How to buy Tesla shares in the UK

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Table of Contents

In this guide we show you how to buy Tesla shares in the UK. Tesla (Nasdaq: TSLA) is a publicly listed company with its shares listed on the Nasdaq stock exchange in the US. 

To buy Tesla shares in the UK you’ll need to use an investment platform that allows you to buy US shares.

In this guide we’ll take you through how to buy Tesla shares in the UK through a general investment account (GIA), an ISA, a SIPP and a LISA. We’ll also cover how to buy Tesla stock using fractional shares.

Table of Contents

What is Tesla?

Tesla has, in recent years, become one of the world’s best known companies and one of the most valuable companies in the world. 

It’s primarily known for manufacturing electric vehicles but investors are increasingly attracted to Tesla’s battery and renewable energy technology. 

As of April-24, Tesla is the world’s most valuable vehicle manufacturer and has a market capitalisation (the total value of all of its shares added together) of almost $500 billion. Tesla’s largest shareholder and CEO is Elon Musk, who is also the world’s richest man primarily due to his stake in Tesla.

Tesla is one of the ‘Magnificent 7’

As mentioned, Tesla is one of the most valuable companies in the world. It’s also part of the so-called ‘Magnificent 7’ group of technology giants which dominate the Nasdaq stock exchange.

The others are Google (its corporate name is Alphabet), Microsoft, Amazon, Meta (Facebook), Apple and Nvidia. Recently, the combined value of these 7 companies has accounted for around 29% of the total value of all stocks listed on the S&P 500.

Together, these companies were responsible for two-thirds of the S&P 500’s gains in 2023.

Tesla’s market ticker is TSLA and you’ll need to buy shares via the Nasdaq stock exchange if you want to own a piece of Tesla.

Tesla’s live share price

How to buy Tesla shares

The process to buy shares in Tesla in the UK is simple:

  1. Choose the best investment platform for you
  2. Open the right type of account with them based on your needs
  3. Search for Tesla (TSLA) on their platform and trade or buy Tesla shares

We recommend eToro as the best way to buy Tesla shares in the UK.

eToro

eToro is our top-rated investment app, it’s easy to use, has lots of innovative features and allows you to trade commission-free.

Capital at risk if you invest.

Here’s what the trading screen in eToro’s app looks like:

How to buy Tesla shares on the eToro trade screen
Tesla shares on the eToro trade screen (18th April-24)

Hit ‘Trade’ and you’re ready to buy Tesla shares with eToro.

You’ll also need to complete a W8-BEN form before you are able to buy Tesla shares, or any US stock, as a non-US person. More on this below.

This article has been reviewed by Alex, who is a Chartered Accountant and the founder of Generation Money. Alex is an experienced investor and spent more than a decade working in financial services, most recently as a Vice President at Barclays, so you’re in safe hands.

Buy Tesla shares in an investment account

If you want to set up an account and buy shares in Tesla quickly, then a general investment account (GIA), sometimes known as a trading account or just an investment account, is a great way to get started.

eToro

eToro is our top-rated investment app, it’s easy to use, has lots of innovative features and allows you to trade commission-free.

Capital at risk if you invest.

You can have as many GIAs as you like, and there are no contribution or withdrawal limits or penalties.

But, you may have to pay income tax, dividend tax or capital gains tax on any gains or income received through a GIA. There are a number of allowances before you’d have to pay tax, but it will come down to your individual circumstances.

Sometimes a GIA is referred to as a dealing account, usually by the more traditional stockbrokers. 

If you’d prefer a traditional stockbroker with modern features and customer support over the phone, then we recommend Interactive Investor.

Interactive Investor

With over 400,000 customers, Interactive Investor is one of the largest investment platforms in the UK.

It has over 40,000 shares and investments to choose from, fees which get cheaper the more you invest and one free trade per month. Its customer service is top-rated, too.

Buy Tesla shares in an ISA

An Individual Savings Account (ISA) is a government-approved product for saving and investing without paying tax. 

Through a Stocks and Shares ISA, you can invest in shares, bonds and funds without paying income tax, dividend tax and capital gains tax on your investments.

