How To Invest In Tesla UK – Investing in Tesla For Beginners 2021
Tesla Motors has constantly been making headlines over the past few years, and with billionaire genius Elon Musk at its helm, it’s no wonder why. The electric vehicle market is only growing and with 5-year returns of almost 2,000%, Tesla could be set to explode even further in the next few years. It’s no surprise then, that investors are lining up to buy Tesla shares while they’re still affordable. This guide will discuss some pros and cons to investing in Tesla, reveal our top 3 brokers, and provide you with a detailed explanation on exactly how to start investing in Tesla.
#1 Broker to Buy Tesla – eToro
How to Invest in Tesla – Step by Step Guide 2021
If you’re looking for a quick and easy guide on how to start investing in Tesla, you’re in the right place. If you’d prefer a more detailed guide, complete with pictures, you can find that toward the bottom of the page.
- Step 1: Open an eToro account: The first thing you’ll need to do when investing in Tesla is set up an account with a reputable broker. To do this simply head to “eToro.com”, press “Join Now” and fill in the required information.
- Step 2: Verify your Identity: Because eToro is regulated, you’ll need to verify your identity. Doing so is simple, you’ll just need a photo ID (passport, driving licence) and proof of address (bank statement, utility bill).
- Step 3: Fund your account: Once your account has been verified, you’ll need to fund it. You can do this using either debit/credit card, bank transfer, or e-wallet (PayPal, Skrill, etc).
- Step 4: Invest in Tesla: Now that your account has been verified, you’re ready to invest in Tesla. Just type “Tesla” into the search bar, press “trade” enter the amount you want to invest, and hit “buy”.
Where to Invest in Tesla – Choose a Broker
We understand it can be difficult to choose which broker is right for your needs, but to make it a bit easier for our readers, we’ve written full-length reviews for our top 3 Tesla trading platforms.
1. eToro – All-Around Best UK Tesla Broker
Launched in 2007, eToro has become a titan of the investment sector. They’re trusted by over 17 million loyal customers and known to provide an excellent trading experience to every single one. The platform has several features to help new traders start on the right foot, while still retaining enough advanced features to keep even the most experienced trader happy.
Security & Privacy
If there’s one area that’s important to investors, it’s security. Without good security, the platform would be a target for hackers looking to steal funds. To make sure this doesn’t happen, eToro utilises SSL encryption to obscure sensitive information, keeping your data safe from anyone trying to intercept it. Regulated by both the FCA and CySEC, eToro is subject to regular audits and has to comply with strict rules surrounding how customers’ data should be managed.
Fees & Features
Are you an experienced trader? Or perhaps you’re only just beginning your journey. Well, regardless, eToro is the top brokerage around, and for good reason. New users can benefit from CopyTrading which is a way of automatically mirroring trades, enabling you to earn a passive income. Another great feature for beginners is CopyPortfolios, a CopyPortfolio allows you to invest in a group of related assets without the need for extensive research. More experienced traders can benefit from a wide range of indicators and a plethora of financial markets to choose from. If you’re worried about trading fees, don’t be. eToro offers users commission-free trading to make sure you get the most bang for your buck.
|Fee Type||Fee Amount|
|Inactivity Fee||£10 (Monthly)|
- Commission-free trading
- Range of indicators
- Variety of markets
- Could benefit from MetaTrader support
67% of retail investor accounts lose money when trading CFDs with this provider
2. Capital.com – Invest in Tesla CFDs for Beginners UK
Capital.com may not have lengthy experience in the financial world eToro and AvaTrade do, but they offer some excellent features to make up for it. They’ve done well to create an extremely intuitive trading experience while maintaining a nice bank of advanced features. Combine this with the variety of educational material offered, and you have a recipe for success.
Security & Privacy
To make sure customers are protected, Capital.com is regulated by the FCA and CySEC meaning you don’t have to worry about them taking your money and running. If you’re based in the UK you can enjoy FDIC insurance on all balances up to £85,000, so even in the event of Capital.com getting breached you’re covered. A lot of people have concerns about how their sensitive information is handled, well, Capital.com protects your information from attackers trying to intercept it by using Transport Layer Security.
Fees & Features
Despite only being launched in 2016, Capital.com has done well to generate a loyal customer base. This has been partly achieved by providing a huge amount of guides and courses to new traders, ranging from market guides to a glossary of trading terminology. Experienced traders are also well looked after, Capital.com has TradingView integration, meaning you have a wide range of charting tools at your fingertips. Another commission-free trading platform, Capital.com even does away with inactivity fees to make sure you don’t get hit with any unexpected charges.
- Huge amount of educational material
- FDIC insurance
- Transport Layer Security
- TradingView integration
- Limited to CFDs and real stocks
76.72% of retail investor accounts lose money when trading spread bets and/or CFDs with this provider.
3. AvaTrade – Great All-Around Platform to Invest in Tesla UK
If the previous two platforms we discussed didn’t tickle your fancy, AvaTrade just might. They offer users a well-rounded trading experience, providing a range of markets to choose from, good security, educational material, and all the benefits that come with regulation. This makes it an excellent platform for anyone from a complete beginner to an experienced technical trader.
