Tesla is not only the world’s largest carmaker – but the firm has since surpassed a market capitalization of over $1 trillion.

If you’re wondering how to buy Tesla stock without shelling out over $1,000 – this guide will walk you through the process. We’ll reveal where to buy Tesla stock with a commission-free broker that supports fractional stock investments from just $10.

How to Buy Tesla Stocks – Quick Guide

To get the ball rolling, we will show you how to invest in Tesla stock in under five minutes with the leading US broker eToro.

This brokerage site not only allows you to buy stocks from just $10 – but you won’t pay any commission.

  • Step 1: Open an eToro Account
    First, you will need to open an account with eToro – which requires some personal information. You will also need to choose a username and password, and verify your identity by uploading a copy of your government-issued ID.
  • 💳 Step 2: Deposit Funds
    The minimum first-time deposit for US customers is just $10 at eToro. No fees apply on USD deposits and you can fund your eToro account instantly with an e-wallet or debit/credit card.
  • 🔎 Step 3: Search for Tesla Stock
    Type ‘Tesla’ into the search bar at the top of the page. When you see Tesla stock appear – click ‘Trade’.
  • 🛒 Step 4: Buy Tesla Stock 
    You now need to let eToro know how much you want to invest in Tesla stock. As noted, the minimum investment is just $10 – which means that you can buy a fraction of one Tesla stock. Click ‘Open Trade’ to confirm.

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

The above quickfire walkthrough highlights just how easy it is to buy Tesla stock in the US without breaking the bank.

Looking for a more detailed explanation? If so – read on.

Step 1: Decide Where to Buy Telsa Stock

In order to buy Tesla stock online – you will first need to open a brokerage account with a low-cost trading platform. As Tesla is one of the most expensive stocks on Wall Street, it’s a good idea to choose a broker that supports fractional stocks.

We also prefer brokers that offer a speedy onboarding process – which will enable you to buy Tesla stocks in a matter of minutes.

In the sections below, you will find an overview of where to buy Tesla stock online.

1. eToro – Overall Best Place to Buy Tesla Stock

If you’re looking for a low-cost and safe way to buy Tesla stock in under five minutes from start to finish – look no further than eToro. In choosing this top-rated broker, you can buy Tesla stock at a minimum investment of just $10. As such, there is no requirement to risk over $1,000 to purchase a full Tesla stock.

Moreover, eToro offers one of the cheapest ways to invest in Tesla – not least because the broker does not charge any commission. We also found that spreads on blue-chip stocks like Tesla can be traded at highly competitive spreads, which, again, will reduce your investment costs. Additionally, you’ll have access to one of the best stock apps on the market.

Once you have added Tesla stocks to your eToro portfolio, you might then consider diversifying across other companies. At eToro, you will have thousands of stocks and ETFs from lots of different exchanges – both in the US and overseas. Regarding the latter, this is inclusive of markets in Europe, Asia, the Middle East, Canada, and more.

etoro review stock trading

In addition to low fees and fractional stocks, we also like eToro for its copy trading tools. This allows you to invest in the stock market in a passive nature, as you will elect to copy an experienced trader like-for-like. For instance, if the trader buys Tesla and Lucid stocks, the same position will be mirrored in your own portfolio.

It’s also worth looking at the dozens of smart portfolios offered by eToro. These track stocks from specific niche markets – such as electric vehicles or start-ups. Once you’ve chosen a smart portfolio, your basket of assets will be rebalanced and maintained by the eToro team. Both of these passive investment tools come without additional fees.

In terms of getting started, eToro requires a minimum deposit of $10 to open an account. You can fund your account in various ways – including ACH, bank wires, debit/credit cards, and even e-wallets like Neteller and PayPal. No deposit fees are charged by eToro – should you fund your account in US dollars. All in all, when you buy stocks on eToro you’ll be investing with a top-rated and trusted stock broker that’s become home to millions of registered users.

Number of Stocks 3,000+
Deposit Fee FREE
Fee to Buy Tesla Stock Commission-Free
Minimum Deposit $10

What We Like:

  • More than 3,000+ stocks
  • Buy Tesla stock at 0% commission
  • Minimum deposit only $10
  • Regulated by numerous top-tier entities
  • Accepts credit/debit cards and PayPal deposits
  • User-friendly trading app

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

2. Webull – Buy Tesla Stock From Just $5 

webull logoAnother place where you can buy Tesla stock in a low-cost manner is Webull. This popular stock broker is home to millions of US clients of all skillsets. By opening an account with this broker, you will not be required to meet a minimum deposit. Then, you can proceed to buy Tesla stock at 0% commission. 

