How to Buy Tesla Shares UK for Beginners in 2023

Tesla – the world’s largest automaker, trades on the NASDAQ exchange in the US. Fortunately, there are many FCA-regulated brokers that allow UK investors to buy Tesla shares.

In this guide, we explain how to buy Tesla shares in the UK in under five minutes. We’ll also discuss the investment thesis of Tesla shares to assess their long-term potential.

How to Buy Tesla Shares UK in 5 Easy Steps

Here’s a quick walkthrough on how to buy Tesla shares in the UK without paying any commission:

  1. Step 1: Choose a stock broker: The best place to buy Tesla shares in the UK is eToro; an FCA-regulated broker that offers 0% commission trading. eToro is also user-friendly and it supports fractional shares, meaning you can invest just $10 (about £8) into Tesla.
  2. Step 2: Register an account: Visit the eToro website and open an account. Provide some personal information and contact details. Upload a government-issued ID to instantly verify your account and increase your investment limits.
  3. Step 3: Decide how many Tesla shares to buy: Next, decide how many Tesla shares you want to buy. Currently, Tesla shares cost over $250 (about £200) each. If you don’t want to invest this much, eToro supports fractional Tesla shares. So you can invest any amount from just $10.
  4. Step 4: Make a deposit: You’ll need to deposit funds into your eToro account before you can invest in Tesla shares. You can use a debit/credit card or e-wallet and the minimum deposit is $10. Your payment will be processed instantly.
  5. Step 5: Buy Tesla shares: Finally, search for ‘Tesla’ and click on the ‘Trade’ button. Type in your investment amount (in USD, not GBP) and confirm the order. And that’s it – you’ve just bought Tesla shares without paying a single penny in trading commission.

We offer a more comprehensive guide on how to invest in Tesla shares in the UK further down.

Where to Buy Tesla Stock in the UK

Wondering where to buy TSLA shares in the UK without breaking the bank? You’ll need to choose a broker that supports fractional shares if you don’t want to invest too much. You’ll also need to check what fees apply, as Tesla is listed in the US.

Below, we review the best stock brokers in the UK for investing in Tesla.

1. eToro – Overall Best Place to Buy Tesla Shares in the UK

eToro is the best place to buy Tesla shares in the UK. You won’t need to shell out a fortune at eToro, as it supports fractional investments. So, instead of buying a full Tesla share at $250, you only need to cover a $10 minimum. This means you’ll own a small slice of one Tesla share. You’ll still benefit if Tesla shares increase, just at a proportionate amount.

Moreover, the minimum deposit is also $10. As such, eToro was designed with beginners and budget investors in mind. Not only does eToro make investing affordable but it offers industry-leading fees. For example, you can buy TSLA shares without paying trading commissions. This is the case even though Tesla trades in the US. Moreover, you can also buy other popular US stocks without paying fees.

eToro review

For example, you can also buy Amazon shares commission-free, not to mention Google, Netflix, Ford, PayPal, and many others. If you’re also looking to invest in UK stocks, eToro has you covered. You’ll find home-grown companies like Royal Mail, British American Tobacco, BT, and HSBC. This is in addition to European and Asian stocks. As such, you’ll be able to build a diversified portfolio across many different markets.

To fund your Tesla share purchase, you can deposit funds with a debit/credit card or e-wallet. This includes PayPal and Skrill. It’s best to avoid a UK bank transfer, as you’ll need to deposit at least $250. After you buy TSLA shares, they will remain in your eToro portfolio. You can view how your shares are performing at any time. You can also sell your Tesla shares via your portfolio; as long as the markets are open.

eToro review

Another eToro feature you might like is smart portfolios. This enables you to invest in multiple stocks through a single trade. eToro will manage your investments and rebalance the portfolio accordingly. One of the best smart portfolios is called ‘Big Tech’. In addition to Tesla shares, this smart portfolio also contains Facebook, Google, NVIDIA, Netflix, MasterCard, and other large-cap tech stocks.

