How to Buy Tesla Shares in the UK

Authored by:
Thomas Drury
Thomas Drury

Thomas Drury

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Seasoned finance professional with 10+ years' experience. Chartered status holder. Proficient in CFDs, ISAs, and crypto investing. Passionate about helping others achieve financial goals.

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Dom Farnell
Dom Farnell

Dom Farnell

Co-Founder

Dom is a Co-Founder and of TIC. A passionate investor and seasoned blog writer with a keen interest in financial markets and wealth management.My goal is to empower individuals to make informed investment decisions through informative and engaging content.

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Last Updated 09/01/2024
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Please bear in mind that the value of investments can decrease in addition to increasing, which means there is a possibility of receiving an amount lower than your initial investment. It is generally advisable to retain your investments for a minimum of five years in order to maximize the likelihood of achieving your desired returns. Capital at risk.

showcasing the process of buying Tesla shares in the UK, featuring a digital trading platform interface with Tesla's stock symbol and British elements to tie the investment process to the UK. The design aims to convey accessibility and the appeal of investing in Tesla to UK-based investors.

Quick Answer: How to buy Tesla shares in the UK: Step-by-Step guide:

  1. Research Platforms: Begin by researching suitable trading platforms that cater to UK investors and offer international trading capabilities.

  2. Open a Brokerage Account: Set up a brokerage account. Most brokerage accounts provide a straightforward sign-up process. Ensure you choose one with favourable terms, especially regarding foreign exchange fees.

  3. Deposit Funds: After setting up, account and deposit funds. If planning to invest significant amounts, consider a US dollar account to mitigate foreign exchange risk.

  4. Search for Tesla: Use the ticker symbol ‘TSLA’ on the platform to locate Tesla shares.

  5. Analyse: Before purchasing, assess the tesla share price, its price to earnings ratio (P/E ratio), and other research tools available to gauge its current valuation.

  6. Buy Tesla Shares: Decide the number of shares you wish to buy and execute the purchase. For those new to the stock market, you can opt for a lump sum purchase or practice pound cost averaging to mitigate risk.

  7. Monitor & Manage: Regularly check the performance of your Tesla investment. Keep an eye on news related to Tesla’s chief executive officer, market trends, and other influential factors.

  8. Sell or Hold: Depending on your investment thesis and the share price, decide whether to hold, sell, or even buy more shares. If you decide to sell, understand the implications of capital gains tax and possibly withholding tax for UK investors.

  9. Diversify: Always consider diversifying your investment portfolio. Don’t put all your eggs in one basket, even if it’s a Tesla-shaped one!

This quick guide provides a concise overview for those looking to buy Tesla shares UK. However, always seek financial advice before making significant investment decisions.

Tesla Shares Brokerage Comparison Chart

Trading 212
Lightyear
Interactive Investor
Etoro Logo
Etoro
IG
Regulator
FCA
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FCA
FCA
FCA
Mobile App Usability
4.5/5
4.6/5
4/5
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Variety of Assets
12,000+ global stocks & ETFs, commodities, forex
Stocks 3000+, ETF's 1000+
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ISA Available
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No
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Yes (in conjunction with Moneyfarm)
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Trust Pilot Score
4.6/5
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4/5
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Overall Review Score
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What is Tesla?

Tesla, Inc., more than just an electric cars manufacturer, is a multinational conglomerate that’s revolutionizing the electric vehicle market.

Founded by Elon Musk, Tesla has expanded its footprint into energy generation, battery storage, and even space exploration.

Its commitment to sustainability and innovative technologies has positioned it as a leader not just in electric vehicles, but in the broader realm of renewable solutions.

How to buy shares in Tesla

While the process of buying shares might seem complicated, acquiring Tesla stocks is relatively straightforward. Start by opening a brokerage account on platforms like Trading 212, IG, or II. After depositing funds, use the ticker symbol ‘TSLA’ to find Tesla.

