Table Of Content
How to Buy Tesla Stock
Buying Tesla stock is a fairly simple process thanks to the widespread availability of online brokerages. Here's how to get started, whether you're a beginner or a more experienced investor:
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1. Choose a Brokerage Platform
Start by selecting a brokerage that gives you access to Nasdaq-listed stocks — Tesla trades under the ticker TSLA.
Most U.S. platforms like Fidelity, J.P Morgan self-investing, Robinhood, and Interactive Brokers allow you to trade Tesla shares with zero commission fees.
In addition to trading access, look for a platform that offers real-time market data, research tools, and price alerts.
Broker | Annual Fees | Best For |
|---|---|---|
Robinhood | $0 – $6.99
$0 for basic account, $6.99 for Robinhood Gold | Beginner Stock & Crypto Traders |
SoFi Invest | $0 | Automated Investing & Beginners |
eToro | $0 | Copy & Social Trading |
Wealthfront | 0.25% | Hands-Off Investors |
Webull | $0 | Active Day Traders |
Cash App Invest | $0 | Easy Stocks & Bitcoin Purchases |
Ally Invest | $0 | Mobile-Friendly Investing |
For example, Robinhood lets you set a price notification so you’re alerted when TSLA hits your preferred buy range — a helpful feature if you’re waiting for a price dip.
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2. Open and Fund Your Account
Once you’ve picked a platform, you’ll need to open an account.
This usually involves submitting your ID, linking a bank account, and answering a few investment experience questions. After the account is approved, you can deposit funds.
Let’s say Tesla is currently trading at $175 per share. If you want to invest $500, you can purchase fractional shares — around 2.85 shares in this case — which is especially useful for investors without large amounts of capital.
- The Smart Investor Tip
Transfer a bit more than you plan to invest to cover future opportunities or potential fees.
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3. Research Tesla Before You Buy
Before hitting “buy,” it’s smart to understand what drives Tesla’s stock price. Tesla is more than just an automaker — it's also a major player in battery technology, AI, and energy storage.
Here are a few areas worth researching:
Revenue trends from core products (Model Y, Cybertruck, energy storage systems)
Elon Musk’s strategy and leadership — which often moves the stock price
Tesla’s profit margins, deliveries, and earnings per share (EPS)
Analyst forecasts and potential competition from automakers like Ford and BYD
Sites like investing.com and Zacks offer regularly updated financials and expert insights to help you evaluate Tesla’s long-term outlook.
- The Smart Investor Tip
Look beyond Tesla’s cars — review developments in AI, robotics, and energy storage.
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4. Place a Buy Order
After researching, log into your brokerage and search for TSLA. You’ll have the option to choose the type of order you want:
Market Order – Executes instantly at the current market price
Limit Order – Executes only if TSLA drops to a price you set
Recurring Investment – Automatically invests a set amount on a schedule (great for dollar-cost averaging)
For instance, if Tesla is at $180 and you want to buy only if it falls to $170, a limit order would be ideal.
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5. Track and Manage Your Investment
After purchasing, it’s important to keep an eye on how Tesla performs — not just in stock price, but in broader company developments. Tesla is known for its volatility, so staying informed is key.
Your broker may offer features like:
Real-time news feeds (e.g., updates on earnings calls or new vehicle rollouts)
Portfolio performance tools
Analyst ratings and technical charting
If you’re a long-term investor, set up alerts for key events like earnings releases or delivery reports, which often affect stock performance significantly.
How to Invest in Tesla Indirectly
If buying Tesla stock directly doesn’t match your strategy — whether due to volatility concerns or the desire to diversify — there are several smart ways to gain indirect exposure to Tesla’s growth and innovation.
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Invest in ETFs That Hold Tesla
One of the easiest ways to indirectly invest in Tesla is through exchange-traded funds (ETFs) that include TSLA among their top holdings. Many technology, innovation, and growth-focused ETFs heavily weight Tesla.
For example:
ARK Innovation ETF (ARKK), managed by Cathie Wood, is known for its large Tesla allocation due to its focus on disruptive tech.
Invesco QQQ (QQQ) includes Tesla as part of its Nasdaq-100 tracking portfolio.
SPDR S&P 500 ETF (SPY) also holds Tesla because it’s a major component of the S&P 500.
By purchasing shares of these ETFs, you benefit from Tesla’s upside while spreading risk across other companies.
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Invest in Companies That Rely on Tesla’s Ecosystem
Another indirect strategy is to invest in businesses that support or benefit from Tesla’s expansion.
Tesla’s success isn’t just about car sales — it also creates ripple effects across batteries, chips, and charging infrastructure.
For example:
Panasonic is one of Tesla’s key battery suppliers.
Albemarle produces lithium, which is crucial for Tesla’s electric vehicle (EV) batteries.
ChargePoint Holdings develops EV charging stations used by Tesla drivers.
If you believe in the future of electric vehicles and energy storage, these related companies allow you to ride the broader trend without owning Tesla shares directly.
