How to Invest in Tesla Stock in 2025

Get step-by-step guidance on how to invest in Tesla stock and learn the ins and outs of this company.

By Matthew DiLallo – Updated May 1, 2025 at 9:11 PM | Fact-checked by Frank Bass

Key Points

Tesla produced 1.8 million EVs in 2024 and aims to continue increasing its manufacturing capacity by building more gigafactories.
In 2024, Tesla recorded $97.7 billion in revenue and produced $3.6 billion in free cash flow.
Tesla does not pay dividends; instead, it focuses on reinvesting for growth.

Tesla (TSLA +4.34%) is one of the world's best-known and most popular companies. A big driver of its popularity is the presence of outspoken co-founder and CEO Elon Musk.

The visionary Musk, who also leads SpaceX, The Boring Company, Neuralink, xAI, and X (formerly Twitter), created Tesla with one ambitious goal: to accelerate the advent of sustainable transport by bringing compelling mass-market electric cars to market as soon as possible.

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NASDAQ: TSLA

Tesla

Today's Change

(4.34%) $18.81

Current Price

$452.53

Key Data Points

Market Cap

$1442B

Day's Range

$438.72 - $460.15

52wk Range

$214.25 - $488.54

Volume

Avg Vol

88M

Gross Margin

17.01%

Dividend Yield

N/A

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Musk has certainly succeeded with that mission. Tesla produced almost 1.8 million electric vehicles (EVs) in 2024. In addition to producing EVs, Tesla develops, manufactures, and installs solar energy systems (Solar City), battery storage systems (Powerwall), and EV charging infrastructure (Superchargers). It has also developed other technologies, including autopilot, self-driving features, and artificial intelligence (AI).

The company is as ambitious as ever. Tesla aims to help lead the planet to sustainability. A key aspect of that strategy is to significantly ramp up its EV production. The company plans to build more gigafactories to manufacture its EVs, battery storage systems, and other sustainable energy products.

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These investments should help drive the company's revenue and profits, giving the stock the power to soar and making Tesla a compelling stock for investors to buy. Here's a step-by-step guide to buying Tesla's stock and some things to consider before you do.

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A Tesla car at a charging station. — Image source: Getty Images.

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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 involvement in DOGE could take away his focus on creating value for Tesla shareholders.
You don't think other automakers' growing adoption of Tesla's supercharger network will be a profit driver.

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Exchange-Traded Fund (ETF)

An exchange-traded fund, or ETF, allows investors to buy many stocks or bonds at once.

Among the most notable funds with a meaningful weighting to Tesla stock are:

Consumer Discretionary Select Sector SPDR Fund (XLY +1.44%): 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 early 2025 at a 14.8% allocation. This fund has a very low ETF expense ratio of 0.08%.
Simplify Volt TSLA Revolution ETF (TESL +5.70%): This fund aims to make a concentrated bet on disruptive companies it believes will dominate the autonomous driving sector. Tesla was its top holding in early 2025 with a 17% allocation, split between an 11% equity position and a 6% call option position. The fund has a relatively high expense ratio of 0.99%.
ARK Autonomous Technology & Robotics ETF (ARKQ +1.71%): 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 early 2025 at an 11.4% allocation. The ETF has a 0.75% expense ratio.

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Data source: Tesla and The Motley Fool.

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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 early 2025, Tesla stock was below that post-split level at roughly $250 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.

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