Analyse the current share prices and other metrics before deciding on the number of shares to purchase. Always keep in mind the potential foreign exchange fees and risks involved.

Alternative ways to invest in Tesla

Apart from direct stock acquisition, there are other avenues to get a piece of the Tesla pie:

  • Exchange Traded Fund (ETFs): These funds may include Tesla as part of their diversified holdings.

  • Mutual Funds: Similar to ETFs but typically managed more actively.

  • Trading Spread Bets and CFDs: These are more complex financial instruments that allow for speculation on Tesla share price movements without owning the actual stock such as shorting Tesla Stock.

Invest in Tesla via a fund

For those not keen on buying individual stocks, investing in a fund that includes Tesla can be a prudent choice. Such funds pool resources from many retail investor accounts to invest in a range of asset classes, including prominent companies like Tesla.

It offers a way to benefit from Tesla’s growth while enjoying the diversification a mutual fund also brings.

Is it a Good Time to Buy Tesla Stock?

Deciding the right time to invest is subjective and depends on various factors like the current share price, global economic conditions, Tesla’s past performance, and future projections.

While Tesla shares have seen volatility, its innovative approach and dominant market position make it an intriguing option for many.

It’s advisable to analyse the current investment thesis, use available research tools, and, if needed, seek financial advice before making a decision.

Tesla share price (NASDAQ:TSLA) Stock Market

Keeping track of Tesla’s share price is essential for both potential investors and current shareholders. Being listed on the NASDAQ with the ticker symbol TSLA, Tesla’s stock price can be an indicator of its current valuation, growth potential, and the market’s perception of the company’s future.

For real-time updates, most trading platforms like Trading 212, IG, and II provide real-time share prices. Additionally, financial news websites, the company’s investor relations page, and stock market apps offer regular updates and analyses.

Person in a group call at their computer

Remember, while the share price gives you an immediate snapshot, it’s essential to look beyond the numbers. Consider factors like Tesla’s expansion into new markets, its foray into energy generation, or even its profitability metrics like profit margins.

Moreover, considering the foreign exchange implications is vital for UK investors. The share price on NASDAQ is in USD, so any fluctuations in the GBP to USD rate can impact your returns.

Always be mindful of the foreign exchange fee that trading platforms might charge when you decide to buy or sell.

Before making any investment decisions, it’s crucial to understand that past performance, such as Tesla’s price performance over time, does not guarantee future results.

Always diversify your investments and consider seeking advice from financial professionals.

Why is Tesla so volatile?

Tesla’s presence in the stock market is nothing short of remarkable. Since its inception, the company’s share price has seen notable highs and lows, making Tesla shares synonymous with volatility. But what drives this unpredictability? Here are some reasons:

  1. Innovative Market Position: As a pioneer in the electric vehicle market, Tesla’s ventures into uncharted territories like self-driving technology and energy generation mean its stocks react strongly to any related news or developments.

  2. Public Perception and Media Coverage: Tesla, and especially its CEO, attract a lot of media attention. Any announcements, tweets, or remarks can lead to significant fluctuations in the share price.

  3. Financial Metrics and Profitability: While Tesla has reported increasing sales of its electric vehicles, concerns about profit margins, production capabilities, and competition can lead to investor apprehension.

  4. Regulatory Scrutiny: Being in the forefront of the electric and autonomous driving movement, Tesla often finds itself under the microscope of regulators, impacting its share prices.

  5. Global Economic Factors: External elements, such as trade wars, global pandemics, or shifts in foreign exchange rates, can influence Tesla stocks just as they do with other publicly traded companies.

  6. Investor Sentiment: A blend of retail and institutional investors holds Tesla shares. Rapid buy or sell-offs, often driven by speculative trading or reactions to short-term news, can lead to spikes in volatility.

  7. Short Selling: Tesla has been one of the most shorted stocks in the past. When short sellers decide to cover their positions en masse, it can lead to dramatic movements in the share price.