Many eToro users also invest in its copy trading feature. This allows you to replicate the investments of a seasoned stock trader. Anything they buy, you’ll also buy without needing to lift a finger. That said, if you prefer making your own investments, eToro offers lots of analysis and research tools. For example, you’ll find sell-side analyst ratings, financial news, market insights, and a real-time Tesla stock chart

eToro smart portfolios

We also rate eToro as the best place to buy Tesla shares in the UK as it’s regulated by the FCA. Even more importantly, eToro is a member of the FSCS protection scheme. This means your investments are covered up to £85,000 if eToro goes out of business. eToro is also regulated by other licensing bodies, such as FINRA in the US and ASIC in Australia. Finally, eToro is also one of the best Bitcoin brokers in the UK. You can also buy other cryptocurrencies, such as Ethereum, XRP, and Dogecoin.

Approx No. Shares Pricing System Cost to Buy Tesla Shares
3,000+ Commission-free on all UK and international shares. 0.5% deposit fee on GBP payments. Variable spread only – no commissions or international premiums are charged.

Pros pros

  • Buy Tesla shares in the UK without paying any trading commissions
  • Buy a small fraction of a Tesla share from just $10 (about £8)
  • Supports thousands of other shares from the US, UK, Europe, and Asia
  • Also one of the best places to buy Bitcoin in the UK
  • Regulated by the FCA and covered by the FSCS
  • Invest in smart portfolios to diversify across multiple markets

Cons cons

  • Deposits are charged a 0.5% FX fee (to convert GBP to USD)

74% of retail investor accounts lose money when trading CFDs with this provider.

2. XTB – Trade Tesla CFDs With Leverage at 0% Commission   

XTB offers a different way to gain exposure to Tesla shares in the UK. While you won’t be directly investing in the company, you’ll be trading its share price via CFDs (contracts-for-differences). For example, if you place a buy order at $250 and Tesla shares increase to $270, you’ll still make the $20 difference. Although CFDs won’t be suitable for all investors, they do come with several perks.

For example, the FCA allows UK clients to trade share CFDs with leverage of up to 1:5. This means you can multiply your Tesla share positions by 5x. So, if you have £200 in your XTB account, you can enter a position worth up to £1,000. Additionally, CFDs also allow you to go short on Tesla shares. This allows you to profit if Tesla shares decline in value. As such, CFDs give you a lot more flexibility when compared to traditional brokerage accounts.

XTB reviews

We also like XTB for its low-fee policy. You can trade Tesla shares without paying any commissions or international surcharges. This is also the case for over 2,100 other shares. XTB supports share markets in the US, UK, and Europe. Moreover, XTB is also one of the best day trading platforms in the UK for commodities. This includes gold, oil, corn, silver, and natural gas. XTB also supports forex and indices.

In terms of account minimums, you get started with any amount at XTB. While there’s no minimum deposit, you’ll need to trade at least $50 (about £40) worth of Tesla shares. If you’re trading UK stocks, the minimum is £40. That said, if you apply leverage to your position, you can trade with smaller amounts. XTB is also a safe online broker – it’s authorized and regulated by the FCA. Finally, XTB also offers a native UK stock trading app for iOS and Android. This is handy for keeping tabs on your Tesla share positions.

Approx No. Shares Pricing System Cost to Trade Tesla Shares
2,100+ Commission-free on all UK and international shares. Variable spread only – no commissions are charged.

Pros pros

  • Trade Tesla shares in the UK with leverage of up to 1:5
  • Go long or short on Tesla shares
  • 0% commission trading on all UK and international markets
  • Regulated by the FCA
  • No minimum deposit policy

Cons cons

  • Minimum Tesla shares to buy is $50

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% of retail investor accounts lose money when trading CFDs with this provider.

3. AvaTrade – Highly Rated CFD Broker With Quick Withdrawal, Top Customer Service, and Tax Free Spread Betting

AvaTrade is a top-rated zero commissions CFD-only broker with tax-free spread betting. On over a thousand spread betting markets, there is no tax whatsoever. AvaTrade supports indices, ETFs, bonds, stocks, FX, cryptos, and options, through its CFDs.

With AvaTrade, all markets are commission free. This includes UK and international markets. Investors looking to acquire Tesla at a discount might do well to investigate AvaTrade further. 

AvaTrade has an impressive rating on TrustPilot from 8,000 customers, with multiple stellar reviews that testify mainly to its quality of customer service. Each account has a dedicated manager that is available to answer queries, as opposed to a token account manager offered by other brokers. AvaTrade works very smoothly in terms of account setup, deposit, and withdrawal. 

