Buy Tesla Shares (TSLA) from New Zealand - The Definitive Guide
We outline the most cost-effective, secure and user-friendly platforms for anyone wanting to buy Tesla shares
Updated 19 May 2021
The Tesla share price performed strongly in 2020, and the company continues to innovate and grow its market share among car manufacturers. According to our conversations with Hatch, Sharesies and Stake, it was one of the top twenty traded shares in 2020.
Know this first: If you buy Tesla shares, all holdings are in USD. This means that when the NZD/USD exchange rate moves, your investment's NZD value will go up and down. For example, the NZD to USD rate moving from 0.70 to 0.71 makes a USD 10,000 investment reduce its NZD value by about NZD 200 (as the USD now buys less NZD). For this reason, we believe the most profitable investors buying Tesla shares will either hold for the long-term or use Tesla shares as part of a trading strategy.
Our guide covers:
Advertising Disclosure: We may receive a commission if you join a share investing platform, but any such arrangement does not influence our shortlist. We have comprehensively reviewed and compared all platforms extensively (please see our investing section) to ensure you can compare and decide with confidence.
The Tesla share price performed strongly in 2020, and the company continues to innovate and grow its market share among car manufacturers. According to our conversations with Hatch, Sharesies and Stake, it was one of the top twenty traded shares in 2020.
Know this first: If you buy Tesla shares, all holdings are in USD. This means that when the NZD/USD exchange rate moves, your investment's NZD value will go up and down. For example, the NZD to USD rate moving from 0.70 to 0.71 makes a USD 10,000 investment reduce its NZD value by about NZD 200 (as the USD now buys less NZD). For this reason, we believe the most profitable investors buying Tesla shares will either hold for the long-term or use Tesla shares as part of a trading strategy.
Our guide covers:
- Tesla Live Share Price (and six month history)
- Where Can I Buy Tesla Shares?
- Important Tesla-Specific Considerations
- Should You Buy Tesla Shares?
- Buying Tesla Shares - Frequently Asked Questions
- Conclusion
Advertising Disclosure: We may receive a commission if you join a share investing platform, but any such arrangement does not influence our shortlist. We have comprehensively reviewed and compared all platforms extensively (please see our investing section) to ensure you can compare and decide with confidence.
How to buy Tesla shares from New Zealand:
- Compare share investing platforms. Three platforms offer the lowest fees - Stake, Hatch and Sharesies. Our platform comparison explains the differences as how much you invest will determine which is best for you.
- Sign up and fund your USD wallet. Each platform requires some standard details (IRD number, proof of ID etc). Once you've selected what investment platform is best for your strategy and goals, you'll need to open an account. The process is similar no matter what your choice. You'll need to sign up online, verify your identity (this usually involves a passport, driver's licence and/or proof of address) and fund your account (by converting NZD into USD).
- Find and research Tesla shares on your platform: Search using "Tesla" or "TSLA" (the stock code/ticker), and you'll be able to see performance graphs, investor data other resources.
- Buy Tesla shares (or fractional shares): Once you're comfortable with the price, you can buy now, or use a market order to buy when the share price falls to a level you're comfortable with. You can purchase fractional shares, meaning you don't need to buy one, two, or three etc. Tesla shares. Instead, you can purchase 1/120th or 1/50th of a Tesla share and pay, for example, 1/120th or 1/50th of the market price. How much you invest in total will depend on your USD balance and how diversified you are.
- Manage your Tesla investment. Keeping informed on company news is essential to know if and when you should sell some or all of your shares. As a Tesla investor, you are eligible for dividends (if declared) and have the opportunity to vote on the management.
Buying Tesla Shares - What Platform is Best (Sharesies vs Hatch vs Stake)?
Our view is that Hatch and Stake are the best options. Sharesies charges investors 0.50% when you buy and sell (for transactions up to US$3,000) plus 0.10% on amounts above. This means if your Tesla shares increase in value, Sharesies will take a percentage cut when you sell your shares. Hatch charges a USD 3 fixed brokerage fee, and Stake has no brokerage fees at all.
Foreign Exchange needs to be considered - Sharesies leads with 0.40% while Hatch charges 0.5% and Stake 1.00%, which applies if you're funding and withdrawing after each investment.
Foreign Exchange needs to be considered - Sharesies leads with 0.40% while Hatch charges 0.5% and Stake 1.00%, which applies if you're funding and withdrawing after each investment.
