Tesla stock in the UK?

[Avendit]

Given that there seems to be a huge sale on stocks just now, is there an easy way to buy a share or 2 in Tesla from the UK? Any decent platforms etc? What costs should a small scale investor expect?

Don't worry, not going to be throwing around loads of cash that should be in a fund etc, just thinking of a couple of shares while they are going cheap...

cheers!

 

[MrBadger]

They are not cheap. Under $200 is cheap.

I had to sign a tax certificate (?) before I could buy US stock. It was pretty quick, but don't expect to just hit 'buy'.

You will be hit with dealing (often fixed, maybe £12 or so for online) charge plus % fx costs - I can't remember the rate. For small number of shares, bearing in mind how expensive they are, its potentially a disproportionately large amount especially when you have to do it all again in reverse to realise any profit/loss.

Sounds like you will need not be investing enough to worry about a S&S ISA but don't forget if you do think you may need its benefits in future.

 

[M3PMike]

For low commission/user friendliness a good place to start is trading212.

I would recommend being very cautious with any investments at the moment unless you're in it for the long run.

Yes the tesla stocks are "going cheap" compared to the previous peak however they are massively overbought (still).

Don't invest on emotion/an attachment to a company and do plenty of research into their financials and read their valuations from credible market analysts before parting with your ££ otherwise it may be the last time you see it!

Goes without saying that your capital is at risk...

 

[Durzel]

Bear in mind that Sterling is taking a beating too, so you're going to suffer on the FX conversion there.

Also unless your appetite for risk is big now might not be the best time to buy. As the old maxim goes - don't try to catch a falling knife.

If/when FTSE ends up down at 2008 levels, which is a distinct possibility, that would be the time imo to be looking into futures etc. Things are going to get much worse with Covid-19 before they get better.

 

[AnthonyLR]

Maybe Hargreaves Lansdowne?

https://www.hl.co.uk/investment-services

 

[Plagued]

There's quite a few "free" trading providers now offering the same service that robinhood started up in the US.
I use Freetrade, and you CAN just buy US stocks with the click of a button and it DOES cost £0 to do so ...
You complete the W-8BEN form online just by clicking yes to a couple of questions then you can buy stocks for free if you're not fussed about the timing of the purchase/sale (effectively your order gets queued and just happens at some point in the next trading day) you can pay £1 to have it at the front of the queue.
If you're just having a play then an investment ISA is a good choice, it's tax free up to 20k. However this is how they make their money it's £3 a month for them to manage your ISA
Also it's not true that you have to buy shares in whole units, you can with some approved providers buy fractional shares. (I believe freetrade do but I've not bought any) so you could buy 50% of a single share if you wanted.
Tesla is currently at $635 after a fairly hefty drop from over $900 a month ago, so there's a risk to buying at the moment, if you're playing the long game then maybe it'll hit back over 900 in the coming months/years, but right now it could easily drop another $100 in a matter of days as the corona virus continues to impact the stock market.

 

[AnthonyLR]

Prompted by your question I just set myself up on Hargreaves Lansdown and bought a share in Tesla (I know, steady on, one whole share, but these things are expensive!) It was easy and it was also straightforward to fill out the US W-8BEN form regarding tax on dividends - I just had to answer around 5 easy questions about me not being a US citizen and that form lasts 3 years.

So I am finally a shareholder in Tesla and Elon better spend less time goofing around on Twitter and meme review as a consequence.

 

[Mr Miserable]

I'm no financial adviser however to me it would be foolish if you buy Tesla shares and not keep them in an ISA.

 

[JCremonini]

I'm no financial adviser however to me it would be foolish if you buy Tesla shares and not keep them in an ISA.

Generally agree , though if you buy 1 it’s unlikely you’ll be selling it over the CGT allowance

 

[LongRanger]

I use the Llloyds share dealing service, it's OK and good access to loads of markets - offers limit buy/sell on International markets which HL platform doesn't

 

[Torokruger]

I know its sad to cash in on the Covid19 stock/shares depression but im looking to buy maybe 5 to 8k in Tesla shares . Mr Miserable I bow to your knowledge and am asking should I go through this H&L ISA route whilst the share price is low.
I know you cant be 100% (im not that daft) but have been looking to buy shares in Tesla ( or even SpaceX or the Boring company when I get a chance)

 

[AnthonyLR]

I know its sad to cash in on the Covid19 stock/shares depression but im looking to buy maybe 5 to 8k in Tesla shares . Mr Miserable I bow to your knowledge and am asking should I go through this H&L ISA route whilst the share price is low.
I know you cant be 100% (im not that daft) but have been looking to buy shares in Tesla ( or even SpaceX or the Boring company when I get a chance)

There is no harm using the ISA wrapper. As someone above mentioned you have an annual capital gains tax allowance which (depending on your personal circumstances) you are unlikely to utilise, but there is no harm to use your annual £20k ISA allowance.

 

[M3PMike]

looking to buy shares in Tesla ( or even SpaceX or the Boring company when I get a chance)

SpaceX and The Boring Company aren't publicly traded so unless you have 7figures £+ and approach Elon himself these aren't an investment option.

There are plenty of strong companies who have stood the test of time, including multiple market dips, out there that can be bought at a bargain at the moment.

In my opinion (even though I'm a Tesla/Elon nut ) Tesla would need to be cheaper for me to invest any significant funds into.

