Like most people, you’ve probably imagined buying shares of a company that grows in value and makes you enough money to retire early and live a financially secure life. Tesla stock might have been one of your top choices when it comes to buying shares in a growth company.
Investing can be seen as a complex subject, but there are ways to make your investments more accessible. Many stock trading platforms simplify the investing process and have democratized access through the elimination of stock commissions.
That means you can buy one share at a time without having to fork over a per-trade commission. Some apps will allow you to set aside money regularly to buy fractional shares, lowering your barrier to investing in these growth stocks even more.
Today, you can buy shares in companies like Tesla fully online through low-cost (or free) brokers.
While I do not specifically advise you to buy Tesla shares of stock, this article explains how to buy stocks, using the company as an example.
If you want other stock recommendations, I suggest subscribing to some:
I would also consider conducting your own stock research and using the best stock app to vet any investments recommended by these services. Likewise for this stock to see if its risk profile and investment objectives meet your broader investment portfolio goals.
This article does not constitute individualized investment advice under any circumstance.
- 1 Overview of Tesla
- 2 How to Buy Tesla Shares of Stock – Steps to Follow
- 3 Fees For Investing in Tesla Stock
- 4 How to Buy Tesla Shares in South Africa, India and UK
- 5 How to Invest $5 in Tesla
- 6 How to Reduce Risk in Stock Trading
- 7 Bottom Line on How to Buy Tesla Shares
Overview of Tesla
Tesla Motors is a multinational corporation that designs, manufactures and sells electric cars.
The company was first founded in 2003 by a group of engineers from Stanford University who were unhappy with the way traditional car companies operated.
Tesla Motors products are manufactured at its headquarters facility in Fremont where they also do research on new vehicle technology.
The company has sold more than 200,000 electric vehicles in the most recent quarter with plans to grow this sales level to 1,000,000 vehicles by the end of 2021.
Tesla is one of the most well-loved and appreciated tech companies. What started out as a small company with big plans has now become a globally recognized brand for electric vehicles that are not only green but also fast, luxurious and fun to drive!
Tesla’s mission statement from their website says it best: “to accelerate the world”.
The company’s CEO, Elon Musk, has been quoted as saying “Tesla is about accelerating the world’s transition to sustainable energy.”
The controversial CEO has challenged societal norms by refusing to accept the status quo.
Tesla is committed to building affordable electric vehicles that are not only sustainable but also exceptionally safe and smart!
The company operates in more than the electric vehicle market, however, by also producing solar panels and battery storage systems for distributed renewable energy build out.
If you’d like to buy the stock, you’ll need to find an online broker that gives you the ability to purchase the stock through the NASDAQ stock market exchange.
However, this does not mean this is a stock worth buying. You will need to decide for yourself if Tesla is a good stock choice for your individual investing situation.
Let’s have a look at the steps needed to buy Tesla stock now!
Related: Best Stock Market Websites & Stock Analysis Websites
After you’ve decided buying this stock is right for you, you’ll need to know where to start looking to invest in the company. If you’re considering buying shares in the company, it’s important to consider what lies ahead.
Buying this stock and those of other companies, index funds or investments is a straight forward process.
→ Step 1: Find a Good Online Broker
When looking for a good online broker, you’ll first want to consider:
- Which markets the broker can access for trading (not all brokers can buy and sell stocks on the NASDAQ)
- Commissions and fees charged by the company for trading
- What types of stocks, funds or investments are available to trade online
- Whether you can open a brokerage account with this company because of your citizenship status
- You’ll also want to consider how much time you’re willing to spend learning a new platform (typically less than an hour)
- Which margin rates the broker offers
The best investing apps for beginners focus on simplicity, functionality, educational and customer support and cost. I can help you find one at the bottom of this section which makes the best fit for your investing needs.
Some even offer sign up bonuses to give your investing journey a boost. Learn how to get free stocks from online brokers for signing up and funding your account.
Consider the following brokerage choices for starting to invest money:
→ Step 2: Open Your Brokerage Account
After finding your online broker, you must open an account to begin trading. Opening an account with an online broker is much like opening a regular bank account, and it typically requires that you go through your computer or the company’s website.
Depending on the broker, your location and the rules required for opening a new investment account, it can vary in time required to open your brokerage account.
Some apps like Robinhood take only a short time to input your information, have the company verify it and then clear you for trading.
Some brokers also have extensive processes or procedures they must follow for risk compliance, regulations or other reasons.
You’ll want to make sure your money is safe on Webull, M1 Finance or any of the other investing apps listed above.
→ Step 3: Deposit Money In Your Account
When you buy shares, you’ll need to pay cash for them. This means you will need to deposit money into your account (at least above the minimum opening account balance).