Whether you’re going to buy shares in Tesla or not, you should consider opening a Stocks and Shares ISA as a brilliant, tax-efficient way of building an investment portfolio. You can contribute up to £20,000 a year into a Stocks and Shares ISA.

We recommend Interactive Investor as the best Stocks and Shares ISA provider in the UK. It’s one of the largest investment platforms in the UK, has a huge range of investments and excellent customer support.

Interactive Investor

With over 400,000 customers, Interactive Investor is one of the largest investment platforms in the UK.

It has over 40,000 shares and investments to choose from, fees which get cheaper the more you invest and one free trade per month. Its customer service is top-rated, too.

Read more about ISAs in our expert-written guides:

Buy Tesla shares in a SIPP

Whether you already have a self-invested personal pension (SIPP) or want to open one, you may be thinking about adding Tesla shares to your pension portfolio. 

A SIPP is a great, tax-efficient method of saving for your retirement with lots of investment options and control over how you invest.

If you want to buy Tesla shares in a SIPP, then we recommended AJ Bell as our number one SIPP provider:

AJ Bell

For its huge range of investments and low pricing, AJ Bell is our top pick for best SIPP. 

There are thousands of shares, funds, ETFs, investments trusts and bonds to choose from. Plus, 4 ready-made portfolios if you don’t want to pick your own investments.

AJ Bell is also known for its excellent customer service and it has a Trustpilot rating of 4.8.

Capital at risk if you invest.

For a full range of SIPP providers and to see more on why we ranked AJ Bell top, read our guide to the best SIPP providers. You can also read our guide to the cheapest SIPP.

Note: you do not need to complete a W8-BEN form for investing in US shares when doing so in a SIPP. More on the W8-BEN form below.

Buy Tesla shares in a Lifetime ISA

Lifetime ISAs (often referred to as LISAs) are tax-free savings and investment accounts designed to be put towards your first home, or for retirement. 

You have to be an adult aged 40 or under to open a Lifetime ISA. You’re able to contribute up to £4,000 a year, which also counts towards your overall ISA annual allowance of £20,000. 

The great benefit of a LISA is that the government gives you a 25% bonus on top of your contributions. 

That can really add up over time so you should strongly consider opening a Lifetime ISA if you’re eligible. But, there are strict penalties for withdrawing money for any other reason than to buy a first home or for retirement.

Hargreaves Lansdown

Not all investment platforms offer a Lifetime ISA but Hargreaves Lansdown does and it’s one of the lowest cost out there.

There’s a huge range of investments, great customer support and no transfer or exit fees.

How to buy shares in Tesla using fractional shares

You don’t have to own a whole share in a company when investing these days. You can instead buy a fractional share, which is a proportion of a single share.

Many of the best investment apps in the UK allow you to do this. It’s particularly useful for buying shares in companies with high share prices, which can put them out of reach for new investors.

For example, you can buy 10% or 50% of a share instead of one whole share. This lowers the funds required to get exposure to high-priced shares. Currently, fractional shares are not available through ISA accounts – only general investment accounts (GIAs).

Tesla’s share price is quite high, especially for a beginner investor who doesn’t want to invest too much in a single stock. It has ranged between around $149 and $299 per share over the last year (as of April-24). 

If, for example, you’re starting a portfolio with $1,000 then one Tesla share could take up as much as 30% of your initial portfolio (based on the 52-week range above).

At Generation Money, we recommend that no single share makes up more than 5% of your portfolio value – certainly not more than 10%.

So, if you don’t want to buy a whole share in Tesla you can still buy a proportion of a share instead.

Our preferred platform for buying fractional shares is eToro, and you can buy fractional Tesla shares in the UK on their platform. 

eToro

eToro is our top-rated investment app, it’s easy to use, has lots of innovative features and allows you to trade commission-free.

Capital at risk if you invest.

Buy Tesla shares in a Junior ISA

A Junior ISA is a tax-efficient savings and investment account for children, which can only be opened by a child’s parent or guardian. 