The platform is very user-friendly with a small set of features that is perfectly suited to new investors and traders. This is a zero-commission, low-spread provider. It provides negative balance protection and unique copy trading features. Leverage of 1:30 is available with AvaTrade, though this can be increased to 1:400 for those who qualify for a professional account. 

There are a few noteworthy downsides with AvaTrade. This includes the fact that it is not regulated by the FCA and has a minimum deposit requirement of £100.

The biggest issue would be its steep inactivity fee: £50 per quarter with an additional £100 administration fee per year for 12 months of inactivity – £300 in total. It does not have a wide range of assets compared to other providers.

In sum, AvaTrade is perfect for new UK traders looking to explore CFDs and FX products. Customer service is excellent, fees are very low, and the interface is easy to use, for those interested in Tesla stock. 

Approx No. Shares Pricing System Cost to Trade Tesla Shares
Not stated Commission-free on all UK and international shares. Spreads vary depending on the market. Undisclosed. Likely between 0.5 – 2.0 points.

Pros pros

  • Easy to use interface is perfect for beginners
  • Top customer service
  • Supports stocks, indices, forex, commodities, cryptos, and other assets
  • Get started with a free demo account before making a deposit

Cons cons

  • Minimum deposit of £100
  • CFD only

76% of retail investor accounts lose money when trading CFDs with this provider.

4. Trade Nation – Trade Tesla Shares at a Spread of $0.06          

Trade Nation is a popular online broker that specializes in CFDs. It’s one of the most regulated brokers around, with licenses in five jurisdictions. This includes the UK, Australia, Seychelles, Bahamas, and South Africa. Trade Nation offers multiple ways to invest. Some opt for its native web trading platform. While others prefer the mobile app for iOS and Android.

Either way, Trade Nation offers very competitive trading fees. Tesla shares, for example, can be traded at a spread of $0.06. What’s more, Trade Nation doesn’t charge any trading commissions. So it’s only the spread that you need to cover. If you’re looking to diversify your portfolio, Trade Nation supports plenty of other shares.

Trade Nation review

In the US, you can trade everything from Amazon and Apple to IBM and Google. Trade Nation also supports UK-listed shares. A flat commission of 0.1% will apply, based on the amount you trade. Other supported share markets include Europe and South Africa. Both attract a trading commission of 0.2%. Like all CFD brokers, Trade Nation also offers leverage. UK traders are capped at 1:5 when trading Tesla shares.

You’ll also have the option of going short on Tesla if you anticipate a market reversal. Trade Nation is also popular for trading other asset classes. You can trade dozens of forex pairs, as well as commodities, indices, and bonds. Opening an account is simple and Trade Nation supports plenty of convenient payment methods. This includes UK debit/credit cards and online banking.

Approx No. Shares Pricing System Cost to Trade Tesla Shares
Not stated, but covers shares in the UK, US, Europe, and South Africa. Commission-free on all UK and international shares. Spreads vary depending on the market. Spread of $0.06 per traded Tesla share, per slide.

Pros pros

  • Competitive spreads of just $0.06 on Tesla shares
  • No commissions to pay when trading US-listed shares
  • UK shares can be traded at a commission of just 0.1%
  • Regulated by five licensing bodies – including the FCA

Cons cons

  • Limited payment information displayed on its website

Financial Spread Bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67.3% of retail investor accounts lose money when trading CFDs with this provider.

Why Invest in Tesla?

In this section, we explain why Tesla is one of the most popular stocks to own right now.

Read on to assess whether Tesla is right for your investment portfolio.

One of the Best-Performing Shares in Recent Times 

Tesla is one of the best-performing shares over the prior decade, making it one of the best shares to buy in the UK right now. When the company went public in 2010, you would have paid just $1.28 per share (adjusted for stock splits). Today, you’ll pay over $256 per share.

This means that since 2010, Tesla shares have increased by nearly 20,000%. So, if you invested £1,000 when Tesla first went public, you’d now be looking at returns of over £200,000. In fact, Tesla is currently trading below its all-time $407, which it hit in late 2021. As such, your returns would have been even higher.

Tesla share price

Nonetheless, Tesla shares continue to outperform the broader markets, especially in the UK. For example, suppose you invested £1,000 in a FTSE 100 index five years ago. Today, your money would be worth just £1,014.49. In other words, you would have made a mere £14.49. You would have made more money investing in a fixed-rate savings account.