Most brokers enable this instantly through verified services like Plaid. While your transfer clears, some allow you the ability to trade on credit until the funds officially settle in your account.
Thankfully, services like Plaid make this money transfer process quick and easy, not to mention highly secure when funding your brokerage account.
Most brokers rely on direct money transfers from your checking account but others will allow you to deposit money from electronic wallets like PayPal.
Now that you’ve found your broker, opened an account and deposited money, you’re ready to begin investing in stocks like Tesla.
From this point, you’ll need to navigate to the stock within your app, enter the amount of shares (or dollars you’d like to invest with fractional shares) you want to buy, select your preferred order type (e.g., market, limit, etc.) and execute the trade.
For greater control, you may want to use a limit order as opposed to a simple market order. Limit orders allow you to specify a price you’d like to buy the stock or better while market orders automatically execute at the price available from sellers.
In thinly traded securities with large bid-ask spreads, this can result in a fairly sizable difference between what you see the stock trading for and what you actually pay.
Related: Best Robo-Advisors to Invest Money Automatically
→ Step 5: Track Your Tesla Position Over Time
Once you’ve bought your stock alongside other suitable investments, you should use the best stock tracking apps to follow it over time.
By monitoring the stock after your initial purchase, you can see how its performance aligns with your overall investment strategy.
Consider reviewing the top brokers below to see which makes the most sense for your needs.
Fees For Investing in Tesla Stock
Despite many of the above brokerages advertising $0 trading commissions, the regulatory authorities in your country may still assess fees to fund their operations. That means you might pay unavoidable fees when you trade shares and other investments.
Commissions, for reference, are fees based on trades you make. They can amount to a flat per trade fee like a fixed dollar amount, or even a percentage of the trade value.
Whether you trade penny stocks on Robinhood or Webull for minimal money or trade whole shares of Berkshire Hathaway, you will need to understand the unavoidable fees charged in some instances.
These fees may vary by brokers. Be sure to check the fine print if these costs to invest appear too great or affect your overall investment decision. They should be very minor and not dramatically impact your inclination to invest in a stock or not.
If you live in South Africa, India or the UK and think Tesla is a great company, you might find it difficult to buy stock in the company without using Contract For Differences (CFDs), or a financial arrangement made using financial derivatives that settle differences between open and closing trading prices with cash.
If you want to buy shares of Tesla in South Africa, India or the UK without using CFDs, you can use a Firstrade account.
You simply need to setup your account, get it approved, fund it and find the stock within the app to buy.
Full list of available countries for Firstrade:
How to Invest $5 in Tesla
If you’d like to invest $5 in Tesla, you’ll need to use a fractional shares trading app to make your purchase. Some of the best fractional shares apps to buy the stock include:
How to Reduce Risk in Stock Trading
Investing in stocks comes with inherent risks. This holds true for Tesla stock as well as any other investment traded on stock exchanges.
Consider reviewing the following tips to reduce the risk in stock trading for your portfolio.
→ Avoid the Investing Scams
The risk involved with investing in stocks is not just related to the price of shares. Investors also need to be on guard against scams that may come their way during this time.
Many people look to take advantage of the current investment climate by promising returns that they cannot deliver.
Investors should never buy into any offer that seems too good to be true or seeks upfront fees without explaining how those funds will be used.
To avoid scams, investors need to know what their risk tolerance is and invest no more than the amount of money they are willing to lose.
When considering which broker to use, consider the following brokers above. All of these have millions of active users and have stringent cybersecurity protections. Further, they offer secure investments that trade openly on exchanges, allowing further protections of your money from theft or fraud.
→ Diversify Your Portfolio
Investing in a single stock carries significant risk. When purchasing shares of stock, consider diversifying into multiple investments simultaneously.
If you choose to buy the stock, make sure you also purchase other suitable investments to balance out your portfolio.
If you have a diversified portfolio, your risk will be spread out amongst the various investments which can help minimize losses.
As an example, if one of the stocks in your portfolio suffers from a downturn, then it may not affect all other holdings as much because they are less concentrated. This is known as “concentration risk” and can dramatically impact your portfolio without proper investing strategies and risk mitigation precautions in place.
After this summary of how to buy Tesla stock online, you should have a clear sense of how to proceed.
Buying any stock is as simple as following these five steps:
- Finding a good broker
- Opening your account
- Funding the account
- Buying the shares
- Reviewing your position regularly
The basics of online stock trading are not difficult to understand. Use this guide as a step-by-step process for buying stocks with trusted brokers from the convenience of your computer or smartphone.