Introduction
Tesla has become a global leader in electric cars (EVs), and Indian investors are taking notice. With the firm’s superior technology, strong market position, and positive stock performance, the majority of investors wish to invest in Tesla shares (TSLA) in their portfolios.
Tesla is traded on NASDAQ, and Indian investors must utilize official international investment platforms to buy its stocks. This guide explains investing in Tesla in India, such as regulations, brokerage platforms, and risk management.
Learning the Basics of Investing in US Stocks from India
Why invest in stocks of USA?
Legal and Regulatory Framework
RBI Regulations: Reserve Bank of India (RBI) allows an individual to invest up to $250,000 annually under Liberalized Remittance Scheme (LRS).
- Taxation: Tesla stock profit is taxed as capital gains in India.
- Short-term profits (less than 24 months): Taxed based on income level.
- Long-term gains (over 24 months): Treated at 20% with indexation advantage.
Choosing a Brokerage Platform
Several platforms enable Indian investors to buy Tesla stock directly. Here are some of the best options:
| Broker | Fees | Features |
|---|---|---|
| Vested Finance | Zero brokerage | Fractional shares, easy funding |
| Stockal | $3 per transaction | Thematic investing, global stocks |
| Interactive Brokers | $0.005 per share | Advanced trading tools |
Opening an account
To start investing, do the following:
- Open an account on the chosen brokerage website.
- KYC done (PAN, Aadhaar, bank proof needed).
- Finance the account by direct deposit or wire transfer.
Financing Your Brokerage Account
Indian investors must transfer funds from an Indian bank account to the US brokerage account.
Ways to Send Money:
How to Buy Tesla Stock in India
Once your brokerage account is funded, follow these steps to purchase Tesla stock:
Step 1: Search for Tesla (TSLA) on the Brokerage Platform.
- Tesla’s stock symbol is TSLA.
- Notice the current price, past performance, and most important figures.
Step 2: Analyze Key Stock Metrics
| Metric | Value (as of March 2025) |
|---|---|
| Market Cap | $847.4 billion |
| EPS | $2.03 |
| P/E Ratio | 129.78 |
| 52-Week High | $488.54 |
| 52-Week Low | $138.80 |
Step 3: Place a Buy Order
Choose the appropriate order type:
- Market Order: Buy Tesla shares at the current price.
- Limit Order: Set a maximum price at which you’re willing to buy.
- Fractional Investing: Invest a fixed amount (e.g., $100) instead of buying whole shares.
Managing Your Tesla Investment
Once you buy Tesla shares, active tracking is required.
Major Plans:
- Portfolio Review: Periodically review stock performance.
- Stop-Loss Orders: Establish automated selling limits to limit potential losses.
- Profit Booking: Consider selling when you have achieved your desired returns.
- Stock Dividends & Splits: Tesla does not pay dividends but has performed stock splits in the past.
Risks and Considerations
- Market Volatility: Tesla shares are extremely volatile based on factors such as EV demand, manufacturing, and what Elon Musk decides.
- Foreign Exchange Risk: INR-USD movements impact final returns.
- Regulatory Risks: Foreign investment government policies can alter.
Conclusion
Buying Tesla shares in India is easier now with global brokerage sites. With the proper plan, choosing a good broker, and understanding the risks and tax implications, Indian investors can capitalize on Tesla’s long-term prospects.
FAQs
Can I invest in Tesla stock from India?
Yes, Indian investors can buy Tesla stock using international brokerage platforms like Vested Finance, Stockal, or Interactive Brokers.
What is the minimum amount required to invest in Tesla?
You can start with as little as $1 through fractional investing.
How is Tesla stock taxed in India?
Short-term capital gains (<24 months): Taxed as per income slab.
Long-term capital gains (>24 months): Taxed at 20% with indexation.
Long-term capital gains (>24 months): Taxed at 20% with indexation.
What are the best alternatives to Tesla stock?
Some top alternatives include BYD, NIO, Rivian, and Lucid Motors, which are also prominent EV companies.
Does Tesla pay dividends?
No, Tesla does not currently pay dividends, as it reinvests profits into growth and innovation.
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