Best Way to Buy Tesla Shares in the UK
Updated March 8, 2024
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76% of retail investor accounts lose money when trading CFDs with eToro. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take two mins to learn more.
- A list of the Top Trading Brokers for April 2024:
- Description of the Best Trading Brokers for April 2024
- What Is Tesla?
- Can You Buy Tesla Shares in the UK?
- How to Buy Tesla Stock UK
- Best Way to Buy Tesla Shares UK
- What Are the Risks of Investing?
- Cheapest Way to Buy Tesla Stock
- Frequently Asked Questions
- Final Thoughts
A list of the Top Trading Brokers for April 2024:
Description of the Best Trading Brokers for April 2024
1. Avatrade
AvaTrade is a multinational broker established in 2006 and is an excellent option for those looking to buy Tesla stocks in the UK, especially beginners, for several compelling reasons.
Furthermore, AvaTrade offers various educational resources to enhance trading knowledge and strategies for UK-based investors interested in Tesla stocks.
AvaTrade's provision of a demo account is especially beneficial for beginners looking to invest in Tesla stocks.
Regarding risk management, AvaTrade offers various tools, including stop-loss orders, which are invaluable for those venturing into the world of stock trading, mainly with volatile assets like Tesla.
In addition, AvaTrade is regulated by CBI, FSA, B.V.I FSC, ASIC, FSCA, FSA/FFAJ and FRSA, providing investors with a sense of security when buying Tesla stocks through their platform.
However, it's crucial for beginners to understand the inherent risks involved in stock trading and to invest only what they can afford to lose.
While AvaTrade offers a beginner-friendly platform, it's essential to acknowledge the potential pitfalls of trading in financial markets.
AvaTrade operates in Europe, Australia, and Asia. It does not offer services to US customers, but it operates in Canada through a deal with Friedberg Direct.
2. eToro
Below content does not apply to US users
Founded in 2007, eToro is considered a very low-risk broker as it is highly regulated by the Financial Conduct Authority (FCA) in the UK and many other regulatory bodies elsewhere.
Opening an account is free and you can access a $100,000 demo account to test the system.
It offers 47 currency pairs for trading. Spreads for forex trading have recently been significantly reduced and range from a very competitive 1 to 3 pips for major currency pairs.
Typical spreads for EURUSD and USDJPY trades, for example, are just 1 pip.
You can see the full list of spreads on the eToro website.
You’ll need to deposit a minimum of $200 for Copy Trading, eToro's standout feature which allows you to follow other traders and copy their trades.
This forex broker is great for beginners due to its user-friendly interface and app and 24-hour customer support. It allows you to trade currencies, stocks and cryptocurrencies in one portfolio and the Copy Trading system is a great way to learn.
The company also offers trading courses and features a Learning Lab which houses a variety of tools to support clients with their trading experience.
To find out more, read our eToro review.
76% of retail investor accounts lose money when trading CFDs with eToro. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take two mins to learn more.
3. Plus500
Another user-friendly entry on our list of the best forex and CFD brokers in the UK is Plus500, providing an easy-to-use and accessible service.
You’ll find over 60 CFD currency pairs with competitive spreads, no commission and available leverage of up to 1:30.
Although MetaTrader and cTrader are not available, Plus500’s own platform is very user-friendly. It comes with a range of intuitive risk management features and is available on web and mobile.
Plus500 requires a minimum deposit of £100 if using a credit or debit card, and £500 if using bank transfer.
Plus500 UK Ltd authorized & regulated by the FCA (#509909).
4. IG
IG is a great share trading platform for beginners thanks to its user-friendly interface and extensive educational resources.
Pros of IG include a wide range of trading instruments and markets, as well as the ability to access multiple account types and trading platforms. The platform also offers a demo account for beginners to practise trading strategies before investing real money.
However, IG isn’t the cheapest share trading platform, with relatively high trading fees and a minimum deposit requirement of £250 when paying by credit/debit card or PayPal.
In terms of additional fees, IG charges a commission fee for share trading, starting from £8 per trade. There’s also a custody fee of 0.25% per year for holdings of £250 or more.
Overall, IG is a solid choice for beginners looking for a user-friendly platform with extensive educational resources, but investors should be aware of its fees and minimum deposit requirements.
The best way to buy Tesla shares in the UK in 2024:
- Open and fund a brokerage account with access to the US stock market.
- Decide on the type of shares you want and fill out the relevant tax documentation.
- Complete an investment thesis so you know all threats, risks and opportunities.
- Decide how many shares you want to buy.
- Access your brokerage account, select TSLA and buy the quantity you want.
- Continue to review your Tesla investment for potential threats or opportunities.
What Is Tesla?
Tesla is a Texas-based American company specialising in clean energy.
It is famed for its electric cars and trucks, particularly the Tesla Model 3, which is the most popular electric car in the UK.
However, Tesla also designs and manufactures:
- Battery energy storage
- Solar panels
- Solar roof tiles
As well as offering related products and services such as software upgrades and electric charging points.
