How to Buy Tesla Stock: 3 Strategies to Consider

Tesla (NASDAQ: TSLA) has breathed new life into the automotive industry by taking what many had seen as a pedestrian, old-economy industry and turning it into a hallmark of innovation. The release of the mass-market Model 3 electric vehicle has many people looking more closely at Tesla both as a carmaker and as an investment, yet the share price has already climbed so far that many people aren't sure how to buy Tesla stock without taking on a lot of risk. The following three strategies offer ways to get exposure to Tesla, and each has pros and cons that could make one of them the best pathway to investing in the automaker over the long haul.

The simplest way to buy Tesla stock is simply to figure out how much money you have to invest in the company and then buy shares in one fell swoop. The key advantage of this simple method is that you get all of your available money working for you as quickly as possible, giving you full exposure to future increases in the stock price. Given the speed at which Tesla shares have climbed during the past several years, many investors who delayed in making purchases have regretted their decision. Making a single purchase also keeps you from having to consider more complicated strategies that require you to pay closer attention to the stock over a longer period of time.

The downside of a single purchase is that if the current price turns out to be a high point for Tesla, then you've committed all of your capital at what turns out to be an inauspicious time. For long-term investors who believe in the carmaker's prospects, future growth is likely to dwarf the differences in timing an initial purchase. If you have a shorter timeframe, then a single upfront purchase carries more risk, and alternatives like the ones below could fit your risk profile more closely.

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Source: Fool.com