Despite typical market trends, where companies struggle to remain popular against other high-value stocks, Tesla (TSLA) is the most traded stock on Tiger Trade week after week. Maintaining a strong stock value in the early months of 2023, Tesla continues to grow, with a 72% increase in trading volume this week.
Tiger Trade users are opting to invest in the EV front-runner, supporting global trends that suggest Tesla is not going anywhere, anytime soon. But what makes Tesla so popular with individual investors - and why does it continue to outperform an increasingly competitive market?
Tesla continues to lead in innovation
Led by innovative entrepreneur Elon Musk, the brand has a future-focused strategy that allows it to remain at the forefront of technological development and quality. Operating under two divisions, ‘Automotive’ and ‘Energy Generation and Storage’, Tesla has expanded their operations beyond EV design and manufacturing, to include renewable energy storage and sale. Last year, Tesla produced 58 percent of EVs sold in Australia establishing itself as the go-to name for the forward-thinking market of battery-powered motors and the gold standard of EVs.
Tesla suffered its worst year in share performance in 2022 as investor confidence and consumer demand fell. However, its strong quarterly productivity and continued technological advancement have supported a strong rebound to again hold the top spot.
The question on investors’ lips at its 2023 Investor Day, held in March this year, was whether Tesla shares can continue to perform at their current level. Tesla’s recent quarterly report reflected positive revenue growth, nearly 2.5 per cent higher than expected, while productivity promises to grow with an outlook to producing 20 million cars per year by 2030.
Investors were disappointed, however, that Tesla failed to announce any new product at the March investor day, which adversely affected short-term stock value and may have long-term impacts on the company’s profitability and future performance.
As established vehicle manufacturers continue to develop EVs, Tesla is expected to face increased competition in the EV market. In Australia alone, car manufacturers including MG, Hyundai and Kia have entered the EV market, offering cheaper alternatives to compete with Tesla’s premium offering, while Mercedes-Benz and Porsche compete on luxury offerings. The brand also faces additional regulation compared to traditional vehicle manufacturers, with global standards imposed on manufacturing requirements, as well as individual country standards imposing barriers to vehicle sales.
How to buy Tesla shares in Australia
Tesla (TSLA) shares can be traded on the US stock exchange. Tiger Brokers offers easy access for Australian investors to trade US stocks, with no brokerage fee* in the first three months. With Tiger Brokers’ fractional shares trading, investors can purchase partial shares in top-performing companies like Tesla, starting from as little as USD1.
From opening an account with Tiger Brokers, investors can explore a range of stock opportunities across Australian, Hong Kong and US exchange markets, encouraging the development of a diverse portfolio. More recent additions to the Tiger Trade platform allow investors to purchase fractional shares on the US market, as well as different types of assets including ETFs and stock options to minimise overall risk.
Supporting your investment journey
Tiger Brokers provides a range of features to support investors throughout their investment journey; whether new to trading or seeking to expand their portfolio, the platform’s social forum allows investors to ask questions and learn from the experiences of other Tiger traders, enabling them to make informed investing decisions. The auto-invest tool also enables users set an amount from as little as USD1 in fixed regular payments to invest in US stocks and ETFs that they want to buy, diversifying risks by putting investing on repeat.
*Pass-through fees and T&Cs apply
Disclaimer:
Capital at risk. See risk disclosures, FSG, PDS, TMD and T&Cs via our website before trading. Information provided may contain general advice without taking into account your objectives, financial situations or needs.
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