rtmark
LearnBonds UK

How to Buy Tesla Shares in 2020 – A Beginner’s Guide

Looking to buy Tesla shares but not sure where to start? Read our guide on how to buy Tesla shares today.
Kane Pepi
Author: Kane Pepi

Last Updated: October 12, 2020

Tesla is an American electric car manufacturer and renewable energy innovator that has seen its shares grow exponentially since the firm first went public in 2010. Listed on the US-based NASDAQ exchange, if you’re from the UK and wish to buy Tesla shares, you will need to use a broker that gives you access to international equities.

In this guide, we walk you through the process of buying Tesla shares from the comfort of your home. This includes finding a suitable UK share broker, opening an account, and then completing your Tesla share purchase. We also take a look at the history of Tesla shares to help you decide whether it’s a good investment.

Table of Contents

    How to Buy Tesla Shares in 3 Quick Steps

    Don’t have time to read our guide in full? Below you’ll see three quick steps that you need to follow to buy Tesla shares right now.

    Step 1: Open a Trading Account

    eToro to Buy Tesco Shares

    To buy Tesla shares, you need a broker that provides access to the NASDAQ, such as eToro.

    Step 2: Deposit Funds

    Fund your trading account

    You will need to deposit funds with a debit/credit card, e-wallet, or bank account.

    Step 3: Buy Tesla Shares

    Search for Tesla shares, enter the number of shares you wish to buy, and confirm the order.

    75% of retail investors lose money when trading CFDs with this provider.

    Where to Buy Tesla Shares?

    Although Tesla shares are listed in the US, the process of making an investment in the UK has never been easier. You just need to find a share dealing platform that gives you access to the NASDAQ exchange. There are many brokers that offer this, so you need to narrow down your options and find the right one for you.

    With so many options on the table, below we discuss some of the most popular UK stock brokers that allow you to buy Tesla shares at the click of a button.

    1. eToro – Best Share Broker for UK Customers

    eToro is popular with UK investors for several reasons. Launched in 2009 and now home to over 12 million traders, eToro gives you access to more than 800 shares. This covers hundreds of UK-listed companies, as well as firms based in the US, Canada, Saudi Arabia, Hong Kong, and more. Unlike most platforms, eToro allows you to both buy shares and trade share CFDs.

    One of the main reasons that UK investors opt for eToro to buy shares is that the platform does not charge any share dealing fees. Instead, you can buy and sell as many shares are you wish without paying any commissions. The main fee that you need to take into account is the spread, and spreads are very competitive at eToro.

    eToro is also popular for its social and copy trading tools. As a social trading platform, it allows you to engage with other users, while the CopyTrader tool allows you to copy the entire portfolios of top investors! This means you can invest in shares in a passive way.

    Safety and security is also highly rated at eToro, as the broker holds licenses with the UK's FCA, as well as regulators in Australia and Cyprus. You will need to meet a minimum deposit of $200 at the broker, which amounts to about £160, and you can choose from a variety of payment methods, including PayPal.

    Our Rating

    • Social and copy trading tools
    • 0% commission on shares and ETFs
    • Over 800 shares to buy or trade as CFDs
    • FCA regulated
    • MT4/5 not available
    75% of retail investor accounts lose money when trading CFDs with this provider.

    2. Plus500 – Low Cost CFD Broker with Tesla Shares

    If you're looking to trade Tesla shares as opposed to making a traditional investment, it might be worth considering Plus500. In a nutshell, the platform gives you access to thousands of CFD products - including that of shares. In fact, you can place buy and sell positions on over 2,000 equity CFDs, such as Tesla. In doing so, you will benefit from commission-free trades, so it's only the spread you need to factor into your costs, and these are very competitive at Plus500.

    In terms of getting started, it takes just minutes to register at Plus500. After entering some personal information and uploading ID, you can deposit funds with a UK debit/credit card, bank account, or e-wallet such as PayPal. The broker requires a minimum deposit of £100, and there are no transaction fees to take into account. This is also the case when you withdraw funds out, which is great.

    One of the best things about Plus500 is that it offers an excellent mobile trading app. This allows you to access Plus500's user-friendly proprietary platform on your smartphone or Android, and you can also benefit from handy features like share price alerts and basic charting tools.

