By now, absolutely everyone is aware that the world is moving towards the use of renewable energies and non-polluting mechanisms. And Tesla is the most successful and outstanding company in this transition.
Tesla was founded by Elon Musk, together with two partners, in 2003 with the aim of designing, manufacturing and selling electric cars. It is precisely for the manufacture of high-performance electric vehicles that the company is best known.
However, Tesla also produces parts for electric cars that it sells to other brands, solar panels and batteries that can supply electricity to a house. To this we must add that Tesla's business model encompasses all processes from manufacturing to delivery to the customer.
Therefore, we can find that Tesla, although headquartered in California, has from several huge factories distributed in the United States to its own Tesla dealerships and specialized service centers. In addition to projects already underway in Europe and China.
What can we expect from Tesla in the future?
Being a technology company, Tesla will always go down the path of innovation, constantly improving its existing products and developing new ones. And this behavior can be observed by studying the path taken by the company since its founding.
The first vehicle marketed by the company was the Tesla Roadster, unveiled by the company in 2006. Being its first delivery in 2008 with a value of 109 thousand dollars and with a range of 322 km for a two-seater car.
Since then it has advanced to the model Y, which offers a vehicle with 5 to 7 seats and with a range of up to 480 km at a cost ranging from 39 thousand dollars. This is not to mention the projects that Tesla has underway, with which it promises us great advances.
If you are wondering how it is possible to improve quality and lower costs, the answer is only one: innovation.
Finally, Tesla's progress is also reflected in its stock market price since it made its appearance in 2010 at $17 per share, up to the values we have today. Therefore, Tesla must be taken into consideration when investing.
Assets you can trade
What do you know about Exchange-traded funds? They are similar to index funds and are known for merging the advantages of stocks and mutual funds, because they can be traded regularly at market price, but include a much wider diversity of assets and considerably lower rates.
Forex or currency trading allows obtaining profits by exchanging one currency for another.
If you decide to exchange the EUR/USD pair, you acquire euros at their price in dollars, with the expectation that the euro will raise its price compared to the dollar. Therefore, if you bought each euro for 1.15 USD and you sell them back when they cost 1.20 USD, you'll be keeping that margin.
You may be thinking by now that this form of trading requires investing considerable amounts, and you are not wrong, because fluctuations are usually minimal, and often you will need to use a lot of leverage (which sometimes can be too much of a risk). Our advice for those who are new in the world of trading is not to start with Forex, but with a safer and simpler market.
You can exchange with almost every currency on this broker but take into account that in this market sales are made through CFDs, which means the underlying asset won't be yours.
About Contracts for Difference
It is possible that you have seen the term CFD more than once if you entered this broker before. Before we come back to this, we must say that cryptocurrency trading on the platform is only CFD when you are short-selling.
We will also explain concepts such as leverage and “going short”, in case you are considering day trading cryptocurrency or more advanced operations.
The advantage of this broker is that it lets you bet both “in the black” and “in negative”. In a hypothetical case: you are sure that the Tesla will fall, so probably you think that the best thing to do is refrain from getting in until it does. Nevertheless, if you are pretty sure that it is going down, why not take advantage of that and making money?
You can accomplish that by “going short”. Here's how it works ,roughly:
- You ask someone to lend you, for instance, 100 units of Tesla, which cost $ 5,000 at the moment (these numbers are made up)
- Then, you sell them at their price on the market, $ 5,000
- As you presumed, the price falls, and the unit of Tesla now costs $ 30 instead of $ 50
- Again, you buy the 100 units, but now they are worth $ 3,000
- Then you pay back the 100 units
- The difference is yours, so, you will have made $ 2000
It all sounds more complicated than it really is. Just keep in mind that by trading in Tesla on this broker, you can make money if you anticipate downs in the price.
Do you know what leverage is? We'll put it simply: trading lets you invest more money than you can have in a given time. Let's say that you have $ 100 and you choose to leverage x2, you will be really investing $ 200.
About leverage, Take Profit and Stop Loss
Assuming that, for example, you are certain that Tesla price is going up, and that you have $ 1,000 for “going long”, you should know that you have the option of investing more and making more money.
Perhaps you could go to your bank, ask for a loan, wait for it to be accepted, wait for the money, and then acquire Tesla… Nevertheless, once you've managed doing all that, probably Tesla would be already much higher (if your prediction got confirmed), and it wouldn't be a good idea to invest.
With leverage, you can get that amount of money just by moving a finger. It's just like borrowing money, but much better: from the broker itself. You can get financing to operate with much more money than you actually have on the the broker wallet. It is very simple, before investing you will see the different options as in the image below:
Trading with other assets allows you to use higher leverage. Why? Because leverage is most used for short-term operations or day trading, and cryptocurrencies tend to be a medium or long-term investment. But let's explain how leverage works with the previous example:
- If you want to invest $ 1,000 and you use leverage x2, you will be starting with $ 2,000 ($ 1,000 are a “loan” from the broker).
- A few days later, Tesla price does increases, as you assumed, and now the price of your investment is $ 2,400 (20% higher), so you decide to sell back.
- Once the $1,000 from leverage is deducted, you will have $ 1,400 left; which means you've earned $ 400, since the other $1,000 was yours initially.
By starting with $ 1000 and getting $ 400, you'll be earning 40% of your investment. That is pretty good.
But there's always a drawback. If all goes as you intended and the price rises, you will make money. Nevertheless, if the price falls, you will also lose more money really fast.
Let's say that the price didn't increase by 20%, but it decreased also by 20%, you won't lose $ 20 but $ 40, because of the leverage. Because of that, the concepts of Take Profit and Stop Loss are fundamental when trading with leverage.
Take Profit is a trading limit you can set for your assets: you program your operation and ask the platform to sell them once they get to a point above the entry price. For instance, you can buy Tesla shares at $ 100 and request that your position is closed automatically when it goes up to $ 120. It is very helpful to avoid being blinded by greed: a 20% profit is usually very good, but once you see it goes up, you might want to gain a bit more and decide to wait, but this could be a mistake. So, Take Profit helps you to trade more safely.
Stop Loss is even more necessary, mostly if you trade with leverage, since a small loss with leverage can be fatal for your wallet. You always need to mark a Stop Loss more conservative than that suggested by the broker.