How to Buy Tesla Shares in the UK? — Complete Guide
Last Updated: March 30, 2023
Tesla is a prominent company with a bright future. The demand for its shares has been through the roof in recent years, but with the price dropping by 20% in February 2022, many investors wonder if they should load up on shares and drive the price back to the top.
If you’re wondering how to buy Tesla shares in the UK, this guide will tell you everything you need to know about Tesla’s market performance and share price. We’ll also cover topics such as the company’s history, why Tesla shares are so popular, and what impact the Covid pandemic has had on share prices. By the end of this article, you’ll be ready to make an informed decision about whether or not investing in Tesla is suitable for you!
Tesla Company History
The Tesla company, named after a Serbian-American inventor and futurist, Nikola Tesla, was founded in 2003 by engineers who wanted to create affordable, clean energy. Tesla’s investors are Martin Eberhard and Marc Tarpenning, but Elon Musk became the largest shareholder and chairman in 2004 with his $6.5 million (roughly £4.9 million) investment.
Tesla’s goal is to hasten the world’s shift to renewable energy. Its founders hold a firm belief that electric cars can be better, faster, and easier to drive than regular cars, which is why they want to make them available to anyone, not only to the elite few.
The first Tesla car, the Roadster, was released in 2008 and made waves in the automotive industry. Tesla’s unique combination of style and performance has made it one of the most popular car brands in the world.
Over the years, Tesla released four models in total, each of them being more advanced than its predecessors. Still, the general acceptance and excitement about innovative electric cars made Tesla the leader in the electric car industry.
Why Are Tesla Shares in Demand?
One of the reasons Tesla shares are so popular is that the company is still expanding. Tesla has plans to release a range of new vehicles in the following years, and each one is expected to be even more popular than the last. In addition, Tesla is developing self-driving cars and renewable energy sources, both of which are expected to significantly impact the automotive industry.
On top of that, Tesla performed well throughout 2020, despite the pandemic and economic uncertainty. The company had been able to grow its revenue by selling more electric vehicles than ever before (around 500,000 sales), but it broke the record again in 2021. Surprisingly enough, Tesla sold 936,000 vehicles in 2021 — 87% up from the company’s 2020 sales.
Top Tesla Shareholders
Elon Musk owns approximately 172.6 million Tesla shares. That accounts for a 17% stake, making him the largest shareholder. If you’re interested to know who else has their eyes on Tesla shares, the table below will show you who the top Tesla shareholders, besides Elon, are:
|The Vanguard Group, Inc.||5.88%||59,059,842|
|Capital Research & Management Co.||3.65%||36,665,256|
|BlackRock Fund Advisors||3.44%||34,586,917|
|SSgA Funds Management, Inc.||3.23%||32,465,720|
|Geode Capital Management LLC||1.35%||13,571,554|
|Baillie Gifford & Co.||1.08%||10,798,014|
|Jennison Associates LLC||1.06%||10,627,050|
|Fidelity Management & Research Co. LLC||0.95%||9,553,069|
Tesla Stock Fundamentals
As of March 2020, Tesla’s market cap was $96 billion (£71.5 billion). That means the investors have placed a value of $96 billion on the company’s total outstanding shares. Tesla was thus worth more than companies such as Ford Motor Co. and General Motors Co. in 2020.
Almost two years later, Tesla now has a market cap of $869.83 billion (roughly £648.35 billion). This impressive number makes Tesla the 6th most valuable company by market cap.
The main reason for Tesla’s high market cap is the company’s strong prospects. Tesla is still expanding rapidly, and its unique combination of style, performance, and innovation has made it one of the most popular car brands in the world.
Still, despite being one of the most successful companies of the 21st century, Tesla has not paid a dividend since it became a public company in 2010. Some investors are hopeful that Tesla dividends will be a thing in the future, but there is no guarantee that this will happen.
But, in all honesty, Tesla doesn’t pay dividends because it has only just started making good money. Companies that pay dividends have to be well-established, which isn’t the case with Tesla.