    Our Rating

    • Fast order execution
    • No commissions
    • Tight spreads
    • Shares only available via CFDs
    80.5%% of retail investor accounts lose money when trading CFDs

    3. FinmaxFX – Best MT5 Platform to Trade Tesla Shares CFDs

    FinmaxFX is another CFD provider that offers heaps of financial instruments. At the forefront of this is its comprehensive shares CFD library, which covers some of the largest firms listed on the New York Stock Exchange and NASDAQ. As a result, you can trade Tesla shares in the form of the CFDs with ease. The main difference between FinmaxFX and Plus500 is that you will get even higher leverage limits.

    While the latter is capped by the regulations imposed by ESMA, FinMaxFX isn't at the platform is based offshore. As such, you can trade Tesla CFDs with leverage of up to 1:20. This means that a £50 account balance would allow you to trade with up to £1,000. FinMaxFX is also a notable option if you are looking for a more sophisticated trading platform, as you will have full access to popular platform MetaTrader 5 (MT5).

    For those unaware, this is a third-party trading platform that comes packed with lots of technical indicators, as well as and chart reading and drawing tools. You can also customize your trading screen to mirror your personal requirements, and even install automated trading robots. One thing to consider before using FinmaxFX is that this broker charges higher spreads than other platforms, and a withdrawal fee of up to 3%.

    Our Rating

    • Advanced trading tools: Supports MT5
    • Trade stock CFDs with 10:1 leverage
    • Education: Weekly live webinar
    • Spreads start from 3 pips
    There is no guarantee you will make money with this provider.

    4. Capital.com – AI-Powered Share Trading Platform

    Capital.com is an online trading platform that was first launched in 2016. Although this makes the platform relatively new in the online brokerage space, it has since attracted a strong following. One of the main reasons for this is that Capital.com offers an AI-powered trading platform that comes jam-packed with ongoing market insights.

    The platform is also popular as it allows you to trade stock CFDs on a 0% commission basis, and there are no hidden fees. Orders are executed quickly, and spreads are competitive when trading major share CFDs like Tesla.

    Most importantly, Capital.com is regulated by the FCA and CySEc, so you will benefit from high privacy and cutting-edge security features. Capital.com is also useful if you are just starting out in the world of share CFD trading, as the platform offers a range of online courses, guides, and even an educational app.

    Our Rating

    • Live market data and fast execution speeds
    • AI-powered proprietary trading platform
    • Mobile trading app
    • Capital.com accounts can’t be hosted on the conventional MT4/MT5 trading platforms
    There is no guarantee you will make money with this provider.

    5. FXCM - Leading CFD Broker With Transparent Fees

    FXCM is a reputable online trading platform with over two decades of experience. The platform deals exclusively in share CFDs, so you will have the opportunity to trade Tesla as opposed to owning the underlying instrument. You will be able to trade Tesla shares with leverage of up to 1:5, and even more if you are classed as a professional trader.

    The broker does not charge any trading commissions when you enter buy and sell positions on share CFDs, and spreads are typically competitive during standard market hours. The platform also offers plenty of educational materials and some useful research resources.

    You can easily deposit funds into FXCM, with full support for debit/credit cards, e-wallets, and bank transfers. This broker is regulated by several licensing bodies, so you can be sure that your funds and personal details are kept safe when you trade with FXCM.

    Our Rating

    • Highly competitive spreads and 0% commission
    • FSCS protections from UK traders
    • Thousands of stock CFDs to trade
    • No traditional ownership of shares
    There is no guarantee you will make money with this provider.

    Why Buy Tesla Shares?

    Much like the rest of the US (and global) stock markets, Tesla shares took a rapid hit in March 2020 due to the COV-19 pandemic. However, not only has the firm recovered all of its pre-Coronavirus losses, but it is now in all-time high territory. In Layman’s terms, this means that Tesla shares are the highest they have ever been.

    Crucially, not only are its electric cars back on the production line, but its first-quarter 2020 results were significantly better than the markets had anticipated. With that said, Tesla shares won’t be for everyone – so below we have listed some of the reasons that analysts are bullish on the shares.

