I want to buy my 23-year-old one or two shares in Tesla. Call me crazy – I’m not even sure if I can afford one.
My thinking is to hand him his official share and in about two to three years that one share would be worth something and he can continue with it in his own path.
I have never invested in shares but if 2020 has taught me anything, it’s that you cannot win it if you are not in.
Which platform would allow you to purchase one Tesla share? Are there other affordable avenues that can give you exposure to Tesla?
If I can just say, what an amazing idea and gift to receive. We are so used to giving our kids things they can play with and that will have no monetary value in the future. This is just wonderful.
The current Tesla share price as of the date of writing this article is $667.53 and the exchange rate at the same time is around R15/$1.
So to buy one Tesla share will cost those of us in SA around R10 000.
If this is a little steep for just one share, there is some good news.
Tesla is on EasyEquities – this is an online investment platform that allows investors to buy local, American and Australian shares.
One of the many benefits of EasyEquities is that you can buy a fraction of a share.
This means that if you only have R500 available to invest in Tesla now, you can do so by buying a piece of a share (a fraction). In short, you don’t need to wait until you have the R10 000 to buy one share – you can gradually add to your EasyEquities account and buy more and more of that share.
And there’s more good news – you can open the account in your son’s name so that he owns the share right away. If you did have to open the account in your name you would own the share. Might be a nice idea to give him his own EasyEquities account as a gift with the Tesla share already in place on the platform.
He will then be able to invest in his own shares if he would like to, including ones on the JSE.
If buying a direct share is not for you, then I would suggest looking at the Satrix exchange-traded funds (ETFs) that have Tesla within their offering.
The two ETFs are the Satrix MSCI World ETF and the Satrix S&P 500 ETF. These can be found here.
The benefit of an ETF in this context is that you don’t just have exposure to one share, you will also gain access to some other shares like Apple, Microsoft, Visa and more. An ETF is also extremely well priced, usually less than 0.50% per annum.
Thank you for the opportunity to answer your question, I hope that it helps and guides you on the right path. Once again congratulations on being proactive and teaching our child the value of investing.