Does that mean the company will distribute a share of its profits to investors after it improves its cash flow? Probably not because Tesla intends to invest all profits in future growth, leaving no lucrative dividends for its shareholders.
Tesla Share Price in 2022
It isn’t easy to estimate the exact Tesla stock price in 2022 because it will depend on several factors, including its future growth prospects and the economy’s overall health. However, most experts agree that Tesla shares are likely to be in high demand for many years to come. In other words, Tesla stock is likely to hold its ground during the rest of 2022.
At the moment of writing this article, the price of a single TSLA stock is $839.34 (roughly £625.62). The price dropped by 20.6% in less than 24 hours, but, it rose to $846.72 (roughly £631.12) later that day. So, even if you try to predict the price, you will most likely stumble upon something entirely different. Nevertheless, if you believe the stock price will bounce back, buying Tesla stock may be a good investment.
How to Buy Tesla Shares in the UK?
The Best UK Stock Brokers to Buy Tesla Shares
The best way to buy Tesla shares is through a UK stockbroker. All brokers listed below offer competitive rates and a wide range of investment options. They also provide excellent customer service, so you can be sure to get help if you need it.
1. Fidelity Investments
Fidelity Investments is a good option for buying Tesla shares because the company has a history of solid performance, and it offers a wide range of investment products. In addition, Fidelity is one of the largest providers of mutual funds globally, giving you access to a wide range of other lucrative stock options.
Libertex is available to UK residents, and it’s a decent platform for buying stocks and shares. It offers its users to trade with a demo account, allowing them to learn the basics without putting their capital at risk. Not only will you find Tesla stocks on this platform, but you’ll also get access to a range of other opportunities waiting around the corner.
If you’re a part of the investment world, you’ve probably heard about eToro before. This trading platform is an excellent place to start investing in Tesla shares because you can buy them with 0% commission. Besides that, eToro is one of the best platforms for investors who want to learn the basics of developing trading and investing strategies, helping you win on all fronts.
Research Tesla Shares
There are a few different ways to research Tesla shares before buying them. One of the best ways to get information is to read independent analyst reports. These reports can give you an in-depth overview of Tesla’s business and prospects.
Another great source is Tesla’s SEC filings. These filings include essential financial information, such as Tesla’s revenue and earnings figures. They also contain detailed information about its business operations and plans.
You can also find predictions and commentary on Tesla’s stock price on financial news websites. These websites often feature articles that discuss Tesla’s latest developments and give insights into how the stock is performing.
Finally, it’s a good idea to talk to a financial advisor before investing in Tesla shares. They can help you assess the risks and rewards of investing in this company, and they can give you advice on how to reach your investment goals best.
Deposit Funds to Your Account
Before buying Tesla shares, you will have to deposit sufficient funds into your account. Most forex brokers require a minimum deposit of £100 or £500. However, some brokers have lower minimum deposits, so be sure to check the terms and conditions before opening an account.
Once you’ve deposited funds into your account, you can start buying Tesla shares. First, select the number of shares you want to purchase and the price per share, then click “buy.” Your broker will instantly purchase the shares and hold them in your account.
You can also sell Tesla shares through your broker. First, you’ll need to decide how many shares you want to sell, then click “sell.” The broker will sell the shares at the current market price and deposit the proceeds into your account.
How to Buy Tesla Stock With 0% Commission?
Britons on the lookout for a platform to buy shares with zero commission can buy Tesla shares on eToro. As stated earlier, eToro is a prominent social trading platform that allows you to buy and sell stocks, CFDs, and other assets with zero commission.
eToro also offers a wide range of Tesla stock options so that you can find a suitable investment that matches your needs. In addition, the platform has a user-friendly interface that makes investing easy and fun. You can also join the eToro community to learn from other investors and share trading tips.
Here’s how to buy Tesla shares in the UK on eToro:
- Visit the eToro website and create an account
- Deposit funds into your account
- Head to eToro’s Market page
- Select “Tesla” from the list of companies
- Click on the Trade button
- Then, select “Buy”
- Enter the amount of money you want to invest in Tesla shares
- Set the leverage to X1
- Click on the Open Trade button
- Your shares will be instantly purchased and held in your account
How to Buy Fractional Tesla Shares?