This is why UK investors are now exploring international investment options like Tesla.

Electric Cars are the Future of Mobility  

It goes without saying that electric vehicles (EVs) are the future of mobility. After all, an increasing number of countries have pledged to achieve net zero carbon emissions by 2030. This includes the UK, which will ban sales of new petrol and diesel cars in 2030, brought forward by five years. The European Union will also follow suit, albeit, in 2035.

Nonetheless, as the world’s largest EV maker, Tesla is well-positioned to benefit from government shifts toward a greener world. In fact, society as a whole is becoming more environmentally conscious. This bodes well for Tesla in the long run. As we explain shortly, demand for Tesla cars has never been stronger.

In addition, Tesla is also a major beneficiary of carbon credit sales. Put simply, in many jurisdictions, companies are limited in how much carbon emissions they can release into the atmosphere. If a company requires additional emissions, it must purchase carbon credits from the open market.

As an EV manufacturer, Tesla has a significant surplus of carbon credits. In 2022 alone, Tesla generated nearly $1.8 billion from carbon credit sales, mainly to traditional automakers.

Tesla Delivery Numbers Continue to Rise  

One of the most important metrics to look for when researching Tesla shares is ‘delivery numbers’. This highlights the number of cars that Tesla has delivered in a set period, usually per quarter. In turn, this information is used by institutional investors to assess the recent performance of Tesla, and how it compares to previous periods.

As per Tesla’s most recent earnings report, Tesla fulfilled 466,140 deliveries. Not only did this beat Wall Street expectations, but this represents an 83% increase year-over-year. One of the driving forces for Tesla’s strong quarterly deliveries is pricing. Certain Tesla models are eligible for a $7,500 tax credit in the US, meaning that the firm has been able to offer discounts.

Not only are Tesla cars flying off the production line, but there’s also unprecedented demand for its Cybertruck. This is an EV-based truck that is yet to begin production. Nonetheless, Tesla has so many pre-orders for its Cybertruck that there’s a waiting list until 2027. Ultimately, this shows just how strong the Tesla brand has become.

Tesla is More Than Just an EV Maker 

There is often a misconception that Tesla is simply an EV carmaker. While its EV car sales generate the vast majority of its revenues, Tesla is involved in many other innovative products and services. This is a major plus point for Tesla shareholders, as the company is diversifying into new markets and revenue streams.

Let’s explore some of these markets in more detail:

Battery Technology

Tesla is a leading innovator in the global battery technology space. It has developed multiple batteries that not only last longer, but are significantly better for the environment.

Megapack, for example, is able to power entire energy grids. It also has large-scale commercial usage, such as powering production plants.

Solar Roof Tiles 

Another huge growth market for Tesla is its solar panel division. While solar panels are not a new concept, Tesla solves a major issue – aesthetics. Put otherwise, conventional solar panels are not nice to look at.

As such, Tesla has developed ‘solar roof tiles’ that can replace traditional roofing materials. This means that when new homes are built, they can have solar capabilities by default. If Tesla is able to secure deals with major housing developers, this niche market could be substantial.

Charging Infrastructure  

Tesla continues to develop its charging infrastructure. Not only in North America but globally. As it continues to roll out in new regions, this will increase demand for Tesla EVs further. That said, its charging network is also a revenue driver for Tesla. After all, EV drivers must pay fees to recharge their vehicles.

Tesla Charging Infrastructure  

Moreover, Tesla is also partnering with third parties, such as hotels and industrial complexes. This enables Tesla to charge installation fees, while continuously increasing its global reach.

In addition, Tesla’s charging network can be adapted to support other EV manufacturers. Plenty of carmakers have already partnered with Tesla for this purpose. This includes Ford, Mercedes, and General Motors. This enables Tesla to generate revenues from its competitors.

Driverless Subscriptions 

One of Tesla’s most innovative features is its driverless car technology. And to maximize revenues, Tesla has introduced a subscription service. For $99 per month (or a one-time fee of $15,000), Tesla drivers can activate autopilot mode.

As drivers become more confident in the safety aspect of driverless technology, this could be a huge revenue stream for Tesla in the coming years.

