How to Buy Tesla (TSLA) Shares in Australia
Last Updated on 27 January 2024 by Ryan Oldnall
If you’re an investor looking to buy Tesla (TSLA) shares in Australia, this guide will provide you with all the information you need. Tesla share price has been on a roller coaster ride since the start of Covid times. Tesla’s Share price (TSLA) grew 1329.26% between 6/1/2020 and its highest valuation on 1/11/2021.
Tesla was founded in 2003 and made famous by their founder and CEO, Elon Musk.
It is possible to buy Tesla (TSLA) shares in Australia using the right brokerage account which allows the purchasing of shares listed on foreign exchanges.
Tesla was first listed on the NASDAQ on June 29, 2010. Tesla has become a household name in the electric car industry and has expanded its business to include artificial intelligence (AI), solar and household batteries.
Tesla Share Growth in 2023
2023 witnessed remarkable progress for Tesla in terms of share growth. At the start of the year, Tesla’s shares were valued at a modest $108.10 USD. However, throughout the year, the company experienced a substantial increase of 144.78%.
When comparing Tesla’s share growth to that of its industry peers, it becomes evident that Tesla has surpassed the performance of many others. This article discusses Are Tesla Shares a Good Buy in 2023
Being listed on the NASDAQ with the ticker symbol TSLA, Tesla stock played a significant role in driving the impressive year-to-date growth rate of 31.23% for the NASDAQ Composite Index. Notably, Tesla, NVIDIA, and Meta achieved triple-digit growth since the beginning of the year.
These technology stocks listed on NASDAQ emerged as the primary catalysts for growth in 2023, rebounding from a decline experienced by many in 2022.
How to Buy Tesla Shares
Investing in Tesla (,TSLA) shares can be a profitable venture for Australian investors like any other stock. To get started, you’ll need to open a brokerage account that allows you to buy and sell shares, ETFs, bonds, and mutual funds.
Modern brokerage accounts offer convenient access to global markets with lower fees, making it easier than ever for Australian investors to participate.
When choosing a brokerage account, consider the following factors:
Choosing the right brokerage account may seem overwhelming, considering the various options available. Here are some key factors to consider:
Fees: Brokers charge fees for executing trades on the stock exchange. It’s important to view share investing as a long-term opportunity since stock prices can fluctuate significantly within a day, month, or year. These fees are usually incurred when selling or buying shares on a transactional basis.
Forex Exchange Fees: Converting Australian dollars to US dollars is necessary for buying US shares, and this process may involve foreign exchange fees. However, not all brokers advertise these fees upfront, so be sure to check with the broker.
Monthly Fees: Some brokers charge a monthly fee, often a fixed dollar amount. These subscription-based models are not universal but may come with brokers that provide extensive information and features beyond the needs of the average investor. It is worth considering what features you require when investing.
Website and App Functionality: Brokers offer different levels of functionality in their websites and apps. Consider your preferences and needs when evaluating the importance of features like share charts and more specialised market information.
Trades Minimums: Different brokers operate in various markets, resulting in varying fees and trade minimums. Trade minimums usually denote the minimum dollar value required for each trade. This may be for example $1,000 or $500 depending on the stock exchange.
Access to Live Market Data and Research: Some brokerage platforms offer live market data, including current price movements, buy and sell volumes, and historical trading data. Certain platforms also provide research tools, while others lack these features.
Options with Order Types: Brokers offer different options for order types, including quantity-based purchases (shares or dollar value) and various instruction types like “limit price,” “At Market,” and “conditional order.” Expiry options may include “Good till cancelled,” “Day only,” and specific dates.
Ways to Buying Tesla Shares in Australia
Buying US shares in Australia follows a process similar to purchasing Australian listed shares. However, there are a few notable differences and considerations:
Tax Implications: US shares are domiciled outside Australia, resulting in additional tax considerations. Unlike Australian shares, US stocks do not pay a franking credit, as they are not subject to Australia’s dividend imputation system, which minimizes double taxation.
W8BEN Form: Investing in the US requires additional documentation, such as the W8BEN form. This form is necessary for investors residing outside the US and enables Australian investors to benefit from the special tax status between Australia and the US.
Tax Reduction: Failing to complete the W8BEN form results in a 30% tax on shares sold and a 30% withholding tax on dividends. However, completing the form reduces the American tax component to 15%. It’s crucial to fill out the form accurately and seek investment or financial advice if needed.
By following these steps and considering the relevant factors, you can buy Tesla stocks and potentially benefit from their performance on the stock market.
Tesla Shares in ETFs
In addition to buying individual Tesla shares, you can also consider purchasing Tesla shares indirectly through Australian ETFs (Exchange-Traded Funds).
ETFs provide diversified exposure to a wider market and can be an alternative investment option to gainer greater exposure to a basket of stocks. Some well-known Australian ETFs with exposure to Tesla include:
ETFs domiciled in Australia offer the benefit of being locally regulated and still provide investors with exposure to Tesla shares.
The Promising Future of Tesla Shares in 2023
In summary, Tesla’s stock performance has been impressive, but it’s important to approach any investment as a long-term strategy.
With foreign markets accessible to Australian investors, understanding the tax implications is crucial. Seek financial advice and consult a qualified accountant to make informed decisions.
This article is for informational purposes only and does not constitute as an endorsement or recommendation to purchase any specific product.