Security & Privacy
The team at AvaTrade realizes how important security is to investors, which is why they’ve made sure their platform is watertight. Like the other platforms we’ve mentioned, AvaTrade is regulated, meaning users benefit from enhanced data protection. On that front, any sensitive information you might need to provide AvaTrade is 256-bit SSL encrypted, meaning even if someone were to access your data, they couldn’t use it. Additionally, any identity documents or card details are protected with McAfee secure.
Fees & Features
AvaTrade manages to jam pack a huge range of features in a simple to use platform. They have full MetaTrader support, allowing you to use all the indicators and charting tools you could possibly desire. Beginners have access to some excellent educational material covering basic trading and analysis, although not as comprehensive as Capital.com, they’re still very high quality. One area AvaTrade excels over the competition is in terms of accessibility, they offer experienced traders the option of opening up a “Professional Trader Account” (although it comes with some strict requirements). They also allow customers to open an Islamic account, which is certainly a nice touch. Yet again there aren’t any commission fees on AvaTrade, but if you go a few months without trading you’ll get hit with some steep inactivity fees.
|Fee Type||Fee Amount|
|Inactivity Fee||£50 after 3 months & £100 after 12 months|
- Great all-around platform
- 256-bit SSL encryption
- Guides on analysis
- McAfee Secure
- High inactivity fees
- Lacking any unique features
Your Capital is at Risk.
Invest in Tesla UK – Broker Price Comparison
To help our readers decide which brokerage is best suited for their needs, we’ve created this table comparing the fees on each platform.
|Broker||Commission||Deposit Fee||Withdrawal Fee||Inactivity Fee|
|eToro||0%||£0||£0||£10 monthly (after 12 months inactivity)|
|AvaTrade||0%||£0||£0||£50 after 3 months, £100 after 12 months|
What are the Different Ways to Invest in Tesla?
There’s quite a large range of options available when deciding how to invest in Tesla. As a whole this is great for investors, there’s nothing negative about having options. Unfortunately, because of the amount of financial jargon used when explaining different ways to invest, it can be very confusing for beginners to understand the differences between them. To help solve this issue, we’ve broken down 3 of the most popular ways to invest, explaining them in simple terms.
Do you believe in Tesla? If the answer is yes, stocks might be perfect for you. Stocks are perfect for beginners or anyone looking to make a long-term investment. When you buy a stock you’re buying a tiny fraction of a company. This means that whatever happens (short of selling) you own that portion of Tesla, making a stock an asset.
CFDs (Contract For DIfference)
A CFD otherwise known as a contract for difference is a type of financial instrument that differs greatly from a stock. Instead of investing in a company or purchasing anything, you simply speculate on whether a price will increase or decrease. This means that you don’t own the underlying asset. Because a CFD is speculative and can be subject to liquidation, it’s typically better for short trades.
An index fund sometimes referred to as indices, is a way of investing in a large group of assets, in an attempt to minimise risk. A fund manager would build a portfolio that aims to match the returns of a certain index. An example most people will have heard mentioned at some point is the S&P 500. The fund manager would buy stocks that are included in the index, in an attempt to match the overall performance of the S&P 500.
Best Ways to Invest in Tesla UK
Now that we’ve discussed the different ways you can invest in Tesla, it seems fitting we explain who can best benefit from each investment type. You should always think about your investment strategy and weigh that against the options each type of investment offers you.
Invest in Tesla Stocks
The simplest and most common way of investing in Tesla is stocks. Perfect for the long-term investor, stocks provide the with buyer fractional ownership of a company. This means that when you buy a share of Tesla, you’re technically a part-owner, this comes with several advantages. If you purchase enough shares then you can start to receive dividend payments (typically quarterly or yearly), dividends are a company’s way of paying a small portion of its profits forward to investors. Additionally, with enough shares, you can gain voting rights, letting you have some say in the direction of the company. The more shares you own, the more votes you can cast, meaning with enough shares you can have quite a large impact on Tesla.
Invest in Tesla CFD
Perfect for the short-term investor or day trader, a CFD works quite differently from stocks or an index fund. Instead of investing in a portion of the company, or a fund, you speculate on which direction the stock price will go, earning money from the difference between your entry and exit price. Because CFD trading is speculative, you can profit regardless of if the stock price rises or falls, so you don’t necessarily even need to have faith in the company. Typically, when trading CFDs you’ll be taking advantage of small price movements, because of this if you didn’t have significant capital you wouldn’t make much money. To alleviate this issue, you can trade using leverage, allowing you to amplify your profits and losses up to a factor of 5.
Invest in a Tesla Index Fund
Often regarded as the safest form of investment, an index fund is a way of investing in a large range of companies at once. Because you’re invested in a large range of companies, you’re shielded from one of them failing, this greatly reduces the amount of risk you take on. Legendary investor Warren Buffett has shared his love of index funds, stating that they’re an excellent option for anyone saving for retirement or their later years. As such, we recommend an index fund for those looking for a long-term investment or a way of protecting their wealth against inflation.
