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How to buy Tesla stock

How to buy Tesla stock (TSLA) — 6 steps to invest

Eric Esposito

By Eric Esposito

Fact Checked: Bronwyn Petry

🗓️

Updated: January 10, 2025

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Tesla is the 21st century's trailblazer. Since the release of its iconic Roadster in 2008, this electric vehicle company has been, well, "electrifying" both the auto industry and financial markets. With the ever-eccentric billionaire Elon Musk at the helm, this Texas-based tech titan has become far more than the world's most influential EV manufacturer. Tesla bulls frequently argue that this company encompasses an ecosystem with continued innovations in autonomous driving, battery storage, and artificial intelligence. 

With so much happening at Tesla, it's no surprise this stock has become one of Wall Street's most actively traded names. But before grabbing a slice of this EV heavyweight, weigh the pros and cons of a Tesla investment. 

How to buy Tesla stock

One of the nice features of Tesla stock is its accessibility. As one of the largest US companies and a member of the illustrious "Magnificent Seven" stocks, Tesla shares are easy to find on most trading platforms.

  1. 1.

    Choose a compatible brokerage. First, find a brokerage platform that offers Tesla shares. Today, it's more likely than not a stock trading site has a way to buy Tesla shares, but never assume this before setting up your account. Also, review different brokerage options and compare their features and fees. 

  2. 2.

    Fund your account. After you're approved for a brokerage account, you'll need a way to transfer money into your profile. Many brokerage sites let you link a bank account for Automated Clearing House (ACH) or wire transfers, but you might also get to send money through debit cards, credit cards, or fintech apps. Just be sure to review the different fees for all these options so there are no surprises. 

  3. 3.

    Search for Tesla stock. With your fully-funded brokerage account, it's time to look for Tesla shares. The official ticker for Tesla is "TSLA," so use this in the search tab to find this stock. Review the latest chart data and price action to decide whether you're comfortable entering a Tesla position.

  4. 4.

    Enter your number of shares. If you want some Tesla exposure, you first have to specify how many shares to add to your portfolio. Some brokerages have minimum amounts you must purchase, while others may let you buy fractional shares with as little as $1.

  5. 5.

    Choose an order type. There are a few ways to enter your Tesla position, but the most common are "market" and "limit" orders. A "market order" fills automatically at Tesla's current price, while a "limit order" won't activate unless Tesla hits your predefined price.

  6. 6.

    Review trading fees. Before executing your order, review any commissions and other applicable trading fees for reference. If everything looks good, hit the "buy" button and wait for Tesla shares to appear in your account. 

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About Tesla, Inc.

Although CEO Elon Musk has become the face of Tesla, Martin Eberhard and Marc Tarpenning founded this EV automaker in 2003. It didn't take long for Musk to see potential in Tesla's vision, and he quickly became one of the largest shareholders and eventually the company's top executive. Under Musk's leadership, Tesla introduced some of the world's best-selling EVs, including the Model S, the Model Y, and the Model 3. Not content with its dominant EV status, Tesla continued branching into fields like Full Self-Driving (FSD) technology, solar energy, and battery storage. In 2024, Tesla joined an illustrious group of tech companies with a $1 trillion market1 cap.

Is Tesla a good stock to buy?

From its 2010 IPO at just $17 per share to today's price, Tesla's value has skyrocketed almost 300-fold2 (adjusted for stock splits). This long-term increase is far above benchmark indexes like the S&P 500, and some still feel there's gas — er, electricity — in Tesla's growth engine. 

Investments in self-driving robotaxis, robotics, and new auto models like the Cybertruck have a lot of investors excited about Tesla's future. However, critics often point out Tesla's stretched valuation, and TSLA shares are some of the most volatile on Wall Street. Anyone interested in investing in Tesla has to feel comfortable with a higher risk-to-return profile.

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Pros and cons of buying Tesla stocks

  • Pros of buying Tesla

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    Market leader and innovator. Tesla has the strongest brand recognition for EVs, and its cars continue to rank as some of the best-selling in the electric market. In addition to its pioneering role in EVs, Tesla continues to pour money into new ventures like advanced battery technology, FSD, and energy storage solutions to generate more revenue.

    Attractive growth trajectory. With global EV adoption and clean energy initiatives accelerating, Tesla is in a prime position to benefit from rising demand for its products. New forays into AI and robotics also open growth avenues that could propel this company to new heights.

    Profitability. Since 2020, Tesla has consistently posted quarterly profits and has a large cash reserve on its balance sheet. This financial stability gives investors greater confidence in the sustainability of Tesla's long-term ambitions.

    Highly optionable stock. Tesla's volatility and liquidity combine to make it one of the hottest stocks for options traders. Even if you're not into day or swing trading, this feature makes it easy to hedge long positions or create passive income streams with basic strategies like covered calls.

  • Cons of buying Tesla

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    Price volatility. Risk-averse investors tend to stay away from Tesla due to its wild price swings. There's a lot of media hype swirling around this stock, and the heavy options volumes make it one of the wildest movers among large-cap tech companies.

    Steep valuation. No matter your preferred valuation metric, Tesla trades at a premium. In fact, Tesla is sometimes worth more than the entire auto industry3. Critics of Tesla point out this valuation is unsustainable, even with all of Tesla's impressive products and growth drivers.

    EV competition. Tesla may have a first-mover advantage, but the EV market is getting more saturated. Other automakers like BYD, General Motors, and Rivian are offering alternatives to car buyers, which may steal Tesla's market share.

    High dependence on leadership. Tesla's success largely rests on its visionary CEO's shoulders. While Musk has proven to be one of today's greatest entrepreneurs, there are concerns he's spreading himself too thin with other ventures like SpaceX, X, and Neuralink. Musk's controversial public statements and unpredictable behavior also adds to this stock's volatility.

FAQs

  • Is Tesla a good stock to buy right now?

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    Tesla certainly has a lot of attractive features if you're looking for a company with high growth potential that's involved in many hi-tech fields. However, whether Tesla is a "good buy" right now depends on factors like your risk tolerance and time horizon.

  • How much does it cost to buy a Tesla stock?

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    How much you pay for Tesla stock depends on the company's current trading price and the minimum investment you could make on your brokerage.

  • How can I buy Tesla shares?

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    To buy Tesla shares, you need to use a reputable broker offering exposure to this EV maker. Once you log into your brokerage account, search for "TSLA" and create a buy order.

  • What is the minimum amount to invest in Tesla?

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    Each broker has different rules for minimum investments, so you'll need to review the specifics of your trading platform. Sometimes, you need to buy at least one whole share, while other brokers may let you buy fractions of a share.

Eric Esposito Freelance Contributo

Eric Esposito is a freelance contributor on MoneyWise with an interest in financial markets, investing, and trading. In addition to MoneyWise, Eric’s work can be found on financial publications such as WallStreetZen and CoinDesk. When not researching the latest stock market trends, Eric enjoys biking, walking his dog, and spending time with family in Central Florida. Eric holds a BA in English from Quinnipiac University.

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