  8. Supply and Demand Dynamics: At times, the sheer demand for Tesla shares, especially during positive news cycles, surpasses the available supply, leading to rapid price surges. Conversely, negative news can result in quick sell-offs.

For UK investors looking to buy Tesla shares UK, understanding this volatility is crucial. It’s not just about the share price today but understanding the factors that might influence it tomorrow.

As always, investing in individual stocks, especially volatile ones, should be approached with caution.

Diversifying investments, using research tools, and staying updated on both company-specific and global news can help navigate the unpredictable waters of Tesla’s stock.

Bull and bear pulling away from each other with green and red arrows

What's Tesla's price performance over time?

Tesla’s journey in the stock market has been both meteoric and tumultuous. Since its initial public offering (IPO) in 2010, the share price of Tesla has experienced significant peaks and troughs, reflecting its growth trajectory and the challenges it’s faced.

Over the decade, several factors have influenced Tesla’s share price:

  1. Product Launches: Announcements of new electric vehicles or upgrades to existing models have traditionally seen a boost in share prices.

  2. Financial Milestones: Periods where Tesla reported profits or exceeded delivery expectations often led to positive stock reactions.

  3. Expansion Endeavours: Tesla’s growth into global markets, opening of new Gigafactories, and ventures into energy generation and storage have been crucial points of interest for investors.

  4. Competitive Landscape: As other automobile giants entered the electric vehicle market, Tesla’s stock reacted to the changing competitive dynamics.

While the past performance offers insights, it’s essential to understand that it doesn’t guarantee future outcomes. It serves as a framework for potential investors to gauge the company’s resilience, adaptability, and growth prospects.

How did Tesla perform in 2022?

2022 was another noteworthy year for Tesla. With increasing sales figures, expanding global presence, and advancements in energy generation, Tesla continued to solidify its position as a market leader. While there were challenges – supply chain disruptions, global economic uncertainties, and regulatory hurdles – Tesla showcased resilience.

A highlight was the continued expansion into international markets, reducing the foreign exchange risk for the company. Tesla shares reacted positively to the announcement of new manufacturing facilities and the successful launch of new car models.

However, it’s essential to compare these developments against the broader stock market performance in 2022 to get a holistic understanding of Tesla’s relative performance.

Is Tesla under- or over-valued?

Valuing a company like Tesla, which operates at the intersection of automobile manufacturing and cutting-edge technology, is complex. Traditional metrics like the price to earnings ratio (P/E ratio) can provide some insights.

Analysts often diverge in their opinions due to:

  1. Growth Potential: Tesla’s ventures into energy generation, battery technology, and the broader electric vehicle market promise significant future revenues.

  2. Risk Factors: Production challenges, competitive pressures, and regulatory concerns can impact profitability.

  3. Investor Sentiment: The belief in Tesla’s vision and its potential to revolutionize transportation and energy can lead to higher valuations.

  4. External Factors: Global economic conditions, foreign exchange fluctuations, and capital gains tax implications can also influence perceptions of value.

For UK investors, before deciding to buy Tesla shares UK or anywhere else, it’s crucial to do comprehensive research, use available research tools, and potentially seek financial advice. While Tesla’s growth story is compelling, understanding its valuation in the context of both its potential and risks is essential.

A Final Glance at Tesla Investment for the UK Investor

In evaluating any one investment thesis or opportunity, considering the past performance is paramount. While historical trends don’t guarantee future results, they provide context. For a company as dynamic as Tesla, understanding its average share price trajectory can be informative.

For those curious about the mechanics, how spread bets work in relation to shares might be an avenue worth exploring. It’s a different approach to the stock market, offering both opportunities and unique challenges.

Lastly, while our guide has touched upon various trading platforms, it’s worth noting that most brokerage accounts provide access to a plethora of research tools and information. Whether you opt for traditional brokerage accounts or more specialized ones, ensure it aligns with your investment goals and strategies.