Fractional shares are portions of equity stocks smaller than regular, whole shares. You can buy fractional Tesla shares on Interactive Investor, AJ Bell, eToro, and Moneyfarm, which is why it’s advisable to check out these platforms and see for yourself which one is best for investing in Tesla.
Here’s how to buy fractional Tesla shares on Interactive Investor:
- Visit the Interactive Investor website and create an account
- Add sufficient funds to your account
- Click on the Trade Now button
- Don’t forget to select “International”
- Sign exchange agreements
- Fill out a W-8BEN form*
- Select “Tesla” from the list of companies
- Decide how much you want to invest in Tesla Shares
- Click on the Buy button
- Wait for Interactive Investor to purchase shares
*Investors from the UK have to fill out a W-8BEN form once every three years because this document allows them to reduce the amount of tax they’ll have to pay on UK dividends.
How Much Should You Invest in Tesla Shares?
It is impossible to give a universal solution for investing in Tesla stock. The amount you should put down depends on a variety of things, such as your risk tolerance, investment objectives, and available funds.
That being said, it’s typically a good idea to put a small amount of money in Tesla stock at first. Managing your investments will allow you to hedge against risk and get a better sense of the company’s potential. You can then invest more money in the stock if you’re pleased with its performance.
Impact of COVID-19 on Tesla Shares
The COVID-19 pandemic has had a significant impact on Tesla shares. The company had to shut down most of its production in March 2020, and the stock price has fallen numerous times since the beginning of 2020.
Many analysts attribute this decline to the fact that Tesla is a high-risk investment. Investing in Tesla can be risky because the company continues to face many challenges, including Model S production delays, cash flow problems, and mounting debt.
Despite these issues, Tesla is still a leading player in the electric vehicle market. The company’s products are well-designed and have a high customer satisfaction rating. Tesla also has a strong brand image and enjoys considerable media exposure.
Of course, as the COVID-19 pandemic continues to unfold, it’s critical to keep an eye on Tesla’s stock price and news developments. Your careful examination of Tesla shares and the stock market, in general, will help you make informed investment decisions and maximise your profits.
The Pros and Cons of Buying Tesla Shares
The IBD Stock Checkup tool recently published that Tesla stocks have an IBD Composite Rating of 91 out of 99. For some, that’s more than enough to invest a decent portion of their savings in Tesla. Others, however, may want to learn more about Tesla shares’ pros and cons before adding a new item to their investment portfolio.
So, here are some pros and cons to think about before investing:
Pros of buying Tesla shares:
- The company is a leading player in the electric vehicle market
- Tesla products are well-designed and have a high customer satisfaction rating
- Tesla enjoys considerable media exposure
- The stock price has fallen, providing investors with a buying opportunity
Cons of buying Tesla shares:
- Tesla has faced many challenges since it went live
- The stock is a high-risk investment and should only be bought by experienced investors
- The COVID-19 pandemic has had a significant impact on the stock price
To conclude this article, let’s just say that Tesla shares are not for the faint of heart. In other words, you should familiarise yourself with Tesla stocks before you invest to minimise the chances of losing profits.
Hopefully, you’ve learned how to buy Tesla shares in the UK after reading this guide. Still, we’d advise you to talk to other investors or investment managers before trying your luck with Tesla shares.
Last but not least, if you have any questions regarding this matter, don’t hesitate to leave a comment, and we’ll do our best to give you a proper response as soon as possible!
Tesla shares are currently trading at $846.72. That is approximately £623, but the price will change a few times by the time you read this article. The stock market fluctuates rapidly, hitting new highs and lows every second, so be sure to check the current price on a credible website before buying or selling your Tesla stocks.
No, you can’t buy Tesla stocks directly because this company doesn’t offer a direct purchase program yet. As a result, investors need to use a platform such as eToro or Interactive Investor to start dealing with Tesla shares.
Elon Musk holds 172.6 million Tesla shares or a 17% stake. His investments in Tesla have made him the single largest shareholder of the company.