    Model 3 has Been Well-Received

    As per well-regarded car analysis platform Edmunds, the Tesla Model 3 was named the best electric car of 2019. On a wider scale, the general market consensus of Model 3 has been extremely positive. In fact, Tesla’s earliest success in the electric car space inspired several other car companies to develop their own models.

    The car highlights Tesla’s mission “to accelerate the world’s transition into sustainable energy.” As such, Model 3’s success is appealing for both auto enthusiasts and those who appreciate Tesla for its dedication in bringing renewable energy to the consumer marketplace.

    Tesla Shares are Soaring

    On June 10 2020, Tesla saw its shares once again hit new all-time heights. In doing so, the Tesla share price surpassed the all-important $1,000-mark. This translated into growth of over 6% in just a single day of trading.

    On the same day came an announcement from Elon Musk that the firm is now setting its sights on the production of Tesla Semi.

    Stock market analysts point to several reasons for Tesla’s rapid growth on the NASDAQ.

    This includes increased demand in China, the reopening of US and European economies, and the firm’s innovative renewable battery project that could be “game-changing”.

    Tesla has a Powerful Mission to Follow

    The Secret Tesla Motors Master Plan, which was published in 2006 by CEO Elon Musk, gives out the firm’s long-term vision and goals with respect to ‘auto space’. Fast forward to 2016, and Musk took things to the next level by announcing his agenda to develop models that are both sustainable as well as futuristic.

    Some financial commentators believe that if Tesla is able to realize these goals, then at current prices, Tesla is still potentially under-valued.

    Tesla is Only Getting Started

    Investors are keeping an eye out for growth shares, and Tesla fits well within this category. Crucially, the company is just getting a foot into the global automobile market. Growth in recent times has been staggering nonetheless. For example, the firm saw vehicle deliveries increase 138 % year-over-year in comparison to 2018.

    Considering that Tesla has only scratched the surface of the global automobile space, the company has a significant amount of market share to target.

    Tesla Does not Rely on Traditional (Costly) Advertising Channels

    Tesla cars are both innovative and futuristic, and with the right programming, full self-driving capabilities is the next step for the firm. Tesla’s annual report notes that media coverage and word of mouth are the primary drivers of its sales leads.

    Most importantly, it has been able to achieve sales the vast bulk of its revenues without depending on traditional advertising. Faster production of automobiles, better profitability, and access to China promises to be a winning union for Tesla and its investors.

    Interested in investing in other companies? Check out our guides on how to buy Disney shares, Netflix shares and Tesco shares.

    About Tesla Shares

    Company and Tesla Share Price History

    Tesla was founded in 2003 with a mission to create electric vehicles that come with greater efficiency levels and are faster to drive. The company specializes in the design, development, production, and sales of electric cars. It also has an energy generation and storage segment that focuses on developing static energy storage solutions.

    Tesla went public in 2010, with each of its 13.3 million shares valued at $17. Today, the shares trades in the range of $800 to $900 per share. Those who purchased Tesla during its IPO would now be staring at a staggering ROI (Return on Investment) of 4,800% at today’s prices.

    Tesla has a current market capitalization of approximately $150 billion. In April 2017, when its share prices increased to over $290, Tesla overtook Ford, an automobile company that has been active since 1903. Although Tesla has performed tremendously well for those that backed the company at the start of its public journey, the shares have had their fair share of volatility.

    For example, Tesla shares entered 2018 at a share price of $330, reaching lows of $190 just five months later. This translated into a share price decline of 42. Nevertheless, the first quarter of 2020 saw a 40% increase in deliveries, and 32% in operating profits in comparison to the prior year. With an earnings per share of $1.24 at the time of writing, Tesla has exceeded market expectations by some distance.

    How to Buy Tesla Shares on eToro

    Like the sound of Tesla and wish to buy some shares right now? If so, we are now going to show you the process with our recommended broker, eToro. The platform is regulated by the FCA, offers social and copy trading tools, and allows you to buy Tesla shares or trade CFDs.

    If you choose to buy Tesla shares on another investment platform, the process remains largely similar.