It has manufacturing facilities in the US, Germany and China and operations across Asia, the Pacific and Europe.
Despite being founded by Martin Eberhard and Marc Tarpenning, Tesla is more commonly associated with its current CEO, famous billionaire Elon Musk, who recently (and quite controversially) took control of the social media company Twitter.
To date, the company is one of the most valuable companies in the world and, as of 2023, the most valuable automaker.
Tesla employs over 120,000 people worldwide and, in 2022, generated a revenue of $81.46 billion. With revenues like that, it’s no surprise traders in the UK buy shares in Tesla.
Can You Buy Tesla Shares in the UK?
Yes, UK investors can buy Tesla shares. However, it is not as simple as buying shares from a UK-based company.
Tesla’s shares in the US are listed on the Nasdaq exchange under the ticker symbol 'TSLA', so you will need a brokerage or trading platform that grants you access to the US stock market.
You will also need to sign and submit additional tax forms. It isn’t the easiest process, but most brokers won’t allow international trading without it.
Submitting these forms will also prevent a huge tax bill later down the line if you decide to sell.
How to Buy Tesla Stock UK
To make it easier to buy Tesla stock (UK) you can:
- Hire an investment advisor to manage the process
- Invest in Tesla ETFs and mutual funds
The downside of the latter is that you might also have to invest in other companies that don’t align with your values.
For example, you might only want to invest in clean energy.
However, there is no guarantee that the ETFs/mutual funds only have those types of companies.
Best Way to Buy Tesla Shares UK
While there are a couple of different investment options, the best way to buy Tesla shares UK is the following:
Step 1. Open and Fund a Brokerage
As Tesla is not listed on the London Stock Exchange, you will need to open and fund a brokerage with US market access.
Any internet search will yield plenty of brokerage options. Before handing over your money, you want to ensure the one you choose:
- Has great customer service
- Specialises in individual stocks
- Has access to UK and US markets
- Has a good and trustworthy reputation
- Offers currency conversion or low conversion fees
- Supports your budget
- Has a beginner’s support system
As a UK resident, you can also access a Stocks and Shares ISA, which is a unique brokerage account.
It might not be the cheapest way to buy Tesla stock as commission fees tend to be higher. But it does offer capital gains and dividend income tax exemptions and could make managing your finances easier.
The 2022/2023 Stocks and Shares ISA currently has a £20,000 allowance.
For traders and investors looking for long-term success or planning for retirement, a Stocks and Shares ISA could be a rewarding option with the earnings becoming part of your SIPP.
Step 2. Build an Investment Thesis
Once your brokerage account is set up and funded, you will need to complete an investment thesis.
This thesis is a document stating why you want to buy Tesla stock in the UK and any risks associated with this investment.
Despite having a desirable product, Tesla doesn’t have the best financial history.
The share price peaked in 2002 and, following the 2008 financial crisis, crashed.
Unfortunately, Tesla never fully recovered and the value reported in February 2023 puts the share price at about a quarter of its highest value.
In addition, today’s market values are heavily influenced by the actions of the brand and owners.
Elon Musk typically finds himself in the headlines for the wrong reasons. Therefore, anyone serious about buying Tesla stocks needs to:
- Have clear goals about why they are investing
- Understand the whole business
- Analyse all financial statements
- Complete background checks on the management teams
- Identify all weaknesses
- Identify any opportunities
- Use all that information to form an appropriate valuation
Some investors can complete this type of activity quickly, while others might need much longer.
However, proper preparation is essential as it minimises risks and suggests the right time to buy or sell Tesla stock.
Step 3. Decide How Much to Invest
If you have a comprehensive investment thesis, you should be able to identify the best way to buy Tesla shares in the UK and, more importantly, how much to invest.
There is no right or wrong amount here, just the available amount and much you can afford to lose.
An investment of any size is a gamble and you should always invest within your limits.
Step 4. Buy Tesla Shares
After all your research and decision-making, the next step is physically how to buy Tesla shares UK.
To do this, log into your brokerage account, access the share dealing section, search TSLA, enter the number of Tesla shares you want and click the purchase button.
It is important to note that Tesla shares can only be bought when the US stock market is open. This is between 2:30 p.m. and 9:00 p.m. UK time (9:30 a.m. and 4:00 p.m. local time), Monday to Friday.
Step 5. Review and Adjust
Now that you have worked through how to buy Tesla shares and added it to your investment portfolio, you need to watch your investments.
Do this by regularly reviewing the company’s progress and completing an analysis of any potential threats or opportunities in the market.
You might want to buy or sell more shares depending on what you discover.
What Are the Risks of Investing?
Now you know how to buy Tesla stock, you need to assess the risks before parting with your money.
There are numerous risks when it comes to investing and all eventualities need to be considered and controlled.
The main one for all investors is if the price of the stock goes down and the value becomes lower than the original investment value. Unfortunately, so many factors affect share prices and cause non-stop fluctuations.
