How To Buy Tesla (TSLA ) Shares – The Definitive Guide

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To buy Tesla shares in the UK you need a stock broker that provides access to US shares. In this guide, we will look at what you need to know to be able to buy Tesla (TSLA ) shares in the UK. As well as identifying the best way for you to do that in the most efficient and straightforward manner.

Related guide: Read our Tesla share price analysis to see if now is the right time to buy.

How to buy shares in Tesla (TSLA) from the UK

The key steps you need to follow to buy Tesla shares are:

  1. Choose an investment platform (you will need one that offers US stock investing)
  2. Open an account
  3. Add funds
  4. Set up the order
  5. Completing the order

To be able to buy shares in Telsa, which trades under the ticker symbol TSLA, you will need to choose a stockbroker and then open a brokerage account at your chosen firm.

You will then need to add funds to your new account and once that’s done you will need to decide how much money you wish to invest in Tesla, and what the best way to make that investment is, whether, for example, you put your money in all at once, or spread it over a period of time.

Choosing a Broker

The first thing to consider when choosing a broker is that you should only deal through an FCA-regulated business where your money and assets will be protected under UK law and by the Financial Services Compensation Scheme. Protections that you won’t get if you deal with a firm that isn’t regulated in the UK.

The next thing to think about is whether the broker offers the services you need. In this case, does it allow its clients to buy and hold US stocks? If it does, what does it charge for this service, and are there any restrictions on deal sizes and minimum ticket charges?

Open An Account

Once you are happy that you have found a firm that offers the services you require at a competitive price. The next thing to do is to open a share trading account with the firm.

A share trading account will allow you to deal dealing in physical stocks and shares and funds. Those assets will usually be held in custody on your behalf by the brokerage firm or their agents.

Opening a brokerage account will require you to fill in an application form, usually completed online. You will need to provide the firm with details such as your name and address, a contact telephone number and email address. You may also be asked some questions about your finances and your investment experience and goals, be honest when you answer these questions.

The broker will want to verify your details and confirm your identity for anti-money laundering purposes. That verification process can normally be done online but on occasion, the broker may ask you to submit supporting documents, such as a passport or driving licence to verify your ID, and or, a recent utility bill or bank statement to confirm your address.

Once your application has been approved your account will be open.

Adding Funds

However, before you can use your new share trading account you will need to fund it, which means you will need to deposit money into the account.

To do this you will need the correct payment details from the broker, bearing in mind that some brokers allow you to fund and run your share trading account in currencies other than sterling.

And if thats what you are intending to do you will need the specific payment instructions for say, US dollars.

Whichever currency you are funding your account in you will need to think about where the money is coming from. It can only come from an account held in your name, not your partner’s or a relative’s name.

What’s more, to prevent money laundering the broker will only be able to return any money, back to the account from which it was first sent.

Once you are happy with which bank account and which currency you are funding your share trading account from, and with, you will need to choose your payment method which can include an online bank transfer, a telegraphic transfer, also known as TT or wire transfer, a debit card payment or even a cheque.

A debit card or bank transfer will likely be the fastest and most efficient method.

However, there may be restrictions on the amount of money that you can transfer, at any one time, using these methods.

For larger transfers, a TT or Chaps payment, which you can arrange with your bank in advance, maybe a better bet.

Setting Up The Order

As we mentioned above once you have opened and funded your share trading account you will now need to consider what size of investment you wish to make into Tesla (TSLA) shares you may also wish to consider what price you want to pay to own those shares.

For example, you may believe that Tesla stock is overvalued at $260 per share but that $240 represents an attractive entry point in which case you might want to use a limit order to buy a set amount of Tesla stock at $240 per share should the price get back there.

Alternatively, you may not be too worried about the current price but instead want to build up a core holding in Tesla stock by investing a regular sum, say £500 each month. Many brokers offer regular savings and investment plans which can be funded through direct debits,

Or perhaps you just want to own Tesla stock right now regardless of the price in which case you want to place a buy-at-market order through your trading platform.

To place an order you will need to login into your trading platform and create a new deal ticket selecting the stock you want to trade, the direction of the trade, in this case, buy, the number of shares you wish to purchase and the order type.

If you select a limit order you will need to nominate your limit price and the length of time the limit order is valid for. Though your broker may have a default setting for this, for example, GFD or Good For the Day – meaning the order will lapse at the close of business if it hasn’t been executed.

If you select a market order then once submitted your order will be executed immediately at the best available price.

Completing The Order

Once you are happy that you have entered the order correctly you will need to submit it to the broker but before you do that it’s always worth double-checking that you have selected the right stock, the correct quantity of shares, the right trade direction and order type.

If you have sufficient money in your share trading account to fund your trade, then when you click enter or submit, your order should be accepted and will either be executed immediately or worked as a pending order.

However, if the order has been entered incorrectly or if you don’t have cleared funds to trade the the order will be rejected.

When your order is executed, you will receive a confirmation from your broker. The confirmation will contain details of the trade, including the number of shares traded, whether they were bought or sold. The price that the order was traded at, the time of submission and execution of the trade, and the settlement date, thats the point at which cash and shares are exchanged to complete the deal.

