Tesla is no longer just a car company, it is a brand that has grown to be much more than that. The Palo Alto-based company not only produces electric cars but is also an energy-storage producer that seeks to integrate renewable energy solutions for homes and businesses.
Tesla is also one of the most talked-about companies in the world and as such its share has become exciting to watch and even more, exciting to invest in.
If you want to buy Tesla shares and have no clue where and how to start, this guide is for you. We’ll explain how you can buy Tesla shares in the UK and suggest top brokers that offer Tesla shares. We’ll also analyze Tesla’s history and outlook to help you decide whether it is the right time to buy or sell Tesla shares.
Tesla is listed on the Nasdaq stock exchange under the share ticker symbol: TSLA, meaning you’ll have to find an authorized online broker that allows you trade US shares. As Tesla stock is one of the most widely-discussed shares in the markets these days, you’ll find many online UK stoc kbrokers that offer you trade its shares.
With that in mind, you’ll need to find an FCA regulated broker that not only allows you to buy shares of Tesla but also provides low trading commissions and a reliable trading platform. To help you find the right broker for your needs, below we list the best FCA stock brokers that operate in the UK.
1. eToro – Buy Tesla Shares with Zero Commission
eToro is one of the most popular online brokers in the UK and worldwide. The broker was founded in 2006 and boasts more than 12 million active customers on its platform. The main reason for its popularity is the fact that it offers users a social trading experience so investors can start discussions with other members, get a view on other traders’ positions, and even copy trades of top traders on the platform.
eToro gives investors access to more than 800 global shares from top stock exchanges including the US market. You can trade on US companies like Amazon, Facebook, Google, and Tesla. One of the key benefits of eToro is that it allows you to buy shares outright or using contracts for differences (CFDs). As eToro is also a CFD broker, it enables you to leverage your share position by 5:1, meaning you can buy one share of Tesla with a 20% margin requirement.
When it comes to pricing, eToro is among the most cost-effective options out there. It is a 100% commission-free trading platform, which means you do not need to pay a flat fee when you buy and sell shares, but instead you pay the buy and sell spread of the asset. eToro also does charge any management fees nor rollover (overnight) fees for share trading.
To buy shares of Tesla on eToro’s platform, you will be required to deposit a minimum of $200 – which is around £150. The broker supports many UK payment methods, including a debit/credit card, bank account, and e-wallets such as PayPal. If you want to try the platform out, you can do so for free coutersy of eToro’s $100,000 demo account.
75% of retail investor accounts lose money when trading CFDs with this provider.
2. Plus500 – Commission Free Share CFD Platform with Tight Spreads
Plus500 is another great option for buying Tesla shares online, particularly if you are an active trader. This can be attributed to the fact that this famous CFD broker enables you trade shares from popular markets such as the USA, UK, Germany with leverage of 5:1 and extremely tight spreads. Much like eToro, Plus500 offers a zero-commission policy for stock trading, however, plus500 spreads are a bit more competitive and its trading platform is more suitable for advanced traders.
On top of buying and selling Tesla shares, Plus500 gives you access to over 2000 financial instruments in the form of CFDs – including Exchange Traded Funds (ETFs), commodities, indices, FX currency pairs, and options. You will also have the option to buy or short sell a position. This means you can make a profit by speculating that Tesla shares will decrease in value.
As for the trading platform, the broker offers a user-friendly trading platform that is available on any web browser or, you can download a mobile stock trading app to your smartphone. This broker also adapts the full functionality for seamless ‘on-the-go’ trading, so you can also get Tesla share price alerts notifications to your phone or email.
The bottom line, Plus500 is an ideal platform if you are more interested in a short-term trading strategy. To get started, you can deposit a minimum of £100 with a UK debit/credit card, bank account, or e-wallet.
- Commission-free CFD platform – only pay the spread
- Price alert feature
- Excellent mobile app
- Retail clients can trade share CFDs with leverage of up to 5:1
- A range of risk management tools
- Regulated by the FCA
- Does not offer social trading
- More suitable for experienced traders
80.5% of retail investor accounts lose money when trading CFDs with this provider.
Tesla shares have been on a tremendous rally since the beginning of the year, but that does necessarily mean you need to buy Tesla share right now. Tesla is growing fast, but at the same time, some analysts and investors believe the share is overvalued. To make a good decision, it’s important that you do your own research before you make any investment.
Below, we’ll cover all the basics you need to know about the company including the history of Tesla, its share price performance, and the company’s outlook for the future.
Tesla was founded in 2003 by a group of engineers shortly after General Motors stopped production on its first electric vehicle. The company builds electric and clean energy vehicles and produces battery energy storage from home to grid-scale and solar products such as solar panels.
The eccentric CEO of Tesla, Elon Musk, has joined the company in 2004 after investing $6.3 million in Tesla shares during a Series A round of investment. The company eventually went public in June of 2010, and raised $226 million in its IPO when it offered 13.3 million shares at a price of $17 per share.
Since then, the Tesla share price has been on a meteoric rise, reaching its all-time high of $498.32 early on this year. On August 11th, 2020, Tesla has announced a Five-for-One Stock Split that was implemented on August 31. For those who are not familiar with the term, a stock split is a decision made by a company’s board of directors to increase the number of shares by issuing more shares at a lower price.
Between the 11th of August to the 31st of August, the Tesla share price has increased by 81% but on September 8, the share gave back some of its gains after Tesla dropped 21%, which was the worst single-day loss in the company’s history.
Bear in mind that the Tesla stock split does not change much, but it can be somewhat confusing. The company’s earnings per share calculations change based on the new share price and you may have to adjust the new prices to pre-split figures. For example, when looking at Tesla’s all-time chart, the share price on the day of IPO is $3.84, adjusted to a 5-1 split.