Although spreads at Webull are typically higher than those you will find at eToro, the broker is still very competitive. We also like that Webull allows you to buy Tesla stock via fractional shares. The minimum trade size is just $5 – which will appeal to investors on a budget. 

webull platform screenshot

In addition to Tesla, Webull is home to more than 5,000 other stocks. Other than a few ADRs, the vast majority of stocks offered by Webull are US-based. As such, Webull isn’t a good option if you are planning to create an internationally-diversified portfolio. On top of stocks, Webull also offers ETFs and options.

You can also buy cryptocurrency at Webull from just $1 per trade. In terms of funding your Tesla stock purchase, Webull accepts ACH and US bank wires. The latter will cost you $8 per transaction, while the former is processed fee-free. Webull also offers a user-friendly mobile app – so you can trade stocks and other assets on the move.

Number of Stocks 5,000+
Deposit Fee ACH – free / Bank wire – $8
Fee to Buy Tesla Stock Commission-Free
Minimum Deposit $0

Pros

  • No minimum deposit
  • Minimum stock investment is just $5

Cons

  • International stocks offered via ADRs only
  • No copy trading tools
  • Does not support debit/credit cards or e-wallets

Your capital is at risk.

Now that you’ve read both reviews you might want more details by reading our eToro vs Webull article.

Step 2: Research Tesla Stock

Once you have decided where to buy stocks in Tesla, the next step is to research Tesla as a company. In doing so, you can make sure that Tesla is a suitable stock investment for your financial goals.

With this in mind, the subsequent sections of this guide on how to buy Tesla stock will cover the  following research points:

  • What Tesla does as a company in terms of business model
  • Outlook on Tesla stock price history
  • Tesla stock price prediction and the possibility of future dividends
  • Reasons to buy Tesla stock
  • Risks to consider before investing in Tesla

What is Tesla?

Founded in 2003, Tesla is an electric carmaker that has since become the largest vehicle manufacturer globally in terms of market capitalization.

This means that Tesla is now bigger than established car companies like Ford – which has been trading for over 100 years.

  • Not only are Tesla models better for the environment, but in comparison to traditional fuel-based cars, they are more efficient and cost-effective.
  • This is why Tesla models are now flying off the shelf – with the firm often unable to meet customer demand.
  • Some of the most successful Tesla models to date include its Model S, Model 3, and Model X vehicles.
  • In addition to its electric car fleet, Tesla is also behind a number of other innovative products and services.
  • For instance, Tesla’s Megapack solar panels can be applied directly onto rooftops via conventional tilling systems.
  • This means that new homes can be moved into with solar tiles already installed.

Moreover, Tesla has also created its own native artificial intelligence (AI) framework that allows Tesla cars to be switched over to driverless mode.

The AI has the capability to install much-needed software updates remotely. We should also make reference to the Tesla Megapack, which is a large-scale battery that can fuel power stations via lithium technology.

Tesla Stock Price – How Much is Tesla Stock Worth?

Tesla first went public in 2010 – with the electric car company opting for the NASDAQ exchange. During its IPO campaign, Tesla priced its stocks at $17 each – which valued the company at approximately $2 billion. With that said, Tesla has since initiated a 5-for-1 stock split – which it executed in 2020. As such, its original IPO price should be viewed at a price of roughly $3.80 per share.

Notably, when Tesla first went public, there was a lot of skepticism about the firm. After all, even in 2003, electric cars were still viewed as a fad. As we now know, Tesla has since gone on to become one of the best-performing stocks of all time. In fact, had you invested in Tesla’s IPO back in 2003 and held onto your stocks today – you would be looking at gains of over 28,000%.

tesla stock price

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

To put that in perspective, an original investment of $5,000 during the IPO campaign would now be worth over $1.4 million. The good news is that it’s still too not late to invest in Tesla – as many market commentators believe that there is still plenty of upside potential on the table.

In more recent times, Tesla stocks have increased in value by over 1,800% across a 5-year period. In comparison, the broader NASDAQ Composite has grown by just 142%. Moreover, across a 1-year period, Tesla stocks have grown by 78%. In comparison, the NASDAQ Composite has increased by less than 10%. This indicates that Tesla is continuing to outperform the wider market.

Tesla Market Capitalization

When it comes to market capitalization, Tesla is now a trillion-dollar company. This makes it one of the largest companies in the US – alongside the likes of Apple, Microsoft, and Amazon.

