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The Cheapest Way to Buy Tesla (TSLA) Stock

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Written by Timothy Sykes
Reviewed by Matt Monaco Fact-checked by Bryce Tuohey
Updated 2/13/2025 16 min read

The cheapest way to buy Tesla (TSLA) stock is by learning how to execute your Tesla trade well. In this guide, I’ll tell you just how to do that!

Read this article because it provides clear, actionable steps to help you confidently purchase Tesla stocks while understanding the key factors influencing your investment.

I’ll answer the following questions:

  1. What are the benefits of buying Tesla stock?
  2. How do you research Tesla as an investment option?
  3. What is the easiest way to buy Tesla stock as a beginner?
  4. How much money do you need to start investing in Tesla stock?
  5. Which stock trading platforms allow you to purchase Tesla stock?
  6. What are the risks involved in buying Tesla stock?
  7. Should you buy Tesla stock directly or through an ETF?
  8. How can you monitor and manage your Tesla stock investments over time?

Let’s get to the content!

How to Buy Tesla Stock (NASDAQ: TSLA)

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Here’s a quick overview on how to buy Tesla stock…

Get my in-depth guide on how to buy TSLA stock HERE!

1. Get a Good Broker that Lets You Trade Tesla Stock

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This is the first step to buying any stock.

Choosing a broker isn’t the hardest thing. Here’s what I look for:

  • Low commissions and fees
  • Fast trade executions
  • Access to a wide range of stocks
  • Good customer service
  • A great trading platform

My personal pick for the last item is StocksToTrade. StocksToTrade integrates with most of the top brokers, and it’s hell on wheels for the things traders really care about.

It should be good for trading — I helped build it.

StocksToTrade has dynamic charts, a selection of pre-built stock screeners, awesome add-on alerts services, and more. It has everything I use to trade in one easy place.

Try StocksToTrade today — only $7 for a 14-day trial!

2. Determine Your Goals and Your Risk

Every trader wants to make money — but unless you have a clear idea of your goals you probably won’t achieve them.

Some traders are looking for short-term gains. Others want to invest for retirement.

If you’re an active trader, the 100% annual return Tesla has had for the past 10 years might not be enough for you. I look to make 5–10% per trade. Most of my trades take only minutes.

Many long-term traders and investors are looking for exactly the kind of chart Tesla has. Tesla stock is what is called a “growth stock.” That means it has a track record of growth, which is usually a good sign for future gains.

The flip side of this is volatility. Make sure you only risk what you can afford to lose.

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3. Do Your Research Before Buying Tesla Stock

There are several ways to research stocks.

First, there are indicators of the company’s value, like its sales figures, debt, and more complicated indicators like price-to-earnings (P/E) ratio. These indicators all fall under the category of fundamental analysis.

Short-term traders tend to look at charts more than fundamental indicators. Short-term price moves and volatility tend to relate more to market sentiment than the stock’s “real” value.

This is called technical analysis. It sounds complicated, but it doesn’t have to be.

I tell my students to pay attention to volume. This is one of the best indicators of an upcoming price move.

I also pay attention to news. The value of Tesla stock is heavily tied to future growth projections. News can really affect this perceived value.

4. Have a Trading Plan

After you’ve done your research, you should have an idea of what you should pay for Tesla stock, and how much you want to profit off of your trade.

Having a concrete trading plan is the best way to keep from overpaying for Tesla stock.

Write down your preferred entry, and how much of a win you’re targeting.

You also need to define your risk. If the stock price falls below your risk — that’s the point you have to cut your losses!

Without a trading plan, you’re just gambling. That’s a good way to lose your trade.

If all this sounds overwhelming, I get it. That’s exactly why I created my Trading Challenge.

In the Trading Challenge, I teach students all the things I had to learn for myself. Things like creating a good trading plan and executing it well.

You don’t have to go it alone. If you’re willing to put in the work, I’m willing to help you grow into the best trader you can be.

If you think you’re ready to give your all, apply to my Trading Challenge today.

5. Enter Your Tesla Stock Order

Trading is 90% preparation. Now that the hard part is over, it’s time to place your Tesla stock order.

Here’s the step-by-step:

  • Always use a buy-limit order. Market orders can execute for any price. This is not the cheapest way to buy Tesla stock — and it can be dangerous in stocks with less liquidity than Tesla.
  • Cut your losses quickly. As soon as you hit your risk you NEED to exit the trade. Your number-one job is to protect your account. If a trade isn’t going your way, there’s a poor chance that it will course-correct at the last moment.
  • Don’t get greedy. You always want to sell into strength. The way that I’ve made $7.9 million in my 20-plus years trading is by going for singles. That’s the best way to become profitable that I’ve seen in all my experience trading.

