How to buy Tesla (TSLA) shares

Shares in the manufacturer of electric vehicles Tesla have risen sharply in recent years. This guide takes you through how to buy Tesla shares and how to time your purchase.
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Updated: Sep 23, 2022

Where to buy Tesla stock

If you are trying to find the best place to buy Tesla stock, look no further than the list below. Tesla is a publicly traded company and its shares are available to buy on many stock exchanges and brokers. Our team of experienced analysts have compared all the best trading platforms against each other to help you make the right choice. If you’re not quite ready to invest, then just scroll past the table to learn more.

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How to buy Tesla stock, a step-by-step guide

Investing in Tesla is simple, so don’t worry if you’re new to stock investing. These are the steps to follow in order to complete your investment:

1. Choose a broker and create an account

To invest in Tesla stock you will find it easiest to use an online brokerage platform. There are many different options to choose from, each with its own unique benefits and drawbacks. The comparison table above can help you select the right broker for you.

Once you have selected a brokerage account, simply go to their website and follow the steps to register an account. When you have signed up, log into your account and select the option to deposit the amount you wish to invest. Most brokers accept bank transfers and debit card payments and some even accept e-wallets like PayPal.

2. Decide how much to invest

Budget is key. You must only invest what you can afford to lose, so ensure you have set a budget and plan your investment accordingly. It’s recommended that you spread your money across different investments, so it’s not a good idea to put all of your funds into a single stock. Tesla in particular can be quite volatile, so you may experience a lot of ups and downs.

You should also consider how much each stock costs before you can buy Tesla stock. The price of the shares of some companies like Tesla can be quite expensive so your budget may not allow you to buy a full share. If that’s the case you could consider investing using CFDs or ETFs that include TSLA.

3. Research Tesla and its potential

Before you go ahead and buy Tesla shares, you’ll need to take the time to research it. You can look at things like its annual report, where you will find lots of financial information to help you decide. It’s also helpful to consider the wider market it operates in and look into its competitors.

The electric vehicle market is constantly evolving and there are always new players looking to join. Some of the more traditional manufacturers like Ford and Mercedes have started making electric cars, as have newer businesses like Lucid Motors and Nio. Who you think will gain the largest market share in the future could help guide you with your investment.

4. Place an order for TSLA stock

Now navigate to the shares section on the broker’s trading page that you have signed up to. Here, you can search for Tesla’s ticker symbol (TSLA) and see the current price at which the stock is trading. If you’re happy with the price, enter the number of shares you wish to purchase and place your order.

5. Execute your order

Your order will either be executed immediately or there may be a slight delay if you place your trade outside of market hours. Once it’s live you’ll be able to monitor it in the open positions area of your brokerage account. Here you’ll be able to make any changes like buying more or selling some of your shares.

6. Review your investment regularly

When your position has been opened you will want to monitor it at regular intervals. The stock market can change very quickly and that is even more applicable to fast moving companies like Tesla. For added peace of mind, it can be helpful to use a stop loss that will automatically close your position when a certain price level is hit.

What is Tesla? And should I invest?

Tesla is arguably the world’s most famous electric car manufacturer. Originally founded under the name Tesla Motors in 2003 by Martin Eberhard and Marc Tarpenning, Tesla has been run by charismatic and controversial CEO Elon Musk since 2008. To date Tesla’s Model 3 is the best-selling electric car of all time.

The question of whether you should put your money in Tesla stock depends on your investment goals and whether you believe the company will keep growing into the future. You also need to consider whether you’re going to adopt a long term investment approach or a more short term trading strategy.

Tesla’s share price has experienced substantial growth since the turn of the decade, although it’s also encountered some swings lower in that time. It can be quite a volatile market so if you plan to invest, you should be prepared for periods of extreme volatility. It would be best suited to a well-balanced portfolio which includes some stable stocks too. 

How has the company performed in recent years?

After being founded in 2003, Tesla shares traded at under $10 for nearly a decade – finally breaking this barrier as the stock price rose in April 2013. After this point, the stock performed well as Tesla released more models and started to expand its business.

In early 2020, Tesla reached a market capitalisation of $86 billion – making it the most valuable automaker in the history of the USA. The stock surged on the cusp of the pandemic but this was short-lived as it was just ahead of a steep decline when the pandemic began and markets plummeted.

However, unlike its competitors, Tesla has come back fighting on the rebound. The stock has since hit a few milestones with its market price. Most notably in late 2021 when its share price surpassed the $1000 mark. The company is now the most valuable car manufacturing company in the world ahead of Toyota and the stock has been added to the S&P 500 index.

Remember that past performance is not an indicator of future performance and you should perform due diligence before investing in volatile stocks such as TSLA.

Is it a good time to buy Tesla shares now?

It could be and if you anticipate the electric vehicle sector to continue growing then buying market leader Tesla, could be a good way to ride the trend. It’s also heavily invested in cryptocurrencies, most notably Bitcoin, of which it owns over $2 billion worth. That amounts to roughly 10% of its total liquid assets invested in the digital currency. 