Stocks/shares have become more and more available to the general public, however unless you like a gamble you need to do some research.

For novices who don't do research, the best way to get £1k is to start with £2k!

 

[Torokruger]

SpaceX and The Boring Company aren't publicly traded so unless you have 7figures £+ and approach Elon himself these aren't an investment option.

There are plenty of strong companies who have stood the test of time, including multiple market dips, out there that can be bought at a bargain at the moment.

In my opinion (even though I'm a Tesla/Elon nut ) Tesla would need to be cheaper for me to invest any significant funds into.

Stocks/shares have become more and more available to the general public, however unless you like a gamble you need to do some research.

For novices who don't do research, the best way to get £1k is to start with £2k!

Totally agree if you are into the stocks and shares and can look into the workings of the market there are probably many other better investments around, and am aware that Space X and Boring Co. are not available yet. My feeling are Im investing into something I believe in (maybe foolish) but arent all stock.share buying a gamble.
Thank goodness I have the funds to invest into this and hope that they do really well.

Thank you for your advice though.

 

[Rooster6655]

I know its sad to cash in on the Covid19 stock/shares depression but im looking to buy maybe 5 to 8k in Tesla shares . Mr Miserable I bow to your knowledge and am asking should I go through this H&L ISA route whilst the share price is low.
I know you cant be 100% (im not that daft) but have been looking to buy shares in Tesla ( or even SpaceX or the Boring company when I get a chance)

I can recommend Interactive Investor (ii)as their interface is very easy to use and you can sign all necessary forms online to trade in the US stocks.

You can setup and ISA or a standard trading account easily.

The main thing to consider with buying in USD is that with an ISA you are not allowed to keep a cash balance of anything apart from GBP so when you buy/sell a USD stock there will be FX to pay.

If you are planning to buy 5-8k in stocks then I'd use an ISA if you are planning to hold them for years alternatively if you will be trading then a standard trading account maybe fine to save in fx costs (About 1-2% each trade)

ii don't charge ongoing fees for management like some they have a fixed monthly subscription which starts at £9.99 but you get back £7.99 to use as trading credit and for £19.99 a month you get all trades half price, so works out a lot better than other alternatives.

I'm not recommending buying Tesla but you should also consider buying a fund that includes Tesla so you have less exposure to 1 stock, if its in GBP then its easier as you won't paying FX costs.

Baillie Gifford offer several funds IN GBP that you can buy through most stock brokers, a couple to consider would be American Fund, Long term global growth and Scottish Mortgage Investment trust (SMT)

 

[AnthonyLR]

I can recommend Interactive Investor (ii)as their interface is very easy to use and you can sign all necessary forms online to trade in the US stocks.

You can setup and ISA or a standard trading account easily.

The main thing to consider with buying in USD is that with an ISA you are not allowed to keep a cash balance of anything apart from GBP so when you buy/sell a USD stock there will be FX to pay.

If you are planning to buy 5-8k in stocks then I'd use an ISA if you are planning to hold them for years alternatively if you will be trading then a standard trading account maybe fine to save in fx costs (About 1-2% each trade)

ii don't charge ongoing fees for management like some they have a fixed monthly subscription which starts at £9.99 but you get back £7.99 to use as trading credit and for £19.99 a month you get all trades half price, so works out a lot better than other alternatives.

I'm not recommending buying Tesla but you should also consider buying a fund that includes Tesla so you have less exposure to 1 stock, if its in GBP then its easier as you won't paying FX costs.

Baillie Gifford offer several funds IN GBP that you can buy through most stock brokers, a couple to consider would be American Fund, Long term global growth and Scottish Mortgage Investment trust (SMT)

Interactive investor is expensive if you only do a few trades a year

 

[Torokruger]

The thing is im looking to buy these shares then leave them......not checking them all the time and hopefully in years to come pass them on to my son as a helping hand.

 

[Plagued]

Tesla is a gamble, it's a very volatile company regarding growth. I wouldn't advise putting any money in that you can't afford to lose. Having said that I'm in for the gamble, I'm lucky that I got in fairly early so I'm still way up now even after a 30+% crash, and I'm in for the long run. If Tesla crack self drive or some incredible battery tech then I'm laughing, the company's value will be immense. If they struggle and competitors catch up then their share price will return to something realistic, which would mean a loss for people buying now. I'm tempted to buy some more shares to cash in on the Corona virus impact. The entire market is down and will recover at some point.

 

[M3PMike]

Anyone who thinks Tesla is still going to be head and shoulders above the "legacy" car brands in 10 (or even 5) years time may be blinded by the excitement/personal attachment to the brand.

Tesla is new in the industry and and an exciting an innovative auto maker. People, including myself, like to feel a part of the brand/cause. However, compare the share price to other auto makers. Many of which who's financials make Tesla's share price look like its been set to ludicrous mode with 1% charge remaining. The profit just isn't there yet to justify the share price.

There are literally dozens of companies hot on their heels in regards to full self driving, EV's and battery tech. The majority of which have much more enviable balance sheets and bigger R&D budgets.

Once said tech is incorporated into existing car brands, the playing field will be levelled and the Tesla share price will come down to be more comparable to other automakers.

Just my $0.02

 

[westrow3]

Trading 212 is my recommendation.