    Note: Before you get to step 1, you will need to quickly go through the process of registering and depositing funds. End-to-end, it should take you no longer than 10 minutes.   

    Step 1: Search for Tesla (TSLA) Shares

    At the top of the screen, you will see a search box. Enter ‘Tesla’ and click on the corresponding result.

    Search Tesla shares eToro

    Step 2: Click on ‘Trade’

    Next, click on the ‘Trade’ button.

    Trade Tesla shares eToro

    Step 3: Set-Up Order and Buy Tesla Shares

    As is the case with all online share dealing sites, you will now need to let eToro know how you wish to have your order executed. While you have the option of limit orders, stop-loss orders, and take-profit orders. If you simply want to buy and hold onto Tesla shares for a number of years, it’s best to leave the order box as it is.

    Buy Tesla shares on eToro

    As such, all you need to do is enter the amount that you want to invest in Tesla (in US dollars), and click on the ‘Open Trade’ button. Once you do, eToro will execute your order within seconds, and you will have your hands on some Tesla shares!

    Should I Buy Tesla Shares?

    While Tesla has had its fair share of market volatility, the general consensus on Wall Street is that this share is here to stay. Crucially, had you jumped on the bandwagon 12 months ago, you would now be looking at year-on-year gains of over 400%.

    Even then, you might not have missed the boat, with several commentators arguing that Tesla shares are still undervalued. For example, with a Composite Rating of 98 out of 99, Tesla is outperforming close-to 98% of other shares on the S&P 500. Ultimately, with production being streamlined and new manufacturing units in the pipeline, revenues are expected to continue growing northwards.

    If you do want to buy Tesla shares right now, we recommend registering with our recommended stockbroker, eToro. With no commission, copy trading tools, and the ability to buy shares or trade CFDs, eToro is a great choice. Simply click the link below to get started today!

    eToro: Buy Shares with 0% Commission

    Our Rating

    • Buy over 800 global shares
    • No commission and tight spreads
    • Social and copy trading tools
    • Accepts PayPal
    • FCA regulated
    75% of retail investor accounts lose money when trading CFDs with this provider.

    FAQs

    Is there a Tesla share price prediction?

    The general consensus on Tesla is ultra-positive. Although the company has a PE (price-to-earnings) ratio of well over 240 (just under 10 times higher than the industry average), many argue that its shares are still undervalued.

    What are the fees when buying Tesla shares?

    This can vary wildly. If using eToro, you can buy Tesla shares without paying any fees at all. Other brokers, such as Hargreaves Lansdown, charge up to £11.95 per trade.

    Does Tesla pay dividends?

    No, Tesla is yet to pay a single cent in dividends, and this will likely be the case for many years to come. Don't forget, Tesla is still in the early stages of its long-term journey, so operating revenues are subsequently reinvested into the firm's growth.

    What is the minimum amount I can invest in Tesla shares?

    This depends on whether or not you are using a broker that supports fractional ownership. If it doesn't, a whole share is going to cost over $1,000 at current prices. At the other end of the spectrum, brokers like eToro allow you to invest just $50 (about £40).

    What stock exchange is Tesla listed on?

    Tesla shares are listed on the NASDAQ Exchange.

    What is the all-time high for Tesla shares?

    Tesla shares are trading at all-time highs at the time of writing this article in June 2020. This stands at just over $1,000 per share.

    Is Tesla making a profit?

    'Although revenues are increasing at an exponential rate, Tesla is yet to make a profit. On the contrary, the firm is still losing money.

    Can I short Tesla shares?

    If you think that Tesla shares are overvalued, you can short sell the company via share CFDs.

    When was Tesla founded?

    Tesla was founded in 2003.

    A-Z of Shares

    ABCDEFGHIJKLMNOPQRSTUVWXYZ#
    All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
    Kane Pepi

    Kane holds academic qualifications in the finance and financial investigation fields. With a passion for all-things finance, he currently writes for a number of online publications.

    X

    eToro: Buy Shares with 0% Commission

    eToro: Buy Shares with 0% Commission

    eToro: Buy Shares with 0% Commission

    Visit eToro

    Your capital is at risk.

    eToro: Buy Shares with 0% Commission
    Visit eToro

    Your capital is at risk.