Thank you for journeying with us through this guide. As with any investment, due diligence, research, and a touch of intuition will serve you well.

FAQs

Navigating the intricacies of the stock market and understanding how to invest in popular companies like Tesla can be daunting. Here are some commonly asked questions to provide clarity for UK investors and those considering the journey of purchasing Tesla shares:

 

Answer: While Tesla is listed on the NASDAQ, UK investors can purchase its shares through international trading platforms or brokers that have access to the US stock market. It’s essential to select a trading platform or broker that offers competitive foreign exchange fees and has a straightforward process to convert GBP to USD.

Answer: If you make a profit from selling your Tesla shares, you may be subject to capital gains tax in the UK. The amount depends on your total taxable income and the gain amount. Always consult with a tax professional or use online research tools to understand your obligations.

Answer: Yes, there are alternative ways to invest in Tesla without purchasing individual shares. Options include exchange traded funds (ETFs) that have Tesla as a significant holding or mutual funds focused on the electric vehicle market.

Answer: Opening a brokerage or trading account is a straightforward process with most platforms.

Choose a reputable trading platform that caters to UK investors, complete the registration process, ensure it offers international trading options, and then account and deposit funds. Always check for any foreign exchange fees or other charges.

Answer: As of now, Tesla does not offer dividends. Instead, the company typically reinvests its profits back into its business, focusing on growth, energy generation, and new electric vehicle models.

Answer: As with any investment, there are risks. UK investors should be aware of foreign exchange risk, the volatile nature of Tesla shares, and the broader global economic landscape. Always diversify your investment portfolio and consider the long-term outlook.

Answer: Many trading platforms offer research tools and insights. Additionally, financial news websites, analysts’ reports, and the company’s investor relations page are valuable resources.

Answer: Yes, most trading platforms charge a foreign exchange fee when converting GBP to USD. Always compare platforms to find the most competitive rates and consider opening a US dollar account to potentially reduce these fees.

This FAQ section aims to provide a starting point for potential investors. However, it’s always essential to do comprehensive research, stay updated, and consider seeking expert advice before making any investment decisions.

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Epilogue

Who Created This Content: This guide was authored by Thomas Drury is an experienced financial trader in leverage intruments, crypto and general investing.

He has over a decade experience in finance and holds Chartered Status in the financial industry, Thomas’s specialty is trading CFDs, Forex and Day Trading.

His crypto portfolio is heavily weighted towards BTC and Eth, but enjoys trading low cap crypto’s with higher volatility. Thomas’s favourite trading strategy is break out Trading.

ow This Content Was Created: Our assessment of the best place on how to buy TESLA is rooted in rigorous research and firsthand experience. Here’s our methodology:

  • Platform Testing: We actively tested multiple platforms over a span of six months, analysing their functionalities, ease of use, and reliability.

  • Fee Analysis: Each platform’s fee structure was dissected to ascertain its competitiveness in the market.

  • User Feedback: We engaged with real users and considered their reviews and experiences, lending a holistic perspective to our evaluation.

  • Market Dynamics: Regular updates from industry news, changing regulations, and market dynamics ensure the guide remains current and reliable.

  • AI-Assistance: While human judgment and expertise are at the core of our assessments, we utilized AI tools to improve structure, critique our work.

Note: Our use of AI tools is strictly for data gathering and content assistance. All conclusions drawn and recommendations made are based on human analysis and judgment.

Why This Content Was Created: Our primary objective in creating this guide is to empower traders, both seasoned and novices, with impartial, comprehensive, and actionable information to make informed decisions.

We understand the complexity of the stock trading world and aim to simplify it for our readers.

While we hope our content is discoverable by those seeking insights, our main priority is to provide genuine value to our visitors.

We staunchly oppose content creation practices that manipulate search rankings or violate any standards of integrity.

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