How to Buy Tesla Stock in the UK

Yesterday (24th of October 2024), Tesla shares shot up by 22% after a pretty positive earnings report announcement. In the announcement, CEO of Tesla, Elon Musk, predicted a strong sales rebound in 2025 which caused the electric vehicle company to have its best stock day since 2013.

Tesla certainly seems like a pretty strong company to invest in right now! And if Musk’s predictions are correct, now could be a good opportunity to buy.

In this guide, we will explain how to buy Tesla stock in the UK. We will cover how to find an investment platform, how to conduct market research and how to execute an order.

Step 1: Conduct Market Analysis

Before you leap into buying Tesla stock, it’s essential to do your homework. And no, I’m not just talking about Googling “Is Tesla stock a good investment?” (although, that’s not a bad start). You want to get a well-rounded view of the company’s financial health, growth prospects, and the current market conditions.

Tesla is one of the most volatile stocks in the tech sector – partly thanks to it’s controversial CEO. So, your first step is to look at Tesla’s recent performance. Check the stock’s price over the last year, and see how it’s reacted to significant events.

Some key questions to ask yourself:

• Has Tesla been meeting or exceeding its quarterly earnings expectations?
• How is the electric vehicle market performing overall?
• Are there any new competitors on the horizon that could challenge Tesla?

Tesla just released its Q3 earnings report which should give you everything you need to know.

You can also find this information on financial websites like Yahoo Finance, Bloomberg, or even your chosen investment platform’s research section. The more you know, the more confident you can be in your decision making.

Step 2: Find a Reputable Investment Platform

Once you’ve done your research and you’re ready to buy Tesla stock, you’ll need to choose an investment platform. If you’re new to investing, don’t worry. There are loads of beginner-friendly platforms out there. Check out our list of top investment platforms here!

Look for a platform that’s user-friendly, trustworthy, and has low fees (this is very important!). After all, you don’t want you profits to be eaten up by big bills.

Some of the best platforms for buying Tesla stock in the UK include:

• eToro: This platform has a minimum deposit of $20 and offers ready-made Smart Portfolios which do some of the research for you.
• Hargreaves Lansdown: A solid choice with a long-standing reputation.
• Freetrade: A commission-free platform, perfect for beginners.
• Interactive Investor: This platform is suitable for more advanced investors who want to get knee deep in technical analysis.

Each platform has its pros and cons, so spend a little time comparing their fees, features, and customer reviews before you pick one.

Step 3: Tesla Stock or Tech ETF?

Now, this is where you have to do a little bit more thinking. You could buy individual Tesla shares, which means your investment is fully tied to Tesla’s performance. Or, you could opt for a tech exchange-traded fund (or ETF) that includes Tesla, along with other tech companies like Apple, Amazon, and Google and other members of the magnificent 7.

The great thing about an ETF is that it offers instant diversification. So, if Tesla has a bad quarter but Apple or Amazon soar, your losses might be evened out. It’s a great way of spreading your investments out rather than betting on one company.

For example, the iShares Global Clean Energy ETF includes Tesla along with other renewable energy companies, making it an attractive option for those interested in green investments. Alternatively, the Invesco QQQ ETF includes Tesla as part of a broader tech portfolio.

Not all investment platforms will offer the same ETFs so, spend some time digging around to see what is offered on your chosen platform. And remember, investing in a basket of companies doesn’t mean that you will make money.

Step 4: How Much Can You Afford to Invest?

This step is crucial! Before you buy Tesla stock, you need to ask yourself how much you can afford to invest. Investing in growth stocks, such as Tesla, comes with risks and there is a chance that you could lose money that you invest.

As a general rule of thumb, you shouldn’t invest money you can’t afford to lose. The stock market can be volatile, and while Tesla has had some phenomenal growth, there’s no guarantee that the stock will continue to rise.

You don’t need to buy a full share if you can’t afford one. Many platforms, like eToro, allow you to purchase fractional shares. So, if you’ve only got £100 to spare, you can still buy a portion of Tesla stock. Remember, start small and build your portfolio over time.

Step 5: Connect a Payment Method to Your Investment Account

Once you’ve chosen your platform and decided how much you want to invest, the next step is to fund your account. Most platforms accept debit cards, bank transfers, or even PayPal. Just check for any fees that might apply, as some platforms charge for deposits and withdrawals.

Make sure you link a payment method that you can easily manage, and ideally, one with low transaction fees. After you’ve added funds, you’re ready to move on to the exciting part—buying your Tesla shares!

Step 6: Search for Tesla Stock (or Tech ETF)

Once your account is funded, use the platform’s search function to look for Tesla stock. On most platforms, you can type in the stock symbol, TSLA, and it will bring up Tesla’s profile.

If you’re opting for a tech ETF instead, search for the ETF symbol (e.g., QQQ for Invesco QQQ) and review the list of holdings to make sure Tesla is included.

Before hitting the “buy” button, take a moment to review the stock’s recent performance, price movements, and any news related to the company. This will help you confirm whether this is the right time to buy.

Step 7: Fill Out the Order Form

Now it’s time to buy Tesla stocks. Investment platforms typically offer two types of orders: market orders and limit orders. This can seem a bit confusing at first but, it is relatively simple to understand.

• Market order: This means you’re buying the stock at the current market price.
• Limit order: You can set a specific price at which you want to buy the stock, and the platform will execute your order if the stock reaches that price.

If you’re eager to buy Tesla right now, a market order is quick and easy (it’s just like checking out at an online store!). However, if you think the stock price might drop in the near future, you might prefer to set a limit order and wait for the price to hit your target.

Once you’ve filled in the details and hit ‘buy’. You now own Tesla stock (or a portion of it).

Your shares will appear in your portfolio, which can usually be access from the main dashboard of your chosen investment platform.

How to Sell Tesla Stock

At some point, you’ll want to sell your Tesla stock and (hopefully) pocket some gains. The good news is that selling your shares is just as simple as buying them.

On your investment platform, navigate to your portfolio, select Tesla, and click “sell.” You’ll be given the option to sell all of your shares or just a portion of them. Much like buying, you can place a market order (sell at the current price) or a limit order (sell at a specific price).

Keep in mind that some platforms charge fees for selling, so be sure to check those before making your decision.

Things to Consider Before You Buy Tesla Shares

Tesla might seem like an exciting stock to buy, but there are a few things you should consider before you commit your money. Let’s take a look.

Tesla doesn’t pay dividends

Unlike some other big companies, Tesla doesn’t pay out dividends to its shareholders. This means you won’t receive regular income from your investment. If you’re someone who prefers dividend-paying stocks to generate passive income, this is something to think about.

Elon Musk is at the centre of the ongoing US Presidential campaign

Although he isn’t running for president (however, I personally wouldn’t be surprised if this is his next move!), Elon Musk has recently formed a close relationship with Donald Trump. Negative press from the ongoing presidential campaign could directly impact how Tesla is perceived by investors which could influence it’s stock price.

Tech stocks can be volatile

Tech stocks, in general, are known for being more volatile than other sectors. Tesla’s stock price can swing wildly in response to market conditions, new product announcements, or even tweets from Elon Musk (the ‘king’ of X). Make sure you’re comfortable with the potential ups and downs before you invest.

In the UK< you can invest in Tesla stocks through an online investment platform such as eToro or Hargreaves Lansdown. Before you invest, we recommend conducting thorough research and learning more about the company to decide whether Tesla fits into your overall investing strategy.