Tesla, the world’s most valuable automaker, trades on the Nasdaq exchange in the US. Fortunately, there are many brokers regulated by the FCA, the UK’s financial services watchdog, 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 case for Tesla shares and assess their long-term potential.
Here’s a quick walkthrough on how to buy Tesla shares in the UK without paying any commission: We offer a more comprehensive guide on how to invest in Tesla shares in the UK further down. Wondering where to buy TSLA shares in the UK without breaking the bank? If you don’t want to invest too much, you’ll need to choose a broker that supports fractional shares. 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. eToro has over 30 million traders worldwide using its platform, mostly due to its proprietary social and copy trading technology. UK-based traders looking to buy Tesla stock can use social trading to follow the best performers and mirror their positions. This dynamic feature of the eToro platform not only ensures better decisions but also saves time researching and analyzing stock movements. Regulated by the UK’s Financial Conduct Authority (FCA), eToro customers have their funds held in segregated accounts, which are guaranteed up to £85,000 in the event of the company failing. In addition to Tesla, traders can also access over 5,000 other instruments, including cryptocurrencies, commodities, and forex. Additionally, there is around-the-clock support, with assistance available in more than 20 different languages. eToro does not charge traders a commission for buying or selling Tesla stock, the only fee is in the spread. Currently, to buy a share in Tesla will cost $161.86, and to sell is $161.29 – that difference of 57 cents is the spread. This is significantly cheaper than IG, that charges a commission of between $3 and $8 per transaction, therefore, that makes eToro a very competitive choice. Pros Cons
Risk disclaimer: 76% of retail CFD accounts lose money – your capital is at risk. 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 5. 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. Because of this, CFDs give you a lot more flexibility when compared to traditional brokerage accounts. 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. Pros Cons
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. 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. 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 a leverage ratio of 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. Pros Cons
Financial Spread Bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. In this section, we explain why Tesla is one of the most popular stocks to own. Read on to assess whether Tesla is right for your investment portfolio. While Tesla’s shares have come under pressure this year amid sluggish demand for electric vehicles, Tesla remains one of the best-performing shares over the prior decade, making it one of the best shares to buy in the UK. When the company went public in 2010, you would have paid just $1.28 per share (adjusted for stock splits). Today, you’ll pay about $162 per share. This means that since 2010, Tesla shares have increased by nearly 11,200%. So, if you invested £1,000 when Tesla first went public, you’d now be looking at returns of over £112,000. In fact, Tesla is currently trading well below its all-time high of $407, which it hit in late 2021. Had it stayed there, your returns would have been even higher. Nonetheless, Tesla shares continue to outperform the broader markets, especially in the UK. For example, let’s suppose you invested £1,000 in a FTSE 100 index five years ago. Today, your money would be worth just £1,052.80. In other words, you would have made a mere £52.80. 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. 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. One of the most important metrics to look for when researching Tesla shares is its delivery numbers. This highlights the number of cars that Tesla has delivered in a set period, usually per quarter. This information is used by institutional investors to assess the recent performance of Tesla, and how it compares to previous periods. Preliminary delivery numbers for the first quarter of 2024 published by the company on April 2 showed that the carmaker handed over 386,810 vehicles, 8.5% fewer than in the same period a year earlier. This marked the first quarterly drop in vehicle deliveries for almost four years. The carmaker CEO, Elon Musk, blamed shipping disruptions in the Red Sea region, an arson attack at a factory in Germany, and other challenges for the slump. The share price dropped 5% in one day on the news and it’s down 36% so far this year, meaning the company lost a third of its market value in 2024. Dan Ives, an analyst at Wedbush Securities, a long-term Tesla bull, said the delivery figures were “an unmitigated disaster,” and said that “this was a train wreck into a brick wall quarter” for the company. Tesla will report detailed earnings for the January – March period on April 23. In the course of 2023, Tesla fulfilled 1.8 million deliveries, up 