If you’re looking to trade Tesla in the short term, then your ability to undertake technical analysis and read price charts is more important than the stock’s current price – meaning it’s rarely a bad time to invest.

If, however, you want to hold Tesla shares for the long term then it’s best to look into the fundamentals of the company and see if you expect it to grow in the future. Investing involves risk but to help you figure out if now is the right time to buy Tesla stock, review our most recent analysis of Tesla and the way the stock is performing in the markets right now:

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Ways to invest in TSLA

  • Buy Tesla shares. The most common way to invest in Tesla is to buy shares in the company. This means you will own a piece of the business and your investment will rise and fall in-line with how well Tesla performs. 
  • Invest in Tesla ETFs. Exchange traded funds are one of the simplest ways to invest in Tesla. An ETF invests in lots of different companies and tracks the performance of a specific industry or index. There are lots of ETFs that include Tesla stock. 
  • Invest in Tesla funds or trusts. Similar to ETFs, funds invest in lots of different companies. However, unlike ETFs, funds are managed by an expert who buys and sells assets according to their own expertise. 
  • Trade Tesla. If you have a short term outlook for Tesla stock, then trading will be your best option. It’s a good idea to learn how to read price charts and conduct technical analysis before trading so you are able to profit from short term movements
  • Spread betting. Spread betting is a cost effective way to make short term trades on Tesla stock. With spread betting you can bet on a company to rise or fall in price and you don’t actually own any shares. One of the main benefits of spread betting is whatever profit you make is tax free.

Is Tesla stock a buy?

Most analysts have a buy or outperform recommendation for Tesla. They view it as the best EV manufacturer around and many have a price target above $1,000 per share. Some Tesla forecasts are more pessimistic, but that is often based on the stock being overvalued rather than a weakness in the company.

What are the risks of investing in Tesla?

Even a company as well established as Tesla comes with risk. It’s important to do your research before investing any money. The list below includes the main issues that could hurt the Tesla price.

  • Competition. There are a lot of electric vehicle manufacturers. Companies like Lucid Motors, Rivian, and Nio have developed their own technology and represent a threat. Likewise, traditional auto manufacturers like Ford, Toyota, and Volkswagen have all spent a lot of money to create their own electric vehicles.
  • Fall in Bitcoin price. Tesla bought billions of dollars worth of Bitcoin in 2021. A significant fall in the Bitcoin price would damage Tesla’s balance sheet.
  • High valuation. Price to earnings is a metric that measures how expensive a stock is relative to its income. Tesla’s P/E ratio is over 200, which is very high. Most analysts who forecast a price fall base their argument on the fact that this number is unsustainable.
  • Twitter takeover. Elon Musk’s Twitter takeover has raised concerns over where the CEO’s priorities are, and how much time he has to dedicate to Tesla. The takeover is also being funded in part by loans that are secured against the value of Tesla stock. If Tesla’s stock were to fall, it could have a serious knock-on effect.

FAQs

Can I buy less than 1 share of Tesla?

Yes, although a single share costs around $1,000. If that is too expensive, some brokers let you buy a fraction of a share, so you could invest $100 to own 1/10th of a share in Tesla.

Is Tesla stock a good buy?

Yes, according to a majority of financial analysts. Out of 20 forecasts in the last six months, 18 analysts raised their target price for the stock. A big reason for this is that Tesla recently opened a new factory in Germany that could produce more than 1,000 vehicles a week.

Is Tesla a good stock to buy 2022?

It is if you agree with long term forecasts that see the price at over $4,000 in the next five years. That’s the view of ARK’s Cathie Wood, who expects the stock to quadruple in value by 2026.

Did Tesla announce a stock split?

Yes, Tesla plans to split its stock again. There aren’t many details available at the moment, but its last stock split was at a 5:1 ratio. It could do the same thing again. This can’t take place until after its next Annual General Meeting, which means it might not be until 2023.

Do Tesla pay dividends?

No, Tesla has never paid a dividend and is unlikely to do so any time soon. It invests any extra money into growing the company rather than paying it out to shareholders. If you’re looking for a company that can pay dividends to shareholders, you may want to explore some of the best dividend stocks in our guide.

What is a good price to buy Tesla stock?

Between $1,000 to $1,400, according to a majority of financial analysts. There is a wide range of views, however, and it depends on what you think about its potential market for electric vehicles and energy storage. Check the price before you buy Tesla stock. You may see a price difference depending on the stock exchange where it’s traded, TSLA is available in some of the biggest ones in the world such as the Nasdaq stock exchange.

Who owns the most Tesla stock?

Elon Musk. He owns roughly 170 million Tesla shares, which makes him the largest shareholder with 17% of the total.

Will Tesla stocks crash?

It’s very hard to predict whether a stock is going to crash. As Tesla is such a large and popular company, there would have to be a significant change in its business performance to cause a crash. It can experience quite dramatic short term falls, however.

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Prash Raval
Financial Writer
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