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If you’re ready to invest in Tesla but don’t know where to start, you’re in the right place.
This guide walks you through everything — from setting up a brokerage account to deciding how much to invest and actually placing your order.
Let’s get into it.
Key takeaways
Open a brokerage account to invest in Tesla stock, considering features like fees, investment options and the availability of fractional shares
Thoroughly research Tesla’s fundamentals, including revenue growth, profitability and innovative business model, to make informed investment decisions
Regularly monitor your investment in Tesla and reassess your portfolio to align with financial goals, while considering alternative investment options such as ETFs and mutual funds
Step-by-step guide to buying Tesla stock
Alright, so you’re ready to get in on some Tesla shares and feel like a part of the EV revolution.
Here’s how you can get started, the smart (and beginner-friendly) way:
First things first, you’ll need a brokerage account.
Think of this as your ticket to the stock market. If you’re in Canada, pick a broker that’s not just beginner-friendly, but also easy on fees.
My top picks?
Signing-up is pretty straightforward — just have your ID handy (passport or driver’s license will do).
Once your account is set up, you’ll need to load it with some cash. Most brokers let you fund it via:
- Bank transfer: Typically the cheapest route (and my go-to)
- Debit or credit card: Quick, but watch for fees
- Wire transfer: Unless you’re moving large sums, this one’s probably overkill
Pro tip: Stick with electronic fund transfers if you’re fee-averse like me.
Here’s the fun part. Open up your broker’s platform and type “TSLA” into the search bar. You’ll see Tesla’s current market details pop up. It’s like window shopping, except now you’re buying a piece of Elon’s empire.
You’ve got two main options here:
- Market order: Quick and simple. Your shares are bought instantly at the going rate.
- Limit order: Feeling patient? Set a max price you’re willing to pay, and the system will buy when (or if) Tesla’s price hits that number.
Decide how much you want to invest — whether it’s a couple of full shares or just a slice (thanks to fractional shares) — then click the “Buy” button.
Congratulations, you’re officially a Tesla shareholder!
Now that you’re in the game, don’t just set it and forget it (unless that’s your strategy, which isn’t a bad one!). But use your brokerage’s tools to monitor how Tesla’s performing. Price changes? Market news? Big product announcements?
In other words, stay in the loop.
Considerations before investing in Tesla stock
Investing in Tesla stock is an adventure — and not always the smooth sailing kind. Before diving in, here are a few key things you’ll want to consider.
If Tesla stock were a person, it’d still be that unpredictable friend who keeps you guessing. And lately? They’ve been on a bit of a bender.
After a strong run through late 2023, Tesla shares took a sharp turn south. In early 2024, the stock dropped over 25% in just a few weeks, wiping out tens of billions in market value. Investors hit the brakes after Tesla reported slowing growth, tighter margins and concerns around softening demand — especially in China and Europe, where competition is heating up.
It’s a wake-up call that even giants stumble.
But here’s the flip side: volatility cuts both ways. Tesla’s still a lightning rod for innovation, and any breakthrough — whether it’s new battery tech, better margins, or a hot product launch — could send shares soaring again.
Bottom line? If you're buying into Tesla, make sure you've got the stomach for swings. You might be riding high one month and white-knuckling it the next. That’s the price of investing in a high-growth, high-hype stock.
Tesla has been the electric vehicle (EV) king for a while, but challengers are showing up and they mean business. Big names such as Ford and GM are rolling out EVs, including the F-150 Lightning and Chevy Silverado EV — serious contenders in the pickup space.
And then there’s Rivian, making waves with innovative electric trucks and SUVs.
So what does this mean? Well, Tesla’s throne isn’t as secure as it used to be. More competition means pressure on Tesla to keep innovating and maintaining market share.
Tesla’s still more than a car company — that part hasn’t changed. But the road to long-term growth? It’s looking bumpier than before.
The company’s expanding into energy storage, AI, robotics and autonomous tech — all big, bold bets on the future. And yes, the vision is compelling: robotaxis, solar roofs, and homes running off Tesla Powerwalls. It feels like sci-fi that could actually happen.
But here’s the thing: growth is getting expensive, and the profits aren’t keeping pace.
In Q4 2023, Tesla’s operating margin dropped to 8.2% — down sharply from over 16% a year earlier. They’ve slashed prices multiple times to stay competitive, which helped move units but hurt profitability. And while deliveries hit record highs, they came in below Wall Street’s expectations, raising red flags for investors.
Competition’s also eating into Tesla’s edge. Chinese automakers like BYD are undercutting Tesla on price and production. Legacy brands like Ford, GM, and Volkswagen are catching up fast with solid EV offerings of their own.
So what does this mean for you as an investor?