Q2 2023 Earnings Report   

When assessing the potential of Tesla shares, it’s crucial that you keep tabs on its quarterly earnings reports. Every three months, Tesla releases figures related to performance. This includes key metrics like revenues, cost of sales, earnings-per-share, and EBITDA. Earnings reports also highlight the balance sheet, showcasing Tesla’s cashflow position and both short and long-term debt.

Tesla’s most recent earnings report was for Q2 2023.

The quarter was largely very successful for Tesla. Revenues were up 47.20% year-over-year at $24.93 billion. Net income was also up 19.65% to $2.7 billion. Earnings-per-share also saw a rise, up 20.26% to $0.91. There were also improvements on the balance sheet.

Cash and short-term investments were up 21.99% year-over-year at $23.08 billion. Tesla also increased its asset holdings to $90.59 billion, up 24.48%. That said, net profit margins saw an 18.75% dip. This was mainly due to discounted prices on its core EV models.

Tesla is Trading at an Attractive Discount From its All-Time High

If you’re yet to buy shares in Tesla, you can now enter the market at an attractive price. Currently, Tesla shares are trading at over $256. This gives Tesla a market capitalization of over $800 billion.

Tesla stock price

However, in November 2021, Tesla shares were trading at over $407, which remains its all-time high. Based on current prices, you buy Tesla shares at a discount of 37%.

Tesla Share Price History – How Much is Tesla Stock Worth?

While Tesla was founded in 2003, it didn’t go public until 2010. Tesla opted for NASDAQ exchange and its IPO price was set at $17 per share. However, in order to correctly evaluate the Tesla stock price history, we need to factor in its prior stock splits. Tesla has previously split its stock twice. First, it opted for a five-for-one split in 2020. Second, it went for a three-for-one split in 2022. This means that Tesla’s IPO price should be adjusted to $1.28.

Why Has Tesla Split its Stock?

  • Tesla has witnessed unprecedented growth since becoming a public company in 2010. This has resulted in an ever-increasing share price.
  • Tesla decided to split its stocks in 2020, on a five-for-one basis. This means that if you owned one Tesla share in 2020, you would have received an additional four.
  • This made Tesla shares more affordable for retail clients. After all, a stock split results in a decreased share price. In theory, on a five-for-one stock split, the share price should reduce by 80%.

Although there was initially some skepticism about Tesla and the broader EV market, its shares enjoyed a steady upward trajectory after its IPO. By 2015, just five years after its IPO, Tesla shares were trading above $15. This means that in just five years of trading, Tesla shares gained more than 1,000%. Moving into 2020, Tesla shares were trading at just under $30. Within two months, the shares had doubled – trading at over $60.

However, COVID-19 was then declared a pandemic, and Tesla shares declined to $28 in under a month. This was a broader market sell-off and not exclusive to Tesla. Nonetheless, by the end of 2020, Tesla shares closed at over $235. This means that since hitting lows of $29 in March 2020, Tesla finishes the year with gains of over 700%. This was particularly impressive during a time when demand for cars hit record lows.

Tesla stock price

As noted earlier, Tesla shares hit an all-time high of over $407 in November 2021. Compared to its adjusted IPO price of $1.28, this represents an 11-year growth of over 31,000%. Today, Tesla shares are trading at $256, so the shares are up almost 20,000% from their IPO valuation. Looking at Tesla’s price action year-to-date, the shares are up over 137%. Over the same period, the FTSE 100 is down 2.2%. Once again, this highlights just how attractive US stocks are for UK investors.

What is the Value of Tesla?

  • Tesla, like all stocks, is valued based on its market capitalization.
  • This multiplies the current share price by the number of outstanding shares.
  • Currently, Tesla has a market capitalization of over $800 billion – making it one of the most valuable companies globally. It’s also the most valuable carmaker.
  • That said, Tesla was previously worth over a trillion dollars. Its share price has since declined, but many investors believe it will once again become a trillion-dollar stock.

Tesla Stock Forecast

It’s wise to have some realistic expectations when investing in Tesla stock. For instance, how big do you believe Tesla will become, and what share price would you be happy to cash out?

One of the best ways to answer these questions is to look at Tesla stock forecasts. A good starting point is to explore sell-side analyst ratings. These are forecasts made by Wall Street analysts, in terms of Tesla’s price potential and whether it represents a viable investment.

