How does FIFO (First In, First Out) affect my average share price?

We currently sell your shares based on the "First-In, First-Out" method. According to this principle, your oldest shares (the shares you acquired first), are sold first, and your average price is updated to reflect this.

Therefore, if your oldest shares were bought at a lower price, and you sell some shares, your average price will become higher. Vice versa, if the shares you acquired first were at a higher price relative to the newer shares, your average cost basis will be adjusted lower after you sell some shares.
Simply speaking, First in, first out (FIFO) means that the longest-held shares are sold first.
For example: If you purchased 1 Tesla share at $50 and another Tesla share a week later at $55, then the average price would displayed as $52.50. If you then sold 1 share (this would be the first share purchased), your new average price would be $55.00 as the calculation would no longer include the first share purchased