Tesla Stock Split

As noted above, Tesla executed its first stock split in August 2020. This was based on a 5-for-1 split.

Tesla Index Funds

Tesla was first added to the S&P 500 index in October 2020. This was a major achievement for the firm, as it took just 10 years for Tesla to go from its IPO campaign to an S&P 500 company.

This in itself creates additional demand for Tesla stocks, especially when you consider that the electric carmaker has a weighting of 2.2% as of writing. Only four companies have a larger weighting on the S&P 500.

Tesla E/PS and P/E Ratio

As per its most recent annual reports, Tesla’s earnings per share (E/PS) over the prior three years are as follows:

  • 2020: $0.64
  • 2019: $-0.98
  • 2018: $-1.14

As you can see, it was until 2020 that Tesla was able to move its E/PS into positive territory. And the reason for this is simple – Tesla did not report its first full-year profit until January 2021 – a mere 18 years after the firm was founded.

In terms of its price-to-earnings (P/E) ratio, as of writing, this stands at a whopping 222 times. To put this into perspective, the broader NASDAQ exchange typically hovers at an average P/E ratio of 25 times.

Classic textbook theory would indicate that Tesla is heavily overvalued. However, the P/E ratio alone is not sufficient enough for a firm like Tesla – which in essence, is still a growth stock.

Tesla Stock Price Prediction

When it comes to making Tesla stock price predictions, you are far better off focusing on the fundamentals as opposed to technical data and targets.

For example, it’s a good idea to look at how many orders Tesla receives for its vehicles on a quarter-by-quarter basis – and whether this number is growing.

You can also look at partnerships alongside earnings reports to assess whether Tesla reflects a buy or sell. Nonetheless, according to CNN Business, among42 of its polled analysts, Tesla remains a buy.

Tesla Stock Dividends

Like many growth stocks, Tesla to date has never paid a dividend to shareholders. After all, it wasn’t until early 2021 that Tesla was able to report its first full-year profit.

With that said, Tesla clearly has sufficient levels of free cash flow when you consider that in late 2020, the electric carmaker invested $1.5 billion from its balance sheet to buy Bitcoin.

  • And with this in mind, Tesla recently asked its shareholders to approve a second stock split – which in turn, will pave the way for the firm to launch a dividend policy.
  • Investors responded well to the news, with Tesla stocks jumping 5% on the day of the announcement.

On the other hand, the amount of capital that you will receive in dividends will likely be minute when compared to the upside potential with Tesla’s share price.

As a prime example, fellow NASDAQ stock Apple has grown by over 44% in the prior 12 months, which far outweighs the 0.5% running dividend yield the stocks are offering as of writing.

Is Tesla Stock a Good Buy?

Now that we have covered the technicals, in this section we take a much closer look at fundamental reasons why you might look to buy Tesla stock for your portfolio today.

Stock Split and Dividend Approval is Likely to be Accepted 

As we noted in the previous section, Tesla is looking to execute its second stock split – which will enable it to start paying dividends to shareholders.

  • Most pertinently from an investment perspective, Tesla stock has more than doubled since its previous 5-for-1 stock split.
  • And as such, there is now a lot of excitement in the markets for Tesla shareholders to approve the split – consider how effective it was for the firm’s valuation last time around.

Just remember, if you believe that Tesla shareholders will approve the split, it’s best to enter the market before the official announcement is made.

This will enable you to buy Tesla stock at a much more favorable price – before the broader markets respond.

Strong Quarterly Earnings Report 

Tesla’s most recent quarterly earnings report provided some exceptionally strong results. First and foremost, revenues were up 64% year-on-year, with net income growing by more than 740%.

Net profit margins increased by 421%, while operating income grew by 354%. The only chink in the armor with Tesla’s most results is that based on a year-on-year basis, the figures are somewhat skewed.

tesla earnings report

After all, production levels were reduced in 2021 as per COVID-related restrictions. Nevertheless, in the grander scheme of things, Tesla’s most recent report impressed the markets.

Vehicle Delivery Figures Continue to Rise   

The most important metric to consider before you buy Tesla stock is with respect to the firm’s vehicle delivery numbers.

This essentially takes into account two key figures – the number of vehicle orders Tesla is getting from customers and at what rate the firm is able to meet this demand.

In 2021, Tesla reported an impressive 1 million vehicle deliveries. To put this into perspective, this stood at just under 368,000 and 500,000 in 2019 and 2020 respectively.