Is Tesla a good investment UK?
Tesla is one of the most talked-about companies in the world and for good reason. They have a genius at the helm and have paved the way for electric vehicles to become mainstream. In just one year the stock price is up over 80% and in 5 years, over 1,800%. With numbers like this, it’s no surprise investors are looking to get their hands on a portion of the company before its next innovation.
Electric Cars Are The Future
It’s no secret that fossil fuels are going to soon be a thing of the past, they’re a finite resource and terrible for the environment. Neither of these sounds like positive attributes when it comes to a source of fuel for vehicles or anything else for that matter. As such, it makes sense that many would look toward an alternative, this is where electric vehicles come into play. A few years ago EVs (electric vehicles) were something of a novelty, they couldn’t cover many miles, weren’t very fast, and didn’t have much style. This, however, changed rapidly, as it stands today, the Plaid Model S is one the fastest production cars in the world, can cover almost 350 miles and hosts a huge amount of futuristic features like autopilot.
There aren’t many companies innovating as much as Tesla. First, it was the electric vehicle market, then it was wearables, following that was AI and deep learning, and even alternative transport (hyperloop). As we can see Tesla is dipping its toes in a lot of different markets, having a diverse set of offerings is hugely beneficial because, in the event of issues in one sector, the others can help make up for missing revenue. Because all of these markets are relatively new and predicted to be huge in the future, Tesla investors should be excited, should Tesla become the go-to in any of these sectors early investors could see huge profits.
Investing in Tesla – What are the Risks
Despite Tesla posting excellent rates of growth year after year, there are still several risks potential investors should be wary of. It’s always important to weigh the risks against the advantages to make sure an investment makes sense.
Elon Musk is the world’s richest man and Tesla CEO, you’d think having the wealthiest man in the world at the helm of the ship would be great, but as it turns out it’s a double-edged sword. On one hand, you gain the benefit of a huge amount of free publicity, this is evidenced by Tesla’s near £0 marketing spend. On the other hand, however, if you think back to Musk’s 2018 appearance on the Joe Rogan podcast, Musk managed to wipe almost 10% off Tesla’s share price, shaking investors’ confidence. Ultimately, the price of Tesla ended up recovering and some may say the huge amount of publicity the podcast generated was well worth the temporary blip, but it almost certainly lost some investors a lot of money.
Despite Tesla having the majority of the electric vehicle sector, as technology improves more and more car companies are releasing their own electric vehicles. While some competition is always healthy and promotes innovation, a fair amount of Tesla’s initial success came from their status as the original electric vehicle manufacturer (at least the original consumer-friendly EV). As electric vehicles improve drastically, it’s entirely possible that they will lose their premium status, or get overshadowed by new releases. If either of these were to happen it could spell disaster for the Tesla stock price, and therefore investors too.
How to Invest in Tesla with eToro
If you’re looking for a comprehensive guide on how you can start investing in Tesla, we’ve got you covered! Just read through this guide and you’ll be ready to invest in just a few short minutes.
Step 1: Open an account with eToro
No matter what you want to invest in, the first step is registering with a reputable brokerage. For this, we recommend eToro, they offer users an extremely simple onboarding process, industry-leading security, and enough features to keep even the most experienced trader busy. Simply type “eToro.com” into your browser, press “Join Now”, and fill in the necessary details.
67% of retail investor accounts lose money when trading CFDs with this provider.
Step 2: Verify your account
Any reputable brokerage in 2021 will be regulated. This means that they have to comply with strict rules surrounding money laundering and the protection of customers’ data. Because of this, you’ll need to verify your identity, luckily this process is easy. All you’ll need is a photo ID (passport, driving licence) and proof of address (bank statement, utility bill)
Step 3: Fund your account
Once your eToro account has been verified, you’re almost ready to start investing. The last thing to do before buying some Tesla stock is to fund your account. Just click on “Deposit Funds” enter however much you’d like to invest and press “Deposit”. eToro has a range of payment methods available, you deposit using either a credit/debit card, bank transfer, or e-wallet (PayPal, Skrill, etc)
Step 4: Invest in Tesla!
Now that you’ve funded your eToro account, you’re ready to invest! Just type “Tesla” into the search bar, press “Trade”, enter how much you want to invest, and lastly press “Buy”. Your Tesla shares will be automatically credited to your account.
There we have it! You’ve reached the end of our guide on how to invest in Tesla, we hope you enjoyed it! After reading this guide, you should know some merits and detriments to investing in Tesla, be able to decide which broker is right for you, and understand the eToro onboarding process. If you’re still debating if investing is right for you, we recommend giving it a go, there’s no better time to start investing than 2021 and with our recommended broker eToro you can start investing from as little as £25. On top of this, they have a great range of features tailored to those without extensive experience, that will help you start making money in as little time as possible.
Where can I Invest in Tesla UK?
What is a Tesla Index Fund?
What is a Tesla Stock?
What’s the Future of Tesla?
Should I Invest in Individual Stocks or an Index Fund