Both active traders and long-term investors need to time their entries well in order to be trade TSLA stock at a profit. Get my read on whether Tesla is a good buy here!

Set a Budget for Your Tesla Stock Purchase

Before buying Tesla stock, it’s important to set a clear budget that aligns with your overall investment strategy. The share price of Tesla (TSLA) has fluctuated significantly over the years, often reflecting the company’s performance, product launches, and market trends. If you’re considering buying TSLA shares, review your personal finances and determine how much you’re willing to risk. One of the most critical lessons I teach traders is to trade with money they can afford to lose. The same logic applies to any investment. Keep your core expenses and emergency savings separate, and only allocate funds you’re comfortable putting into a volatile stock like Tesla.

It’s also worth noting that you don’t have to buy an entire share of Tesla stock. Many brokerage accounts now allow fractional share purchases, letting investors own a portion of a share for a smaller amount of cash. This can be particularly useful if Tesla’s market price is out of your budget. Trading platforms like Robinhood, Fidelity, and others often support fractional shares, offering beginners an affordable way to gain exposure to TSLA without overcommitting. However, always account for transaction fees and any tools the broker-dealer provides, as these can impact your overall cost.

Budgeting isn’t just about what you can spend—it’s about being strategic. Start by analyzing Tesla’s performance over time, including key events like earnings reports or product releases. These details can help you better assess potential returns or risks. Remember, TSLA’s volatility can lead to sudden price spikes, so it’s essential to focus on protecting your cash and avoiding emotional decisions. Whether you’re looking for short-term trading opportunities or long-term investment growth, establishing a well-thought-out budget is your first step toward effective risk management.

Decide When to Buy Tesla Stock

Timing is everything when it comes to buying stocks, and Tesla is no exception. TSLA’s share price often reacts sharply to business updates, product launches, or major announcements from its CEO, Elon Musk. For example, if the company announces strong results for a new product, the stock price might spike, creating an opportunity for short-term profits. Conversely, market uncertainty, negative earnings, or regulatory challenges could lead to temporary declines. To decide when to buy, follow Tesla’s market price trends and monitor key events that might trigger price action.

A useful strategy for beginners is to dollar-cost average into the stock. Instead of investing all your cash at once, divide your budget into smaller amounts and purchase Tesla shares over several weeks or months. This strategy reduces the risk of buying at a peak price and allows you to average your cost over time. Many brokerage accounts and trading platforms offer automated tools to help you execute this approach. While it doesn’t guarantee profits, it’s a solid method for managing risk, especially in a flat activity environment or during periods of high volatility.

Keep in mind that external factors like broader equity market trends, macroeconomic events, or even changes in interest rates can influence Tesla’s stock price. During earnings season or major industry news, the share price may move dramatically within a single trading day. As I tell my students, preparation is key. Use the information available to you—whether it’s recommendations from financial articles, real-time content from trading platforms, or historical performance data—to make an informed decision. Don’t chase hype; instead, rely on a strategy that keeps emotions out of the equation.

Should You Buy Tesla Stock?

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You should buy Tesla stock if it fits your trading goals, and your research indicates that there’s an opportunity.

Through much of 2021 and 2022, Tesla stock was near all-time highs. There was a lot of anticipation about its 3-for-1 split in August of 2022… which led to a slide of more than 60% to end the year.

TSLA’s value is once again at all-time highs in 2025. Elon Musk is once again the world’s richest man. With Tesla sales rising in China, there may be more potential to unlock here.

There are other growth stock options out there! Check out our guides on the cheapest way to buy Amazon (AMZN) stock, Walmart (WMT) stock, and Google (GOOGL) stock.

Pros of Buying TSLA Stock

There are a number of advantages to buying Tesla stock.

  • Electric Vehicles (EV) Sector Leader: Tesla is the leader of one of the fastest growing sectors out there.
  • Elon Musk: I’ve joked that we should have an alert service based around Musk’s tweets. He’s tweeting a bit more often these days — but when Musk says or does something important the market tends to respond.
  • Clean Energy Leader: Tesla is also building infrastructure for its cars. That infrastructure has gotten so good that Ford is now using it.