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Use Mutual Funds or Robo-Advisors with Tesla Exposure
If you're more of a hands-off investor, mutual funds and robo-advisors can provide built-in exposure to Tesla. Many large-cap growth or technology-focused mutual funds include TSLA in their portfolios.
For instance:
Fidelity Growth Company Fund (FDGRX) has historically held Tesla due to its focus on high-growth stocks.
Robo-advisors like Betterment and Wealthfront often include ETFs that hold Tesla as part of tech-focused or aggressive-growth portfolios based on your goals and risk tolerance.
Rovo Advisor | Annual Fees | Minimum Deposit |
|---|---|---|
Wealthfront | 0.25% | $500 |
Betterment | 0.25%
$4 monthly for $0 – $20K balance, 0.25% annually for $20K – $1M balance, 0.15% annually for $1M – $2M balance, 0.10% annually for +$2M balance | $10 |
Acorns | Monthly: $3 – $12
$3 for Bronze, $6 for Silver and $12 for Gold
| $0 |
Schwab Intelligent Portfolios | Up to 0.80%
$0 online commission on U.S. listed stocks, mutual funds and ETFs, options: $0.65 per-contract, Schwab Intelligent Portfolio – 0%, Schwab Intelligent Portfolios Premium – One-time planning fee: $300 + Monthly advisory fee: $30, Schwab Wealth Advisory: up to 0.80% | $5,000 |
Vanguard Digital Advisor® | Up to 0.30%
$0 online commission on U.S. listed stocks, mutual funds and ETFs, options: $0.65 per-contract, Vanguard Digital Advisor – 0.015%, Vanguard Personal Advisor: 0.03%, Vanguard Personal Advisor Select: up to 0.03%, Vanguard Wealth Management: up to 0.03% | $100 |
E*TRADE Core Portfolios | 0% – 0.35%
0% on stocks and ETFs in self directed brokrage, 0.35% for Core Portfolio Robo Advisor
| $500 |
Merrill Guided Investing | 0.45% – 0.85%
0.45% for Merrill Robo Advisor (Guided Investing), 0.85% for Investing With An Advisor | $1,000 |
This strategy works well if you're looking for long-term exposure to innovative companies, but prefer professional or automated portfolio management.
Buying Tesla Stock: Pros & Cons
Tesla is one of the most talked-about stocks on the market, but investing in it comes with both rewards and risks.
Pros | Cons |
|---|---|
Global leader in EV market | Highly volatile stock |
Rapid revenue growth | Valuation may be stretched |
Expanding product ecosystem | Growing competition in EVs |
Cutting-edge innovation | Heavy reliance on Elon Musk |
- Strong Brand and Innovation
Tesla is a global leader in electric vehicles and energy technology, with strong brand recognition and a loyal customer base.
- High Revenue Growth
Tesla’s revenue has consistently increased year over year, driven by growing EV demand, international expansion, and new product lines.
- Diverse Business Segments
Beyond vehicles, Tesla generates income from solar products, energy storage, and software features like Full Self-Driving.
- Market Leadership in EV
Tesla remains a dominant force in the EV space, often outpacing competitors in innovation, delivery speed, and battery tech.
- High Volatility
Tesla's stock is known for sharp price swings, often reacting to tweets, earnings reports, or market sentiment shifts.
- Valuation Concerns
Even with strong growth, many analysts argue Tesla is overvalued compared to traditional automakers based on price-to-earnings ratios.
- Competition Is Rising
Legacy automakers like Ford and new entrants like BYD are aggressively expanding into the EV space, increasing pressure on Tesla.
- Dependence on Elon Musk
Tesla’s performance is closely tied to Elon Musk, whose actions and focus on other ventures can impact investor confidence.
FAQ
Yes, most traditional and Roth IRAs allow you to invest in Tesla stock through a brokerage. It’s a popular choice for growth-focused retirement investors.
You can invest with as little as $1 if your broker offers fractional shares. This makes Tesla accessible even for small investors.
Tesla can be part of a beginner’s portfolio, but its price volatility may not suit every risk tolerance. Diversification is key when including it.
Apps like Robinhood, Webull, and SoFi allow you to search for TSLA and place trades directly from your phone. Most support fractional shares as well.
Yes, many platforms let you automate investments in Tesla with recurring buys, making it easy to dollar-cost average over time.
You'll pay capital gains tax when you sell for a profit. The rate depends on how long you held the stock and your income bracket.
Buying during regular trading hours (9:30 AM – 4 PM EST) provides more liquidity. After-hours trading carries more price risk and less volume.
Yes, many brokers offer gifting options. You can transfer Tesla stock to another person’s brokerage account, often with minimal fees.
If Tesla splits its stock, your share count increases while the price per share drops proportionally. Your total investment value remains the same.
You can monitor it via your brokerage dashboard or apps like Yahoo Finance, which offer price charts, news, and analyst ratings.