Tesla stock ratings

Currently, Tesla’s valuation remains a hot debate between analysts. Based on 39 analyst ratings over the prior 90 days, Tesla is rated as follows:

  • Strong Buy: 11
  • Buy: 4
  • Hold: 20
  • Sell: 3
  • Strong Sell: 1

Let’s break these sell-side analyst ratings down. First and foremost, just 4 out of 39 analysts have Tesla shares as a ‘Sell’ or ‘Strong Sell’. Additionally, 15 out of 39 analysts, or 38%, have Tesla as a ‘Strong Buy’ or a ‘Buy’. Crucially, just over half of analysts are rating Tesla shares a ‘Hold’. This is likely because many analysts are waiting for Tesla’s Q3 2023 earnings call, which is set for October 18, 2023.

Now let’s look at sell-side analyst price targets. Once again, there is a huge disparity between analysts. Based on the same 39 sell-side analysts, there is a high 12-month price target of $350 per share. This represents a 36% upside based on current prices. However, this is still below Tesla’s all-time high of over $407. The low 12-month price target is just $85. From current prices, this would represent a decline of over 66%.

The average 12-month price target is currently $252.53 – which is 1.35% below current prices. However, these figures are slightly skewed due to the wide disparity between the low and high targets.

Now let’s explore some key Tesla price predictions from notable investors and analysts:

This shows that Wall Street remains divided on Tesla’s true valuation.

Tesla Stock Fundamentals

In this section, we explore Tesla’s key fundamentals. This will enable you to assess the financial strengths and weaknesses of the firm. And in doing so, you’ll be better equipped to make an informed investment decision.

Tesla EPS

Let’s start with the EPS, or earnings-per-share. This financial metric is important to analysts, as it provides a 360-degree overview of Tesla’s profitability. More specifically, it looks at how profitable Tesla is on a per-share basis.

If the EPS increases year-on-year, this shows that the company is growing at a favorable rate. If the EPS is declining, this is a major warning sign that the company is facing profitability issues. The EPS is calculated by dividing Tesla’s net profit by the number of shares outstanding.

  • In Q2 2023, Tesla’s most recent earnings call, the firm reported an EPS of $0.91. This was 11.12% higher than the $0.82 that Wall Street predicted.
  • In Q1 2023, Tesla reported an EPS of $0.85. It missed Wall Street expectations by just 0.43%.
  • In the previous quarter, Wall Street predicted an EPS of $1.11. Tesla exceeded expectations by 7.2%, reporting an EPS of $1.19.
  • And in Q3 2022, Tesla EPS was $1.05. This was 5.23% higher than the $1 expected by Wall Street.

When Tesla reports a higher EPS than the markets anticipated, this often results in bullish sentiment. In turn, Tesla will often see its share price increase.

Period Expected EPS Reported EPS Surprise
Q2 2023 $0.82 $0.91 EPS beat by 11.12%
Q1 2023 $0.85 $0.85 EPS missed by 0.43%
Q4 2022 $1.11 $1.19 EPS beat by 7.20%
Q3 2022 $1.00 $1.05 EPS beat by 5.23%

Tesla P/E Ratio

Once you know the EPS, you can then calculate the P/E, or price-to-earnings ratio. This financial metric allows analysts to assess Tesla’s valuation. In other words, if the company is potentially over or undervalued.

This can only be determined by making comparisons with industry competitors (e.g. other carmakers) and the broader stock markets. To get the P/E ratio, you’ll need to divide Tesla’s share price into its EPS.

Tesla shares currently have a P/E ratio of 72.81 times. In contrast, Ford Motors has a P/E ratio of just 11.78. General Motors has an even lower P/E ratio at just 4.65 times. While this would suggest that Tesla shares are massively inflated based on current prices, this isn’t the case.

Instead, investors price Tesla shares based on their future potential earnings. In other words, investors believe that Tesla will be worth significantly more in the future. This is why Tesla – like many growth stocks, has an abnormally high P/E ratio.

Tesla ROE

The ROE, or return-on-equity, is used to evaluate Tesla’s profitability based on outstanding shareholder capital. You’ll need to divide shareholder equity into Tesla’s trailing 12-month income to get the ROE.