Read our comprehensive Hatch Review
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Read our comprehensive Stake Review
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Background - Sharesies vs Hatch vs Stake - Our Thoughts:
Despite fundamentally offering the same access to US shares, each platform offers a unique selling point and benefit to a specific investor. For this reason, we have distinguished the platforms in our Editor's Choice list. Specifically:
Despite fundamentally offering the same access to US shares, each platform offers a unique selling point and benefit to a specific investor. For this reason, we have distinguished the platforms in our Editor's Choice list. Specifically:
- Hatch offers fixed USD 3 trades and a 0.50% FX fee. These two fees limit the amount of profits eaten up by the platform when you sell. We consider Hatch to offer the best value for anyone investing long-term in the US markets.
- Stake offers zero trade fees, meaning deposited money (exchanged at a 1.00% FX fee) can be applied and reinvested without brokerage fees. It also means that any dividends received can be reinvested without brokerage fees being charged, something not offered by Hatch (USD 3 fee) or Sharesies (0.50%+ fee).
- Sharesies, which has grown to offer Australian shares alongside its NZ and US market focus, offers the lowest FX rate (0.40%) but, for most trade values, the highest brokerage costs in dollar terms. That does not mean to say it's not an attractive platform - Sharesies is the most popular investing platform in New Zealand for many reasons beyond fees. However, in the case of buying shares in the US, our view is that Hatch and Stake offer a better deal for the average investor.
Tesla - Live Share Price (and Six-Month History)
The chart below shows the current or closing price of Tesla, as well as the opening (O), high (H), low (L) and closing (C) price during its most recent trading day. Pre indicates the pre-trading day price.
Where Can I Buy Tesla Shares?
There are six popular options, which we summarise in terms of fees, pros, cons and suitability for one-off or regular purchases of Tesla shares.
Dedicated US-trading investment platforms:
Other options offering US investments:
Important:
Dedicated US-trading investment platforms:
- Hatch - offers 3,900+ shares and ETFs, with US$3 per trade brokerage fee; our Hatch review explains the platform in detail.
- Stake - offers 3,900+ shares and ETFs with 0% brokerage fees and an app; our Stake review explains the platform in detail.
- Sharesies – offers 3,900+ shares and ETFs with 0.50% brokerage fees (for amounts under USD 3,000); our Sharesies review outlines more.
- Our guide to Sharesies vs Hatch vs Stake reveals each platform’s competitive edge, which takes into account Foreign Exchange (Sharesies leads with 0.40% while Hatch charges 0.5% and Stake 1.00%).
Other options offering US investments:
- ASB Securities and Jarden Direct both offer US share buying via their platforms; although both charge FX and brokerage fees at rates much higher than the above platforms. Our ASB Securities and Jarden Direct reviews outline the details.
- Interactive Brokers (IBKR) - Our view is that IBKR is more suitable for advanced traders and sophisticated investors, despite its very low FX and trade fees. Furthermore, signing up is not as seamless as with Hatch, Stake and Sharesies. There is also an ongoing account fee, charged monthly. Our Interactive Brokers review has more details.
Important:
- The total dollar value of the Tesla shares you're buying will often make one platform cheaper than another.
- In the example below, we compare Sharesies, Hatch and Stake, as these are the most popular choices among most New Zealanders buying US shares.
- ASB Securities and Jarden Direct have relatively higher foreign exchange fees than Sharesies, Hatch and Stake.
- Interactive Brokers is, arguably, more suitable for expert investors, requires more setup and approval, and there's no New Zealand-based support or regulation.
Our Top Two US Share Platforms for Buying Tesla Shares (with a trade value of over USD 750)
Our research suggests the best New Zealand platforms are Hatch and Stake for anyone investing over USD 750
- Sharesies' fee structure ultimately means it's only cost-effective for buying Tesla shares of USD 750 or below.
- Hatch and Stake offer the best value for buying Tesla shares - Moreover, we found that Hatch was the cheapest per trade when you include FX fees, owing to the fact Hatch's fixed $3 trade fee offers economies of scale the higher the transaction value. Table A demonstrates this below.
- If you exclude FX fees, i.e. the 0.50% or 1.00% fee for converting NZD to USD, Table B suggests Stake, with zero trading fees, is the most cost-effective way to buy-hold-sell-re-invest Tesla shares, although (small) regulatory fees apply on top of the Stake fees.