Tesla has never declared dividend payments to shareholders. The company is transparent about its intentions, stating on its official website that it does not anticipate paying any cash dividends in the foreseeable future due to the intentions to continue the company’s growth momentum.
Many people have high hopes for Tesla’s cutting-edge technology and innovative vision. It is clear that Tesla’s investors are looking beyond just the near future, and some even see a strong similarity to Apple.
Whether it is a bubble or not is up for debate but there are certainly some key factors that give Tesla the competitive edge it has achieved so far.
First and foremost, this company is a leading producer of electric vehicles globally. Last year, Tesla has become the world’s largest electric car producer based on sales after it surpassed China’s BYD. Globally, Tesla’s delivered between 367,000 and 368,000 electric vehicle units in 2019.
Another huge factor to consider when analyzing Tesla is the data it collects. Tesla’s electric cars are constantly recording and collecting data, using cameras and other navigation tools to store as much data as possible while driving. This data holds enormous value in its valuation, which according to McKinsey and Co will be worth $750 billion per year by 2030.
Finally, Tesla does not only sell electric cars. Tesla’s Supercharger stations are the fastest and most effective way to charge up electric vehicles that exist in the market, and the new battery modules should last between 300,000 miles and 500,000 miles. On top of that, Tesla produces solar roof products as well as a wide range of solar panels.
Step 3: Open an Account and Deposit Funds
If are ready to buy Tesla shares in the UK, you’ll first need to open an online trading account at a brokerage firm. To help you get started, we’ll walk you through the process using our recommended broker eToro.
To create an online CFD trading account with eToro, you’ll need to visit the broker’s homepage and click on the ‘Join Now’ button at the center of the screen.
This will bring you to a registration form where you’ll need to create a username and password and then enter some personal information that includes your full name, email address, date of birth, nationality, and national insurance number.
On the next step, you will be required to verify your identity by uploading a copy of your driver’s license or passport as well as a recent utility bill or bank account statement. This must be done as eToro is regulated and authorized broker by UK’s top financial regulator, the FCA.
Once your account has been approved, you can deposit funds to your account. As a UK resident, you will need to meet a minimum deposit requirement of $200 (about £150) to get started at eToro. You can make a deposit using one of the payment methods provided by eToro:
- Debit Card
- Credit Card
- UK Bank Transfer
Now that your account is funded and approved, you’re ready to buy Tesla shares. In the eToro’s dashboard, enter Tesla or TSLA in the search box at the top of the screen and click on the first result that pops up.
Then, eToro transfer you to the Tesla share page. On this page, you can find useful information about the share and the company that includes news, stats, interactive chart, and research tools. Once you are ready to place a buying order, navigate to the ‘Trade’ button, and click on it.
Now, you will be taken to an order form where you need to insert the amount you want to invest in Tesla shares. Then, click on the ‘Open Trade’ button. Keep in mind that eToro allows fractional trading, meaning you can invest in Tesla any amount over £40.
Note: If you are buying Tesla shares outside of standard market hours (9.30 am to 5 pm, Eastern Standard Time), you will need to click on ‘Set Order’. Your Tesla shares purchase will then be completed when the markets open.
Tesla share is up +294.53%% this year and analysts remain bullish on Tesla despite the concerns over the Covid-19 pandemic and the turmoil in the markets.
Yet, Tesla’s short interest stands at 22% at the time of writing, which makes it the first-ever company with a $20 billion short bet against it. This is a phenomenon called a short squeeze that refers to the total number of open short positions of a financial asset. As such, the battle between buyers and sellers could intensify and a small correction can lead to a significant drop in value.
Tesla is indeed a dangerous share and might be overvalued at its current price of $330.21. The split has created a wave of demand for Tesla shares given the fact that investors receive a five shares to one ratio, however, at the time of writing, Tesla share is in a tricky spot. So far this year, Tesla shares have dropped from $183.48 on Feb 19 to $72.24 on March 18 but bounced back to reach the all-time high of $498.32 in August.
Tesla isn’t like other companies and is one of the most popular shares among retail investors. While Tesla shares may fluctuate over the course of a few days, it is much closer to a buy than a sell in the long term perspective.
The easiest way to short sell Tesla share is by using a top share dealing account such as eToro. To do that, you’ll have to sign up for a free online trading account, log into the trading dashboard, select Tesla shares, and place a short sell order.
In summary, the outlook of Tesla’s investors will be clearer in the coming days and weeks. Tesla has much more room to grow, in terms of profitability, and the price of its share. Evidently, a number of analysts view the recent pullback as an investment opportunity, increasing the price target to $500-$700.
One thing is certain, Tesla is extremely volatile and unexpected so if you don’t handle volatility very well, perhaps it is not the right investment for you. On the other hand, some say that Tesla is the perfect ‘buy and forget’ investment currently exists in the market and one of the best shares to buy for long-term investors.
Simply click the link below to get started!
75% of retail investor accounts lose money when trading CFDs with this provider.
What stock exchange is Tesla listed on?
Shares of Tesla trade on the NASDAQ stock exchange, under the ticker symbol TSLA
Does Tesla pay dividends?
Tesla does not pay a dividend to shareholders as the company states that it intends on retaining all future earnings to its future growth.
What is the minimum amount of Tesla shares I can buy?
This depend on the platform you choose to buy Tesla shares in the UK. If opting for eToro, for example, you can buy shares from a minimum of $50 (about £40).
Is Tesla a component of stock indices?
Yes, Tesla is a component of the prestigious NASDAQ100 index.
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