How to invest in Tesla Stock 🚘

​Tesla (TSLA) is an American electric vehicle and clean energy company, founded in 2003 by Elon Musk, the serial entrepreneur and founder of other businesses like SpaceX and more recently, owner and CEO of X (formerly Twitter). Tesla is best known for the production of affordable electric cars such as the Model S and Model 3. In 2021, Tesla also joined a small, elite group of companies worth over $1 trillion. So, if you’re looking to invest in Tesla, this article is a good place to start.

Where Can I Invest in Tesla?

Tesla Inc. is listed on the NASDAQ - the US stock exchange, based in New York. For investors wanting to buy and sell Tesla stock, you’ll need to use an investment platform that offers access to US-based stocks (also known as shares or equities). All of the providers listed on our stocks and shares investment platform comparison page and Stocks and Shares ISA comparison page, offer investors with the ability to buy and sell Tesla shares. If you want to invest in Tesla via an ETF (Exchange Traded Fund), instead of buying the stock individually, you can find a comparison of some of the best platforms for ETF investing.

Does Tesla pay dividends?

No, Tesla does not currently pay dividends and doesn’t show many signs of changing this policy any time soon.

Why is Tesla so popular with investors?

Investors are drawn to Tesla, likely for its blend of innovation, market disruption, and growth potential. The company's leadership, under Elon Musk, has consistently pushed boundaries in both electric vehicles and renewable energy. Despite periodic volatility, Tesla's robust delivery numbers, expanding product lines, and ambitious plans contribute to its appeal among some investors seeking exposure to transformative industries and a bet on the future of sustainable technology.

What are the risks of investing in Tesla?

Tesla's stock comes with notable drawbacks, including its susceptibility to market volatility, particularly given the fluctuations in the electric vehicle sector. Concerns about production challenges, competition, and dependence on government incentives also contribute to the stock's unpredictable nature. Additionally, Tesla's valuation has raised questions about sustainability, leading to debates over its price-to-earnings ratios and potential for overvaluation.

How to buy Tesla shares

If you’ve decided you want to add Tesla to your portfolio, here’s a step-by-step overview of how to invest in the stock, in just a few steps.

Choose a provider

First, you’ll need to find an appropriate investment account to buy and sell TSLA. There are a range of apps, banks, and financial institutions that you can use to access Tesla shares, and we’ve provided a helpful comparison table here to help you choose which provider might be best for you. You’ll be able to compare things like minimum investments and fees of providers that offer Tesla share investing. 

Open an account

Once you’ve found the right provider, you’ll be required to sign up and create an account. This process varies between providers and usually takes no more than 10 minutes for most providers. The process will almost certainly involve some form of KYC (Know Your Customer) procedures. KYC involves verifying your identity, assessing your financial situation, and understanding your investment goals. This is a completely normal part of the sign-up process and is required from a legal and regulatory perspective to safeguard both investors and the broader financial system.

Fund the account

Once your account is set up, the next step is adding money to your account to use to invest in Tesla. Most providers offer several options to deposit and withdraw funds from your investment account, including linking a bank account, debit/credit card, or via Apple Pay or Google Pay. Some providers set a minimum to the amount you can deposit and may charge fees on particular methods, like credit cards so make sure to keep an eye out for this. Also, be aware that each method may take a different amount of time for the deposit to land in your investment account.

Place an order

Once your money has landed in your account, and providing the US market is open, you’re then ready to invest in Tesla. You may use your provider’s search function to find Tesla or its ticker symbol, TSLA. You’ll then be able to choose the number of shares you want to buy and place an order. Given Tesla is a few hundred dollars per share, most providers will enable you to buy a fractional share in the stock, if you didn’t want to purchase a whole share.

What’s the bottom line?

Investing in Tesla, like any investment requires a careful balance of risk and reward. Tesla's innovative strides in electric vehicles and renewable energy have garnered widespread attention, contributing to its volatile stock performance. While the potential for returns of course exists, investors should conduct thorough research, stay informed on wider market trends, and be prepared for the inherent volatility associated with this dynamic and influential company. Finally, remember when you invest, capital is at risk.

Want to learn more?

Interested in investing but don’t know exactly where to start? Try the free Pluto app. Learn investing basics, and practise in a risk free environment with no real money. Find us on the Apple App Store.