Crucially, market analysts predict that in 2022 – Tesla could double its vehicle delivery figures to 2 million. In order for Tesla to meet its goals, the firm is opening new production plants in Texas and Germany.

Electric Vehicles are the Future of Consumer Driving    

There is no getting away from the fact that at some point in the future, more people will be driving electric vehicles than they will conventional fuel-based cars.

  • For example, many governments – especially in Europe, have already announced that in 2030, sales of new petrol and diesel cars will be banned.
  • Naturally, this will pave the way for electric carmakers like Tesla.
  • With that said, demand for electric vehicles is already growing at an exponential rate.
  • For instance, worldwide sales surpassed 6.6 million cars in 2021 alone – which is double the amount from the prior year.

However, and as we cover shortly, Tesla will have a lot of competition in this space in the coming years – not only from other electric vehicle markets but traditional manufacturers like Ford.

Tesla Continues to Outperform Its Competitors     

Another reason why you might decide to buy Tesla stock today is that the electric carmaker continues to outperform its competitors.

  • For example, fellow EV stock Nio – which is a Chinese manufacturer listed on the NYSE, has lost 40% of its stock price value in the prior 12 months – compared to growth of 78% in the case of Tesla.
  • You then have US-based EV stock Rivian – which, since its November 2021 IPO listing, has lost 64% in value. For more details on how to buy Rivian stock read our guide here.

It’s also worth looking at traditional car companies like Ford and General Motors – both of which are investing heavily into the growth of their electric vehicle division.

Over the prior 12 months, Ford stocks have increased by 37%, while General Motors has witnessed a loss of 20%.

Risks of Buying Tesla Stock?

Although Tesla remains one of the hottest stocks to buy in 2022 – the firm does not come without its risk.

When analyzing Tesla stock extensively for this guide, we found that the risks outlined below need to be considered before you part with any capital.

Valuation      

The key issue that remains with investors that are still on the fence with Tesla is with regards to its valuation. There are several reasons why Tesla bears make this case.

First and foremost, it remains to be seen how Tesla can surpass a market capitalization when it only reported its first full-year profit in early 2021. Prior to this, Tesla made a loss for 13 consecutive years.

Moreover, although the P/E  alone can’t determine whether or not Tesla is potentially overvalued – equally, it can not be ignored.

  • As noted earlier, as of writing, Tesla is carrying an unprecedented P/E ratio of 222 times.
  • The best way to compare a firm’s P/E ratio is to look at the broader market, as well as its main competitors.
  • In terms of the former, we already noted that the NASDAQ Composite averages a P/E ratio of approximately 25 times, which is significantly lower than that of Tesla.

It wouldn’t make sense to compare Tesla with Nio or Rivian, as both firms are loss-making entities.

What we can do, however, is look at Ford and General Motors, which, as we noted earlier, are both investing significant amounts of capital into their electric vehicle division.

In the case of Ford, its stocks are carrying a P/E ratio of just 3.75 times as of writing. General Motors is slightly higher at 6.6 times.

Involvement With Bitcoin      

Another risk to consider is Elon Musk’s fascination with cryptocurrencies. As noted earlier, in Q4 2020, Tesla utilized $1.5 billion from its cash flow balance to invest in Bitcoin.

It goes without saying that cryptocurrencies are both highly volatile and speculative, so it was a huge surprise to investors when the announcement was made.

Although Musk’s Bitcoin bet has since paid off – based on the value of the digital currency at the time of the investment, if the crypto markets take a turn significant turn for the worse, as they have done many times previously, this will result in a considerable hit for Tesla.

More pertinently, Tesla is required to report unreliable losses from its Bitcoin investments on a quarter-by-quarter basis, which will have a negative impact on its valuation.

Competition is Likely to be Fierce        

There is no denying that Tesla was the first electric carmaker to enter this space – which has given the firm a significant head start over its competitors. In fact, Tesla dominates the EV industry by a considerable amount in terms of market share.

However, it is important to remember that Tesla isn’t the only EV stock in this arena. For example, you have the likes of Nio, Rivian, and XPeng – all of which are looking to chip away at Tesla’s dominance.

tesla main rivals

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

And, as previously noted, perhaps the biggest risk to Tesla’s dominant market share is that of traditional car companies.

We mentioned that Ford and General Motors are looking to lead the race, albeit, it’s likely that virtually all traditional car manufacturers will eventually dedicate resources to EV production.

After all, the general consensus is that – at least in Europe, sales of petrol and diesel cars will no longer be permitted from 2030 onwards.