If you’re in it for quick returns, Tesla might test your patience. But if you believe in the long-term story — and are willing to ride the waves — Tesla’s still one of the most ambitious bets you can make on the future of mobility and clean energy.
Here’s my take (as a Tesla Model Y owner and shareholder):
Tesla’s long-term potential is rock solid. They’ve got the innovation, the market position and the grit to bounce back from challenges stronger than ever. If you’re all about aligning with a bold vision of the future, this may be a company worth riding with. Just make sure your strategy matches Tesla’s pace, because it’s a fast one.
Alternative ways to invest in Tesla
Investing in Tesla stock directly is exciting — no doubt about it. But if you’re looking for other ways to get in on Tesla’s growth, you’ve got options.
Let’s break them down.
ETFs that hold Tesla
If diversification is your vibe, exchange-traded funds (ETFs) are a solid choice. They let you spread your investment across multiple companies, lowering the risk of putting all your eggs in one basket. Here are two popular ETFs that include Tesla:
- ARK Innovation ETF (ARKK): Run by ARK Invest, this ETF focuses on disruptive tech and often has a big slice of Tesla in its portfolio
- Vanguard Total Stock Market ETF (VTI): A broader option that gives you exposure to the entire U.S. stock market, including Tesla
With ETFs like these, you can ride Tesla’s growth while keeping your portfolio balanced. It’s like having your cake and eating it, too.
Fractional shares
Not ready to cough up the cash for a full Tesla share? No problem. Thanks to fractional shares, you can invest in Tesla with smaller amounts — perfect for beginners or anyone with a tight budget. Think of it like grabbing a slice of the pie instead of the whole thing.
Consider other EV stocks
Tesla may be the EV poster child, but it’s not the only game in town. If you’re interested in spreading the love (and risk), check out these other players in the electric vehicle space:
- Lucid Motors (LCID): A luxury EV maker with innovative battery tech
- Nio (NIO): A Chinese EV company killing it with cutting-edge features and battery-swapping solutions
- General Motors (GM): This legacy automaker is making waves with its electric lineup, including the Chevrolet Bolt
- Volkswagen (VWAGY): With ambitious EV plans, VW is stepping up as a serious Tesla rival
By diversifying within the EV sector, you can tap into the industry’s overall growth without putting all your chips on one brand.
So whether you go for ETFs, fractional shares, or branch out into other EV stocks, there’s more than one way to get a piece of Tesla’s action.
Each option offers unique perks, so think about your goals and pick the strategy that fits your style. Whatever you choose, it’s all about staying smart and keeping your investments aligned with your plan.
Managing your Tesla investment
Managing your Tesla investment isn’t just about buying in and hoping for the best — it’s about keeping tabs, making informed decisions and having a solid game plan for when to sell.
Here’s how to stay on top of things:
Tracking and analyzing Tesla’s performance
If you’re going to invest in Tesla, staying updated is non-negotiable. Thankfully, there are tonnes of tools to help you do just that:
- Portfolio tracking apps: Apps like Yahoo Finance, Google Finance or Morningstar let you track Tesla’s stock alongside the rest of your portfolio.
- Financial analysis platforms: Sites like Seeking Alpha, MarketWatch and The Motley Fool offer in-depth financial news and expert takes on Tesla and the EV market as a whole.
- Stock chart tools: For the more technical-minded, platforms like TradingView or Thinkorswim can help you analyze Tesla’s price trends and technical indicators. They’re great for spotting patterns that might inform your next move.
- Tesla-specific news: Keeping tabs on company updates is key. Bookmark sources like CNBC, Reuters or even Tesla’s Investor Relations Page for official announcements and breaking news.
Using these tools, you can evaluate how Tesla stacks up against your investment goals and adjust your strategy when needed.
Get expert insights from Motley Fool CanadaExit strategies for Tesla stock
Knowing when to sell is just as important as knowing when to buy. Here’s what to consider:
- Reaching financial goals: If Tesla has helped you hit your target returns or a major milestone, it might be time to lock in those gains.
- Changes in Tesla’s fundamentals: Keep an eye on Tesla’s financial performance, competitive position or growth prospects. If the story changes, your investment plan might need to as well.
- Market conditions: Broader trends matter too. A bearish market may convince you to hold tight, while a bullish run could be the perfect time to cash out.
Tax implications of selling Tesla stock
Let’s not forget taxes, even though I’m sure we'd like to, but the government is going to want a slice of your pie when you sell.
FAQs about investing in Tesla
Noel Moffatt
Writer
Noel Moffatt is a Canadian fintech expert with a passion for simplifying personal finance. Based in St. John’s, NL, he draws on his background in finance, SEO, and writing to deliver clear explanations and actionable advice. Noel is dedicated to equipping readers with the knowledge and tools they need to make informed financial decisions, striving to make personal finance more accessible and understandable through his in-depth articles and reviews.
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