How to buy Tesla stock

Buying Tesla stock takes about ten minutes once your account is open. The steps are the same at almost every broker; what matters more is how much you buy, at what price, and whether you’re ready for how much it moves.

How to buy Tesla stock, step by step

1. Choose a broker. Any US online broker sells Tesla, usually with no commission: Fidelity, Charles Schwab, Vanguard, E*TRADE, Interactive Brokers, Robinhood, Webull, SoFi and others. Choose on safety (SIPC membership in the US), the app, and extras like fractional shares. Outside the US, many local brokers offer US shares; check what they charge to convert your currency.
2. Pick the account type. A regular taxable account, or a retirement account like an IRA if you’re investing for the long term and want the tax benefits.
3. Open and verify it. You’ll need ID, your address and, in the US, a Social Security number.
4. Add money, by bank transfer or debit card. Transfers can take a day or two to settle.
5. Search for TSLA, Tesla’s ticker on the Nasdaq.
6. Choose how much: a number of shares, or a dollar amount if your broker sells fractional shares.
7. Choose the order type (below), review it, and submit.

Market or limit order?

• Market order: buys right away at the best price available. Simple, but in a fast market you can pay more than the price you saw.
• Limit order: buys only at your price or lower. If Tesla never comes down to it, nothing happens. Before and after regular hours, most brokers accept only limit orders.

When to buy

The regular session runs 9:30 AM to 4:00 PM ET on weekdays. The first and last half hour are the busiest and the most jumpy; outside regular hours, prices can gap and the spread is wider. Tesla has moved about 8% on average the day after its last eight earnings reports, so buying just before one is a bet on the result: see TSLA stock earnings. Many long-term buyers spread their money over several months instead of picking one day, which smooths out the swings.

Costs and taxes

• Commission: usually $0 at US brokers; some international brokers charge a fee and a currency conversion margin.
• The spread: the small gap between the buy and sell price, a few cents for Tesla during regular hours.
• Taxes in the US: sell after more than a year and gains are taxed at long-term rates (0%, 15% or 20% for most people); sooner, at your income tax rate. No dividends to tax: Tesla doesn’t pay one.

Other ways to own Tesla

• Index funds: if you own an S&P 500 or Nasdaq 100 fund, you already own some Tesla, along with hundreds of other companies.
• TSLL: a fund that aims for twice Tesla’s daily move. It’s built for short trades, not holding: see TSLL stock.
• Options: contracts on Tesla’s price that can multiply gains and losses. See TSLA implied volatility before you try them.

Before you buy

Tesla has fallen more than 60% in a year before (2022) and risen more than 700% in one (2020). Decide how much you could watch drop by half without selling in a panic, and what would make you sell. Our guide should I buy Tesla stock? walks through the questions.