reasons.

The fifth reason to not buy Tesla stock (even with free capital) is its valuation. As I noted above, optimists love to value Tesla as more than a car company. But its operating results clearly show that its profitability is entirely dependent on selling EVs and, to a far lesser extent, on selling renewable energy credits and leasing its EVs.

Even with Tesla's stock getting clobbered over the trailing 12 months, it's still valued at an aggressive multiple of 34 times Wall Street's consensus earnings. Not only do I believe this earnings-per-share estimate will continue to fall throughout the year, but I see no justifi