Once opened, anyone is able to contribute, such as grandparents, and there’s an annual limit of £9,000. All gains and income generated within a Junior ISA is free from income tax, dividend tax and capital gains tax. 

To buy Tesla (TSLA) shares in a Junior ISA, you’ll need to first open a Junior ISA account for your child. We rate Hargreaves Lansdown as the best Stocks and Shares Junior ISA.

Hargreaves Lansdown

The UK’s largest retail investment platform, Hargreaves Lansdown, is our top pick for the best Junior Stocks And Shares ISA.

It charges no account or dealing fees at all – including on US shares – and has the widest range of investment options, as well as great customer service.

For more on Junior ISAs and why we rate HL as number one, read our full guide to the best Junior Stocks and Shares ISAs

How to buy Tesla shares in the UK

We’ve covered all of the main ways of how to buy Tesla shares in the UK, but as a non-US person, you must complete a form known as W8-BEN

All stocks listed in the US are subject to US financial rules and tax laws.

A W8-BEN form is required by the Internal Revenue Service (IRS, the US’s tax collector) for non-US persons who wish to deal in US-listed securities. The key purpose is tax.

The US sets a withholding tax of 30% on non-US persons for dividends and interest income received on US assets. By completing a W8-BEN form, this tax reduces to 15%. Regulated brokers and investment platforms in the UK all require you to complete this form before buying US shares.

All of the investment platforms and brokers in this guide will require you to complete a W8-BEN form before you can buy Tesla shares in the UK, unless you do so through a SIPP. Buying US shares within a SIPP is free from US withholding tax and does not usually require a W8-BEN form.

Here’s the prompt you’ll see when buying US stocks and ETFs with eToro.

eToro W8 BEN form

eToro makes it easy to complete the W8-BEN form through its app and its online platform.

Should you buy Tesla shares?

If you’re reading about how to buy Tesla shares, you’re probably already thinking ‘should I buy Tesla shares?’.

We cannot help you with that one, as we don’t give investment advice. It’s down to you to do your own research on Tesla stock and make your own investment decision. Although Tesla has seen huge growth in its share price in the last 10 years, past performance isn’t a reliable indicator of future performance.

The investment platforms we’ve covered above all have tools and resources available to help you with your research and analysis. We suggest you make use of them – especially the tons of features that eToro provides.

All of the investment platforms in this guide are regulated by the Financial Conduct Authority (FCA) and are part of the Financial Services Compensation Scheme (FSCS), protecting up to £85,000 of your money in the unlikely event that the platform goes out of business.

Note: to buy Tesla stock and to buy Tesla shares means essentially the same thing. Buying stock, or owning stock, tends to be more widely used in the USA than in the UK. 

Start investing

That covers how to buy Tesla shares in the UK (Nasdaq: TSLA). Let’s summarise.

First, decide which investment platform you want to use. Then decide which type of account you’d like to invest through (or you may already have an investment account). Make sure to complete a W8-BEN form, too.

Don’t forget that Tesla is listed on the Nasdaq stock exchange so you will need to open an account with an investment platform that offers US shares trading. We recommend eToro.

Finally, search for Tesla (ticker: TSLA) on your chosen investment platform, select how many shares you want to invest in and hit ‘buy’.

Here’s a final reminder of our top picks of each type of account:

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Disclaimer: This article should not be considered financial advice. We do not recommend that you buy Tesla shares, nor do we recommend that you do not buy Tesla shares. No view is held or given on the present or future value of any investment mentioned in this article or elsewhere on our site. You should do your own research and make your own investment decisions. Investments may rise or fall in value; your capital is at risk if you invest.

Any company information or statistics mentioned were correct at the date of publication but may have changed since then.

Buy Tesla shares in the UK

We reccommend eToro, it’s commission-free and has thousands of shares.
Capital at risk if you invest. FCA regulated and FSCS protected.

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Get £200 cashback with Interactive Investor

Get £200 cashback when opening and investing in a SIPP, or transferring a SIPP. Terms apply.

Capital at risk if you invest. Interactive Investor is regulated by the FCA and has FSCS protection.

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