According to MacroTrends data, Tesla’s ROE was 26.18% in June 2023, and 27.37% in January 2023. The ROE was 31.78% in December 2022 and 31.10% in September 2022. While the ROE continues to fluctuate, Tesla’s ROE is considered very high. And as such, Tesla is very effective in using shareholder capital to generate profit.

So how does this compare to other large-cap carmakers? In June 2023 and March 2023, Ford Motors had an ROE of 9.67% and 6.72% – significantly lower than Tesla. Moreover, in December 2022, Ford Motor’s ROE was -4.54%. This means that during the prior, Ford Motor produced a negative return on total shareholder equity.

General Motors saw an ROE of between 12.90% and 13.98% over the prior three periods. While positive, this is still considerably lower than Tesla.

Short Interest Ratio

Another useful metric that analysts keep a close eye on is the SIR, or short interest ratio. Put simply, the SIR analyzes how many investors are short-selling a stock. If too many short-sellers are in the market, this can be a very bearish signal. After all, it means that an increasing number of investors believe that the company is likely to decline in value.

To analyze Tesla’s SIR, you’ll first need to record its average daily trading volume on the NASDAQ. You’ll need to divide this by the number of Tesla shares currently being shorted.

According to the NASDAQ’s most recent filings, there were 81,763,698 Tesla shares being shorted in mid-August 2023. Over the same period, Tesla had an average daily trading volume of 98,846,097 shares. So, Tesla’s SIR is 1 – meaning it would take just 1 day for shorted shares to be covered by average daily trading volume.

In simple terms, a micro amount of Tesla shares are being shorted, so there’s no cause for concern.

P/S Ratio

The P/S, or price-to-sales ratio, is another important metric when assessing Tesla shares. The P/S ratio informs us of how much revenue Tesla is generating when compared to its share price.

Here are Tesla’s P/S ratios over the prior four quarters, as per MacroTrends data.

Date Share Price TTM Sales per Share P/S Ratio
June 30th 2023 $261.77 $27.08 9.67
March 31st 2023 $207.46 $24.80 8.37
December 31st 2022 $123.18 $23.47 5.25
September 30th 2022 $265.25 $21.71 12.22

The figures above show that since December 2022, Tesla’s P/S ratio has been increasing. And as such, this highlights that it is increasing its share price in relation to revenues. This is a good sign for shareholders. That said, the P/S ratio is still below the 12.22 that Tesla saw in September 2022.

Does Tesla Stock Pay Dividends?

Tesla does not and has never, paid a dividend to its shareholders. This isn’t overly surprising, as Tesla is still classed as a growth stock. Sure, it has one of the largest market capitalization on the stock market. However, Tesla is still growing at a much faster rate than the market average.

Moreover, Tesla is reinvesting significant resources into new ventures. This includes continuous improvements to its EV fleet, not to mention rolling out its charging network to new regions.

While Tesla doesn’t pay a dividend, shareholders continue to be rewarded through stock price growth. As noted earlier, Tesla shares have increased by 137% year-to-date. And since its IPO, Tesla shares are up nearly 20,000%.

What to Consider When Investing in Tesla Shares

Now we’ll explore what considerations you need to make before investing in Tesla shares.

Traditional Carmakers are Investing Heavily in EVs

Tesla currently dominates the EV market by a considerable amount. However, traditional carmakers are investing significant amounts into their EV fleets. As reported by Bloomberg, five of the largest US and European carmakers have committed billions of dollars to EV developments. This means that in the coming years, Tesla is likely to have a lot more competition.

In turn, this could have a major impact on demand for Tesla cars. That being said, Tesla has diversified into many other markets, so its reliance on EV sales is likely to be smaller. This includes its ever-growing charging network, Megapack batteries, solar roof tiles, and driverless technology.

Currency Rate Risks

When you buy Tesla shares in the UK, you’ll be investing in a foreign marketplace. In other words, you’ll be depositing funds in pounds, but buying Tesla shares in US dollars. This adds an additional risk to your Tesla stock investment.

  • For example, suppose you buy Tesla shares when GBP/USD is priced at $1.30.
  • When you sell your Tesla shares, GBP/USD is priced at $1.40.
  • So, while you might make a profit from your Tesla investment, you’ll be getting fewer pounds for your dollars.

The exchange rate between GBP/USD can also be a benefit. For example, if GBP/USD is lower from when you made the investment, you’ll be getting more pounds for your dollars.