Step 3: Open an Account & Buy Share

So now that we have covered the reasons to buy Tesla stock – alongside the potential risks to consider, we can now walk you through the investment process step-by-step.

If you read our brokerage platform overviews earlier, we noted that eToro is the overall best place to buy Tesla stock.

The reason for this is that you only need to risk $10 on this EV stock – and no fees are charged on USD deposits. Moreover, you can buy Tesla stock alongside 3,000+ other equities at 0% commission.

Step 1: Open an eToro Stock Broker Account 

Opening an account with eToro shouldn’t take you more than a few minutes – which includes the ID verification process.

First, after clicking on the ‘Join Now’ button, you will need to choose a username and password. You also need to enter your email address.

etoro review

After reading and agreeing to the terms and conditions, you will need to hit the ‘Create Account’ button.

Next, eToro will ask you to enter some additional personal information. In addition to your full name, nationality, and date of birth – you’ll need to enter and verify your cell phone number.

Step 2: Upload ID

All new clients of the eToro website are required to go through a quick verification process – which is standard among all regulated brokers.

eToro verify account

First, you’ll need to provide proof of address, which can be an electricity bill or bank statement, for example, This document needs to be dated within the prior three months and the address must align with what you provided during Step 1.

Second, for proof of identity, you can choose from a passport, driver’s license, or state ID. Your chosen document must not have expired.

Step 3: Deposit Funds

eToro requires you to make a deposit before you can buy Tesla stock. The minimum deposit for US clients is a mere $10 – and you won’t be charged any transaction fees regardless of your chosen payment method.

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To have your deposit funded instantly, opt for an e-wallet or a debit/credit card. Alternatively, you can transfer funds via a domestic bank wire or ACH.

Step 4: Search for Tesla Stock

Once your eToro account is funded, you can use the search box at the top of the page to find Tesla. Simply start typing ‘Tesla’ and the stock will appear.

how to buy Tesla stock on eToro

When it does, click on the ‘Trade’ button to populate an investment form.

Step 5: Buy Tesla Stock 

If you want to buy Tesla stock instantly at the next best available price – all you need to do is enter your total stake, followed by the ‘Open Trade’ button.

Otherwise, eToro also allows you to set a limit order – meaning you can specify the price at which your Tesla stock order is executed.

how to buy Tesla stock on eToro

Finally, if you see that the order box displays ‘Set Order’ as opposed to ‘Open Trade’, this means that NASDAQ is currently closed. You can still place your desired order, it’s just that eToro won’t be able to execute it until the markets reopen.

How to Sell Tesla Stock 

Once you have invested in Tesla at eToro, the stocks will remain in your portfolio. If as expected Tesla does begin paying dividends, you will be entitled to your share. eToro will add your dividend payments to your cash balance.

When you decide to sell your Tesla stock, you can do this at any time during standard market hours. No commissions are charged on sell orders at eToro.

Tesla Stock – Buy or Sell?

In terms of whether Tesla is a buy or sell, the general consensus across most Wall Street analysts is that the firm remains an attractive long-term investment. In terms of the risks, it is important not to discount Tesla’s valuation – especially when the firm is carrying a huge P/E ratio of over 222 times, as of writing.

Moreover, although Tesla dominates the electric vehicle space right now, it remains to be seen whether this will always be the case. After all, competition in this industry is hotting up – both from EV-only startups as well as traditional carmakers like Ford and General Motors.

Tesla Shares Buy or Sell?

On the flip side, there is no getting away from the fact that Tesla continues to outperform the broader market. As noted earlier, Tesla stock has increased by 78% and 1,800% over a one and five-year timeframe, while the NASDAQ Composite has grown by just 10% and 142% across the same period.

Furthermore, it is expected that a further stock split will be initiated in the coming months. Since Tesla’s previous 5-for-1 stock split in August 2020, its stock has doubled in value. And, perhaps the final icing on the cake for Tesla shareholders is that once the stock split is approved, this will enable the firm to start paying dividends.

Conclusion

In summary, Tesla is one of the hottest stocks on Wall Street – as it has been for a number of years. This S&P 500 powerhouse continues to outperform the broader market – and its vehicle delivery numbers are tipped to double to 2 million cars by the end of 2022.

If you’re ready to buy Tesla stock today, the investment process takes just five minutes from start to finish at eToro. You only need to risk a minimum of $10 on Tesla stock and no commissions are charged on buy or sell orders.

etoro review

Your capital is at risk. 68% of retail investor accounts lose money when trading CFDs with this provider.

Frequently Asked Questions on Tesla Stock 

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