Tesla (TSLA +0.43%) is one of the most recognizable companies in the world and a leader in electric vehicles, energy storage, and clean technology. The company continues to scale production, adding new gigafactories and expanding into areas like artificial intelligence and autonomous driving -- growth that has helped fuel strong investor interest in the stock.
If you're considering becoming a Tesla shareholder, buying the stock is straightforward. Here’s a simple, step-by-step guide to help you get started, plus a few things to think about before you invest.
How to buy Tesla stock (TSLA)
To buy shares of Tesla, you need a brokerage account. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Fund your account: Transfer money so you’re ready to invest.
- Search for Tesla: Enter the ticker symbol TSLA into the search bar to bring up Tesla's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to Tesla.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected. And that's it! Quick and easy.
What does Tesla do?
Tesla is best known for its electric vehicles, but the company’s work extends far beyond car manufacturing. Its mission is to accelerate the world's shift to sustainable energy, and its business reflects that goal.
At its core, Tesla designs and produces electric vehicles (EVs). By mid-2025, the company had manufactured nearly 500,000 vehicles just in the second quarter, and it produced around 1.8 million EVs in 2024. To keep up with global demand, Tesla continues to build additional gigafactories -- large manufacturing facilities used to produce vehicles, batteries, and key components at scale.
Tesla also develops clean-energy products, including solar energy systems (SolarCity), battery storage systems (Powerwall), and EV charging infrastructure (Superchargers) that supports long-distance EV travel. Beyond energy and transportation, Tesla invests heavily in advanced technology like autopilot features, self-driving systems, robotics, and artificial intelligence (AI).
Taken together, Tesla isn’t just a car company -- it's a technology and energy business working across transportation, software, and renewable power. That broader focus is one reason many investors view Tesla as more than a traditional automaker.
Should you invest in Tesla?
Before buying shares in Tesla, you need to decide whether you should invest in Tesla stock. Here are some reasons to consider investing in Tesla:
- You want to invest in a company driven to accelerate the adoption of sustainable energy.
- You understand the risks of investing in Tesla, including the possibility that shares could lose value.
- You've thoroughly researched Tesla and understand how it makes money.
- You believe Tesla's strategy will increase its revenue and earnings at an above-average rate over the long term.
- You want to invest directly in stocks and have the time to follow the company.
- You don't need to earn dividend income.
- You are confident that Elon Musk can lead Tesla and handle all his other responsibilities.
- You plan to hold shares for the long term and ride out any near-term volatility.
- You think that more auto companies will follow Ford (F +0.11%), GM (GM +1.75%), and Rivian (RIVN -0.09%) in adopting Tesla's supercharging network, making it a growth driver for the company.
NASDAQ: TSLA
Key Data Points
Conversely, here are some reasons an investor might choose not to buy shares of Tesla:
- You need the money you plan to invest in Tesla stock to cover emergencies or for a major planned purchase within the next three to five years.
- You're concerned about the company's valuation.
- You're worried about the economy, your job, health issues within your family, or other pressing matters.
- You have yet to research Tesla and need to know what it does and how it makes money.
- You don't have the time to invest directly in stocks and follow Tesla.
- You're near retirement and need dividend income.
- You're concerned about the risk that shares could lose value.
- Elon Musk's values don't align with yours.
- You're worried that Musk's focus on his other business pursuits like X or his former involvement in DOGE could take away his focus or leave bad press for Tesla shareholders.
- You don't think other automakers' growing adoption of Tesla's supercharger network will be a profit driver.
Is Tesla profitable?
Earnings growth is one of the key drivers of a company's stock price over the long term.
Tesla is a very profitable company. The company reported $69.9 billion of revenue in Q3 2025 (up 12% YoY) and $1.4 billion of net income in the same time period. Its free-flow cash grew 46% to a staggering $4.8 billion. All of these things together, and Tesla is sitting in a strong financial position.
Tesla's strong profitability and cash flow should help power its stock over the long term. If the company can continue growing earnings faster than average, the share price should gain value in the coming years. However, shares could crash in value if Tesla hits an earnings growth speed bump.
Does Tesla pay a dividend?
As of 2025, Tesla didn't make dividend payments to its shareholders. The company retains 100% of its earnings and cash flow to reinvest in growing the business and its cash balance.
Given the company's continued heavy investments in expansion, it likely won't start paying dividends anytime soon. It's not an ideal stock for those who need to earn passive income for retirement.
How to invest in Tesla through ETFs
If you want to invest in Tesla but don’t want to buy individual shares, you can do it through an exchange-traded fund (ETF). ETFs let you own small pieces of many companies at once, including Tesla, which can make investing simpler and more diversified.
Because Tesla is one of the largest publicly traded companies by market capitalization, it's included in major market indexes like the S&P 500 and the Nasdaq Composite. That means many index funds and ETFs automatically hold Tesla stock as part of their portfolios.
According to ETF.com, 464 ETFs held a reported 408.6 million shares of Tesla as of late 2025. This gives investors a convenient way to gain exposure to the company without purchasing the stock directly.
Exchange-Traded Fund (ETF)
Among the most notable funds with a meaningful weighting to Tesla stock are:
- Consumer Discretionary Select Sector SPDR Fund (XLY -0.57%): This fund provides investors with exposure to the consumer discretionary sector of the S&P 500 index. Tesla was the ETF's second-largest holding in late 2025 at a 20.2% allocation. This fund has a very low ETF expense ratio of 0.08%.
- Simplify Volt TSLA Revolution ETF (TESL +0.00%): This fund aims to make a concentrated bet on disruptive companies it believes will dominate the autonomous driving sector. Tesla was its largest holding in late 2025 with a 52% allocation. The fund has a relatively high expense ratio of 0.97%.
- ARK Autonomous Technology & Robotics ETF (ARKQ +2.13%): The actively managed ETF by Cathie Wood focuses on investing in companies engaged in autonomous technology and robotics. Tesla was the fund's largest holding in late 2025 at an 12.42% allocation. The ETF has a 0.75% expense ratio.
Will Tesla stock split?
As of late 2025, Tesla did not have an upcoming stock split. However, the company has completed two stock splits in its history as a public company:
Type of Stock Split | Date | Pre-Split Price |
|---|---|---|
5-for-1 | August 2020 | Around $2,200 per share |
3-for-1 | August 2022 | Around $900 per share |
Each time the company split its stock, the share price decreased to a more accessible level for individual investors. The most recent split reduced the share price to about $300.
As of late 2025, Tesla stock rose above the post-split level at roughly $420 per share. It seems unlikely that Tesla will split its stock anytime soon. Given the historical trend, Tesla will likely wait until shares are closer to $1,000 before announcing another split.
The bottom line
Tesla is one of the most innovative companies in the world. It has a charismatic and controversial leader driving the company toward an ambitious mission. If he's successful, Tesla's stock price could ride higher, enriching its shareholders in the process.
Many people want to invest in Tesla stock. It's easy to buy shares. However, before you do, make sure you want to. It might not be for everyone.
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