How to buy Tesla stock with less than $100
Tesla is one of the hottest stocks on the market. Priced at over $600 in June 2021, it has risen a long way since its IPO in 2010 when it was valued at $17 per share.
This means, if you want to buy Tesla stock, you may not be able to afford the full price. Don’t worry.
Here we will show you how to buy Tesla stock cheap using 3 main ways to keep your costs low. This can work for Tesla and other major stocks too.
If you are interested in how to buy cheap shares, then keep reading and we will show you the way.
How to buy Tesla (TSLA) shares cheaper
Here is a closer and more detailed look into exactly how you can achieve this:
Tesla Fractional shares: Where to buy them?
The first way you can set about getting TSLA shares cheaper, is through fractional shares trading. This has become a hugely popular way to trade and made stock trading accessible to everyone.
It is not possible through all stockbrokers, but you can buy fractional shares from $50 at eToro, or from as little as $1 at both Trading 212, and Interactive Brokers though the minimum deposit at IB is $2,000 so it may be a better fit for more experienced traders. You can start with a minimum deposit of $200 at eToro though, and a rock bottom $1 minimum deposit at Trading 212.
Fractional shares trading with all of these brokers is typically commission-free and you can avail of many great features that they all offer. You can compare these using the chart below or Compare Trading 212 and eToro with our handy comparison tool.
| Tesla Fractional shares | Fractional shares From: | Fees* | Minimum Deposit | Link to the broker |
|---|---|---|---|---|
| eToro | $50 | $0 | $200 | Visit eToro (77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.) |
| Trading 212 | $1 | $0 | $1 | Visit Trading 212 (83% of retail CFD accounts lose money) |
| Interactive Brokers | $1 | From $1 | $2000 | Visit IB (74-89% of retail CFD accounts lose money) |
* Only for real stock trading
Tesla with Margin: Invest in Tesla with CFDs
The next way you can get involved in buying Tesla shares with less capital is to buy Tesla CFD shares. These are offered by almost all of the major forex brokers who cater for CFD stocks.
If you would like to know more details you should definitely check our best brokers offering CFD Stocks for a rundown of all the best.
It is worth remembering that CFDs are not the best for long-term investment since you will have to pay a daily overnight fee when holding the position. For long-term investing, fractional stocks are better.
Below you will see a selection of excellent CFD brokers and their fees and minimum requirements. You can also trade real stocks with eToro as well as CFDs. To analyze more features than you see below, you can eToro vs Pepperstone using our easy comparison tool.
| Tesla CFD shares | Minimum CFD Investment | Fees | Minimum Deposit | Link to the broker |
|---|---|---|---|---|
| eToro | $50 | 0.09% | $200 | Visit eToro (77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.) |
| Pepperstone | 20% share | $0.02 per share | $0 | Visit Pepperstone (74-89% of retail investor accounts lose money when trading CFDs) |
| Admiral Markets | 20% share | $0,20 per share | $100 | Visit AM (76% of retail CFD accounts lose money) |
ETF with exposure in Tesla: Where to find them
A third way to get into Tesla stock at a nice price is to choose an ETF that includes Tesla stock within it. There are many now focused on the EV sector so you can choose one of these that focus on this fast-growing area and company, or an Automotive/Tech ETF that is also likely to feature TSLA.
One good example as you will see in the chart below, is the XLY ETF. This can be traded at eToro completely commission-free. You can also invest in this ETF as real with the broker.
The chart below showcases this, and other ETFs you can choose from, though many more are also available.
| ETF | Issuer | Apple explosure | TER (total expense ratio) |
|---|---|---|---|
| VCAR | Simplify | ~ 15% | 1.09% |
| IYK | iShares | ~ 13% | 0.43% |
| XLY | SPDR | ~ 12% | 0.12% |
TSLA Real shares vs CFDs vs ETFs: Pros and Cons
In the table below, you can have a closer look at the key pros and cons we have highlighted when it comes to how you buy Tesla stock cheaper:
| Real TSLA Stocks | TSLA CFDs | TSLA ETFs | |
|---|---|---|---|
| Can you lose more than you invested? | No | Yes | Yes (with margin) |
| Spread | May be applied | May be applied | May be applied |
| Environment | Stock Market | Broker Market | Stock Market |
| Margin Trading (leverage) | No | Yes | May be offered |
| Overnight Fees | No | Yes | Yes (with margin) |
| Performance Fee | No | No | Yes |
Tesla stock split: When will it happen?
There has only been one Tesla stock split since the IPO. This took place in 2020 and the split ratio was 1:5. This means that for every share you had before, you now have 5 shares. These 5 shares would now be worth close to $3,000 as of June 2021.
| Splits | Date | Ratio | Shares owned |
|---|---|---|---|
| IPO Launch | 29/06/2010 | / | 1 |
| 1st Split | 31/08/2020 | 1:5 | 5 |
There has been no further Tesla stock splits announced, though the next one is unlikely to be soon given that they just had one in 2020.
Investing in Tesla – FAQs
How can I invest in Tesla stock?
In order to invest in Tesla, you need to open an account with a stockbroker, and deposit the amount of money needed to invest in Tesla shares as well as the minimum deposit required by the broker. The amount ranges from $1 to the full price of the Tesla Stock depending on the broker chosen. The minimum deposit also varies.
How much does it cost to buy stock in Tesla?
The cost depends on the price at any given time which is subject to change. As of June 2021 the price is around $600 per share. You can check the Tesla MorningStar page to keep updated on the current stock price.
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