International Brokerage Fees

You might find that your chosen stock broker charges high fees to invest in Tesla. This is because you’ll be buying shares from an international market. We found that some brokers charge a foreign exchange fee of up to 1%. This will increase your investment costs.

On the flip side, there are also cost-effective ways to invest in Tesla in the UK. For example, eToro doesn’t charge any trading commissions, regardless of whether the stocks are from the UK or abroad. This is also the case with XTB, which offers commission-free trading on Tesla CFDs.

You Could Lose Money

Tesla shares have produced huge returns since going public in 2010. But this doesn’t mean that you are guaranteed to make money. Like all publicly traded companies, Tesla shares can rise or fall. A lot of Tesla’s value is based on speculation, which means they are more volatile than established blue-chip stocks.

Ultimately, if you sell your Tesla shares at a lower price than what you originally paid, you’ll make a loss. Just remember that no investments – regardless of past performance, are a surefire way to make money.

You can reduce your investment risks by diversifying. This means investing in companies other than just Tesla. For example, you might consider other EV companies, such as BYD and NIO. You might also consider traditional carmakers that are investing heavily in the EV industry, such as Ford Motors and Volkswagen.

It’s also wise to diversify away from the EV space. For instance, consider other stock sectors, such as oil and gas, healthcare, real estate, retail, and energy.

How to Buy Tesla Stock UK Tutorial

Still wondering how to buy Tesla shares in the UK?

Below, we show you how to invest in Tesla stock without paying any commission.

Step 1: Open an eToro Account

The best place to buy Tesla shares in the UK is eToro. You won’t pay any commissions and the minimum investment requirement is just $10 (about £8).

eToro registration

Visit the eToro website and open an account. You’ll need to fill out the registration form by entering some basic information.

In addition to your name and home address, eToro needs your phone number, date of birth, and national insurance number.

Step 2: Upload KYC Documents

eToro will now ask you to verify your account. It requires a copy of your government-issued ID, such as a driver’s license or a passport. The document must be valid and in date.

eToro KYC

You also need to upload a recently issued proof of address. You can choose from a bank/credit card statement or a utility bill. Other documents are also accepted.

Step 3: Deposit Money 

The next step is to make a deposit. You can deposit any amount from $10 (about £8) when using a debit/credit card or e-wallet. These payment methods are processed instantly, so you can buy Tesla shares straight away.

Deposit Funds on eToro

But if you want to transfer funds from your bank account, you’ll need to deposit at least $250 (about £200). Moreover, it can take a couple of days for the funds to clear.

Step 4: Search for Tesla 

In the search bar, type in ‘Tesla’. Click on the ‘Trade’ button next to the top result.

Buy Tesla Shares on eToro

This will load an order box on your screen.

Step 5: Buy Tesla Shares  

You will now need to decide how much to invest in Tesla shares. You can type in any amount from $10 (about £8) upwards.

Buy Tesla Shares on eToro

In our example, we’re investing $50 (about £40).

  • If the markets are currently open, click on ‘Open Trade’ to confirm your Tesla share purchase.
  • Otherwise, click on ‘Set Order’ and it will be processed once the markets reopen.

And that’s it – you’ve just bought Tesla shares on eToro without paying any commissions.


Tesla is one of the most popular stocks to own right now. The shares are up 137% this year alone. Since its 2010 IPO, Tesla shares have grown by nearly 20,000%.

You can buy Tesla shares in under five minutes at eToro without paying any trading commissions. Your capital is safe with eToro, as it’s covered by the FSCS. Moreover, you only need to invest $10 (about £8) when buying shares in Tesla, as eToro supports fractional investments.

74% of retail investor accounts lose money when trading CFDs with this provider.



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Kane Pepi

Kane Pepi is an accomplished financial and cryptocurrency writer who has an extensive portfolio of over 2,000 articles, guides, and market insights. With his expertise in specialized subjects such as asset valuation and analysis, portfolio management, and financial crime prevention, Kane has built a reputation for providing clear explanations of complex financial topics. He holds a Bachelor's Degree in Finance and a Master's Degree in Financial Crime, and is currently pursuing his Doctorate degree, which focuses on investigating the complexities of money laundering in the cryptocurrency and blockchain technology sectors. Kane's wealth of knowledge and experience in the field make…