38% from 2022, helped by discounts and tax credits. Certain Tesla models are eligible for a $7,500 tax credit in the US, meaning that the firm has been able to offer price reductions. Its Cybertruck, an electric pickup truck, has also faced problems shortly after the first models have been handed over to customers. In mid-April, several customers reported that their deliveries had been postponed. Motoring publications have speculated that the possible reason is a problem with its accelerator pedal. On April 18, Tesla was forced to recall 3.878 Cybertrucks, according to the US Highway Safety National Highway Traffic Safety Administration (NHTSA) because the accelerator pedal pad may come loose and get trapped in the interior trim. This can cause the vehicle to accelerate unintentionally, increasing the risk of a crash, the NHTSA said. Tesla said it will repair or replace the affected parts at no cost to the owner. Nonetheless, Tesla has so many pre-orders for its Cybertruck that there’s a waiting list until 2027. 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: 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. 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. However, 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. 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. 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. 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. 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 Q1 2024. Tesla posted the biggest decline in revenue since 2012, and the carmaker reported squeezed margins and a 55% drop in profit, due to tougher competition and softer EV demand. Tesla also blamed disruptions at two of its factories and reduced average selling prices for the performance. In the first quarter, revenue fell 9% to $21.3 billion, and missed Wall Street estimates. Sales growth might pick up over time as Tesla prepares to start making a new model next year. Gross margin shrank more than expected in the quarter to 17.4% from 19.3% a year earlier. Net income declined to $1.13 billion from $2.51 billion and earnings per share (EPS) fell to $0.34 from $0.73. EPS, adjusted for non-recurring items, was $0.45 , also below analyst estimates, versus $0.85 a year earlier. 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 about $162 each. This gives Tesla a market capitalization of about $508 billion. 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 60%. 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. 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. 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 $180, so the shares are up almost 15,000% from their IPO valuation. 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 price forecasts. A good starting point is to explore sell-side analyst ratings. These are forecasts made by Wall Street analysts for the longer-term potential for Tesla’s share price price and their judgement whether it represents a viable investment. Currently, Tesla’s valuation remains a hot debate between analysts. Based on 48 analyst ratings over the prior 90 days, Tesla is rated as follows: The average analyst rating currently is “Hold.” The average 12-month price target is currently $191, representing a 32% upside potential. Now let’s explore some key Tesla price predictions from notable investors and analysts: Wells Fargo analyst Colin Langan lowered his price forecast for Tesla in April, cutting it for a second time in less than a month, to $120 from $125. That forecast itself was lowered as recently as March from $200, when Langan said Tesla was “a growth company with no growth” and changed his recommendation to Underweight from Equal weight, the equivalent of a cut to Sell from Hold. This shows that Wall Street remains divided on Tesla’s true valuation. 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 with a long-term view continue to be rewarded through stock price growth. While Tesla shares have declined 42% year-to-date, they are up 822% over the past five years. And since its IPO, Tesla shares are up about 11,200%.
Where to Buy Tesla Stock in the UK
1. eToro – Best Platform for Tesla Shares in the UK
Approx No. Shares
Pricing System
Cost to Trade Tesla Shares
5,000+
Zero commission on all stocks, including UK shares.
Spread only – no fixed commissions are charged.
2. XTB – Best Broker for Trading Tesla Shares Without Owning Any
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.
3. Trade Nation – Trade Tesla Shares at a Spread of $0.04
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.
Why Invest in Tesla?
One of the Best-Performing Shares in Recent Times
Electric Cars Are the Future of Mobility
Tesla Delivery Numbers Plummet in Q1
Cybertruck Troubles
Tesla Is More Than Just an EV Maker
Battery Technology
Solar Roof Tiles
Charging Infrastructure
Driverless Subscriptions
Q1 2024 Earnings Report
Tesla is Trading at an Attractive Discount From its All-Time High
Why Has Tesla Split its Stock?
What Is the Value of Tesla?
Tesla Stock Forecast
Does Tesla Stock Pay Dividends?
References
FAQs
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