To avoid falling victim to temperamental prices, the best investors have diverse investment portfolios and a trading strategy that includes several techniques. They also usually focus on long-term goals rather than short-term financial gains.
Top traders also steer away from making rash or emotional decisions. The markets are very reactionary and the slightest rumour can cause a massive ripple effect, resulting in investors panic-selling their shares.
The best place to buy Tesla shares will be a brokerage or trading platform that offers risk management, research and analysis tools, and a variety of share and market options.
If you are new to trading and investing, use the demo accounts most trading platforms offer. This way, you can test your strategy, skills and responses in real-life scenarios without risking your money.
Cheapest Way to Buy Tesla Stock
Deciding who and what to invest in is a personal decision based on the following:
- Financial goals
- Trading strategy
- Portfolio
- Budget
- Thorough research
At the moment, Tesla is experiencing high competition from other car manufacturers and its market share is expected to drop over the next year.
There is also economic uncertainty, talk of recession and a cost of living crisis. All this suggests that people are less likely to make high-value purchases, such as new cars.
For those looking for opportunities to support their long-term strategy, the speculated drop in Tesla’s share price means you’ll get the shares at a greatly reduced price.
The gamble is then trusting in Tesla’s vision and hoping that the prices will increase.
Of course, Tesla doesn’t just manufacture cars. It has other clean energy products, such as solar roof panels, that might become a consumer favourite should more people decide to change their energy sources.
As you can see, many factors determine whether you should invest or not.
Ultimately, the decision comes down to you and your goals.
Frequently Asked Questions
You can buy Tesla shares by first opening and funding a brokerage account with access to the US stock market. Next, you must fill out the relevant tax documentation and complete an investment thesis.
Once you have completed all your research and assessed the risk, decide how many shares you want to buy, access your account and buy them.
Once your shares have been added to your portfolio, keep reviewing Tesla and any potential threats or opportunities.
The best place to buy Tesla shares in the UK is through a broker or trading platform that has access to the US stock market.
Before making your final decision, ensure your broker has a good reputation, no (or minimal) currency exchange fees, educational resources, analysis and research tools, supports your budget and offers many options and markets.
The current cost for a single Tesla share ranges between 165 (accurate on 22nd April 2023).
Tesla does not offer dividends, so a single stock will either have increased or decreased when you decide to sell.
However, the amount you decide to invest depends on your budget and portfolio.
Choosing to buy Tesla stocks is a personal decision and should be based on budget, goals and thorough research.
Tesla expects to lose market share this year to other car manufacturers and the cost of living crisis is leading to fewer high-value purchases.
However, Tesla is a clean energy company and has many other products that might gain traction as consumer trends change.
Tesla is a reputable and innovative company with excellent funding, and the eclectic vehicle market is expected to grow over the next few years.
While Tesla might not have the market share it is used to, there is always the potential for growth and diversification. For long-term investors, the low price might be the perfect time to buy Tesla at a bargain.
There are plenty of online platforms for beginner traders to buy Tesla shares from.
The one most suitable for you will be one that offers lots of educational tools, has a demo account, is reliable, has low fees, supports your budget and has access to the US stock market.
The stock market is forever fluctuating, so a good time to buy Tesla shares is when it suits your income and trading strategy.
The current market value is a quarter of its peak value. Some investors might consider this a bargain and recommend buying now. Others predict that prices will fall further and recommend waiting.
Tesla is certainly a stock you might want to consider for your long-term investment strategy.
While Tesla’s market value is not what it once was, the electric vehicle market is predicted to grow and there are more opportunities in other clean energy markets, such as solar roof panels.
The profit you make on your Tesla shares will depend on the market as a whole and when you decide to sell. There is no guarantee of a profit when trading or investing.
The pros of buying Tesla shares are that the share price is currently a quarter of its highest value, so you are getting a bargain.
The electric vehicle and clean energy markets are set to grow over the next few years and it is a reputable company.
The cons are that the CEO, Elon Musk, is spending a lot of time on Twitter and Space X, which is making current Tesla shareholders nervous. Tesla is losing market share to other car manufacturers and they have failed to bring Tesla’s market value back to pre-2008 recession prices.
Several trading apps will allow you to buy Tesla shares. The best one for you will support your budget, have little or low fees, have excellent educational tools and resources, and be trustworthy.
Before buying Tesla stocks, you must complete a full investor thesis to help you identify any risks, threats and opportunities with your investment.
You also need to consider how many shares you want to buy and how much you are willing to lose. Ultimately, deciding whether to invest will depend on your goals and strategy.
Final Thoughts
Tesla is one of the most recognised companies in the world. With a broad range of products and services, it can offer investors a great return on investment. But, considering all the external factors that affect a share price, it can also be very risky.
Now that you know the best way to buy Tesla shares in the UK, take your time assessing the pros and cons before making your decision.
WikiJob does not provide tax, investment, or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal.
76% of retail investor accounts lose money when trading CFDs with eToro. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take two mins to learn more.