Cons to Buying TSLA Stock

Here are the cons you should weigh when making this decision…

  • Crazy Volatility: Tesla is awesome because it moves like a penny stock. But if you’re the kind of investor who doesn’t use stop-losses or set price alerts, you may be in for some rude surprises.
  • Potentially Inflated Price: Tesla needs to deliver on its promise for its stock to be worth anywhere near the price it currently commands. TSLA’s P/E ratio is over 113, as of January 2025. Ford’s is just over 11.5.
  • Growing Competition: Tesla’s EV head start is falling away, with traditional automakers GM, Ford, and Volkswagen and newer players like Rivian and Lucid all growing their market share.

Other EV stocks are worth looking into — you don’t want to be tied to any one stock or strategy. One of TSLA’s biggest strengths is that it acts like a penny stock — learn about top EV penny stocks here!

Frequently Asked Questions

Does Tesla Stock Pay a Dividend?

Tesla does not currently pay a dividend, and it’s unlikely to introduce one in the near future. The company’s focus is on reinvesting its profits into research and development, production capacity, and innovative features for its vehicles and energy products. Dividend-paying stocks are typically more stable and suited for income investors, but growth stocks like Tesla prioritize capital returns through share price appreciation instead.

For traders, this lack of dividends doesn’t necessarily mean Tesla is a bad investment. It simply highlights that Tesla operates as a growth-oriented business, with a focus on achieving long-term results. Investors looking for income might turn to ETFs or funds that hold a diversified portfolio of dividend-paying securities. For those interested in TSLA’s potential, it’s crucial to weigh the benefits of growth against the absence of regular cash payouts.

Is Tesla Profitable?

Tesla has achieved profitability in recent years, a milestone that has drawn the attention of individual investors and institutional shareholders alike. The company’s earnings growth rate has been fueled by strong vehicle sales, particularly in international markets, as well as the expansion of its energy and software businesses. Key features like the introduction of new vehicle models and improvements in manufacturing margins have also bolstered Tesla’s financial performance.

However, Tesla’s profitability can fluctuate depending on global economic trends, supply chain challenges, or the cost of raw materials. Like many growth stocks in the technology and automotive industries, its profits are often reinvested to fuel expansion. For traders, this underscores the importance of staying updated on Tesla’s near-term business trends and results. Short-term market price movements often reflect these details, presenting trading opportunities around earnings announcements or other key updates.

Will Tesla Stock Split?

Tesla has executed stock splits in the past, most recently in 2022. These splits were intended to make the stock more accessible to smaller investors by decreasing the price per share without changing the company’s overall market capitalization. Whether Tesla will split its stock again depends on several factors, including share price performance and shareholder sentiment.

Stock splits can enhance liquidity and attract more retail traders, especially those using trading platforms that allow for fractional ownership. However, it’s important to note that a split doesn’t inherently change the company’s value—it’s more about increasing accessibility. Traders should focus on how Tesla performs around such events, as they often create short-term volatility. Timing your entry or exit during these periods can lead to significant opportunities if you’re prepared. Always use sound risk management strategies when trading around stock splits, as the market can react unpredictably.

Can You Buy Tesla Stock Through Bonds or Other Investments?

No, Tesla stock cannot be purchased directly through bonds, as these are entirely different types of securities. Bonds represent debt issued by companies or governments, while Tesla stock represents ownership in the company. However, Tesla has issued corporate bonds in the past as a means of raising capital. Investors looking for indirect exposure to Tesla without owning its stock outright might consider ETFs or funds that hold Tesla stock alongside other securities. These provide diversified exposure and can be purchased through an exchange or bank.

For those considering alternative investment options, it’s essential to seek proper investment advice and ensure compliance with financial regulations in your jurisdiction. Bonds typically offer fixed returns and lower risk compared to stocks, but they don’t benefit from the upside of Tesla’s share price growth. Before making any decisions, weigh the rights and responsibilities associated with different securities and determine what fits best with your investment strategy.

Is Buying Tesla Stock Legal in All Jurisdictions?

Yes, buying Tesla stock is generally legal in most jurisdictions where stock exchanges operate, but it’s important to ensure compliance with local laws and regulations. Tesla is listed on the NASDAQ exchange, so it can be purchased through authorized brokerage accounts that have the proper licensing in your country. However, some regions impose restrictions on certain investments or require investors to meet specific legal criteria before participating in equity markets.

If you’re investing from outside the United States, confirm that your brokerage or bank has the rights to facilitate cross-border transactions. In addition, always verify whether your jurisdiction has specific solicitation or regulation requirements for foreign investments. Staying informed about these details not only protects your capital but also ensures that you avoid legal complications. It’s always wise to consult a financial advisor or legal expert for tailored advice based on your location and financial goals.


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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”