Our Expert Says

"As well as being a high growth stock, Tesla is also a high risk stock. So make sure you are prepared for the ups and downs of volatile stocks. By choosing a low cost investment platform you can keep costs down."
Richard Berry
Richard Berry
Good Money Guide Founder

Where Can I Buy Tesla (TSLA) Shares?

You can buy Tesla shares through a stockbroker or share trading platform you can choose from execution-only firms to full services brokerages which you choose to deal through will depend on your circumstances and needs. However, you should always choose a broker who is authorised and regulated by the UK FCA.

One of the most highly rated platforms is Interactive Investor, which won the Good Money Guide award for Best General Investment Account in both 2022 and 2023.

CMC Invest is a relative newcomer to share trading, but it charges clients no commission on UK and US stock trades, other popular providers include IG Group and US-listed Interactive Brokers, Hargreaves Lansdown and AJ Bell.

Should I Buy Tesla (TSLA) Shares?

That’s a decision that you will need to make yourself however there are several factors to consider when you make that decision.

Tesla is a growth stock, that is despite its $812 billion market cap, it is still establishing its business. Which includes, the manufacture and sale of Electric Vehicles or EVs, the development of battery technology for use in energy and infrastructure projects, and the creation and maintenance of a network of EV charging points in its principal markets.

Tesla is led by the colourful entrepreneur and billionaire Elon Musk who is no stranger to controversy.

As a leading growth stock, Tesla trades on a high PE multiple that is more than 3.50 times the average for other S&P 500  and Nasdaq 100 stocks.

Tesla competes against established Auto manufacturers who have launched their own EV  ranges in direct competition with Tesla.

Tesla stock has risen by +1150% over the last 5 years, but it is only up by +13.50% over a two-year time frame.

Buying Tesla (TSLA) Shares From The UK – W-8 BEN Forms

When UK investors buy US shares the US tax authorities require them to fill out a form known as  W-8BEN. The form provides the IRS with information about your tax status in the US, which can be used to levy the correct rate of withholding tax on any dividends you may receive from US stocks that you own. Once complete the form is valid for three years

How To Invest In Tesla (TSLA) Shares Via A Fund

You may wish to Invest in Tesla shares and want to diversify your exposure at the same time one way to do that would be to invest in fund or ETF that has a holding/weighting in Tesla but which also invests in a range of other companies at the same time.

Tesla is a large-cap equity a growth stock and a  member of both the Nasdaq 100 and S&P 500 indices which means that there are many funds, and ETFs that hold the stock.

Some well-known examples would be QQQ  the Invesco QQQ ETF that tracks the performance of the Nasdaq 100 index, SPY the S&P 500 SPDR ETF, or VOO the Vanguard S&P 500 ETF, both of which aim to replicate the returns of the S&P 500 index

Alternatively, you could consider a managed fund instead of an ETF. For example, the UK-listed Scottish Mortgage Investment Trust (SMT) has 5.20% of the fund invested in Tesla shares.

You can invest in these funds and ETFs directly through your share trading platform or stockbroker.

Where Is Tesla (TSLA)Traded?

Tesla is listed on the Nasdaq exchange, which is one of the two principal marketplaces for US shares. Tesla shares are traded on Nasdaq. but are also traded on a number of MTFs or Multilateral Trading Facilities. These are alternative execution venues and they operate away from, and in competition with major exchanges, some of these alternative execution venues specialize in facilitating retail broker’s equity business.

Conclusion

When it comes to buying shares in Tesla it’s important to choose the right broker or share trading platform, one that suits your needs, and that is properly regulated.

You will need to consider factors such as account size, commissions and other fees, the share trading platform and the type of orders you can submit. That’s a lot to think about, particularly if you are new to share trading and investing.

However, The Good Money Guide was set up to help you find the answers to these questions and more. Our expert insight and easy-to-read reviews will help you to make the correct choice.

Tesla (TSLA) Shares FAQs

No, Tesla is a growth stock and it is still investing in its business and therefore does not pay dividends to shareholders. Read our guide on dividend investing.

No, To buy Tesla shares you will need to open a share trading account with a stock broker or other provider.

Tesla had an IPO on June 29th 2010, at a price of US$17.00 per share.

You can buy a minimum Tesla share in the normal way. However, by using fractional share trading you buy a smaller amount.

Since its IPO Tesla shares have undergone two stock splits and there are currently just under 3.17 billion shares in issue, giving it a market cap of US$829.60 billion.

The current Tesla (NASDAQ:TSLA) share price is $177.46 which is a change of 2.62 or 1.5% from the last closing price of 177.46 with 77,445,845 shares traded giving Tesla a market capitalisation of £556,065,607,237. The most recent daily high has been 179.63 and daily low 172.75. The Tesla share price 52 week high has been 299.29 and the 52 week low 138.8. Based on the most recent Tesla share price opening of 177.46, the current Tesla EPS (earnings per share) are 3.91 and the PE (price earnings ratio) is 45.39. Price last updated 17/05/2024 16:00.

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