- Want to compare in detail? Our Sharesies vs Hatch vs Stake comparison has more details.
Know This: Sharesies is arguably the best option for transactions below USD 750; Sharesies' FX and transaction fee structure means that it is the most cost-effective platform when buying smaller amounts.
Table A - Buying Tesla Shares - Hatch vs Sharesies vs Stake (including FX fees to fund the purchase from NZD) - all figures are in USD
Results: Per the table below:
Results: Per the table below:
- Hatch was the cheapest per trade when you include FX fees, owing to the fact Hatch's fixed $3 trade fee offers economies of scale the higher the transaction value and lowest FX fees if you buy (or sell) more than USD 750 of Tesla shares.
- Sharesies was the most cost effective option for transactions less than USD 750
Tesla Investment (USD) |
Fees |
Hatch |
Sharesies |
Stake |
$500 |
FX Fee |
$2.50 |
$2 |
$5 |
- |
Trade Fee |
$3 |
$2.50 |
$0 |
- |
Total Fees |
$5 |
$4.50 (Best Value) |
$5 |
$2,000 |
FX Fee |
$10 |
$8 |
$20 |
- |
Trade Fee |
$3 |
$10 |
$0 |
- |
Total Fees |
$13 (Best Value) |
$18 |
$20 |
$10,000 |
FX Fee |
$50 |
$40 |
$100 |
- |
Trade Fee |
$3 |
$23 |
$0 |
- |
Total Fees |
$53 (Best Value) |
$63 |
$100 |
Table B - Buying Tesla Shares with an existing USD balance - Hatch vs Sharesies vs Stake (excluding FX fees to fund the purchase from NZD) - all figures are in USD
Results: Per the table below, Stake, with zero trading fees, is the most cost-effective way to buy-hold-sell-re-invest Tesla shares, although (small) regulatory fees apply on top of the trade cost.
If Stake doesn't charge for trades, how does it make money?
We believe that Stake makes money in two ways - firstly, it's FX fee (1% of NZD to USD or USD to NZD), as well as its optional premium subscription plan. However, it is a free platform and offers the same functionality as Hatch and Sharesies.
Results: Per the table below, Stake, with zero trading fees, is the most cost-effective way to buy-hold-sell-re-invest Tesla shares, although (small) regulatory fees apply on top of the trade cost.
If Stake doesn't charge for trades, how does it make money?
We believe that Stake makes money in two ways - firstly, it's FX fee (1% of NZD to USD or USD to NZD), as well as its optional premium subscription plan. However, it is a free platform and offers the same functionality as Hatch and Sharesies.
Tesla Investment (USD) |
Fees |
Hatch |
Sharesies |
Stake |
$500 |
FX Fee |
$0 |
$0 |
$0 |
- |
Trade Fee |
$3 |
$2.50 |
$0 |
- |
Total Fees |
$3 |
$2.50 |
$0 (Best Value) |
$2,000 |
FX Fee |
$0 |
$0 |
$0 |
- |
Trade Fee |
$3 |
$10 |
$0 |
- |
Total Fees |
$3 |
$10 |
$0 (Best Value) |
$10,000 |
FX Fee |
$0 |
$0 |
$0 |
- |
Trade Fee |
$3 |
$23 |
$0 |
- |
Total Fees |
$3 |
$23 |
$0 (Best Value) |
Reference: Table A and B are sourced from our Sharesies vs Hatch vs Stake guide.
Before buying Tesla shares, we suggest you consider the following points to help understand Tesla better:
- Determine the best share trading platforms for your needs: Each platform has different fees, user-experience and tools. If you're going to be trading, a low or zero-fee option is better. If you're investing small amounts (i.e. under USD 500) or buying fractional shares (i.e. one tenth of a share, or one hundredth of a share), your needs are different from a trader or long-term buy-and-hold investor. Our comparison table helps show you the fees and benefits of three major platforms.
- Learn about Tesla so that you understand what you're investing in: This is arguably essential in any investment so you know where your money is going. There are many trusted, reputable and free online resources specialising in Tesla shares, including Bloomberg, Investing.com, The Motley Fool and Simply Wall St (free to access, but you'll need to sign up)
- Buy shares now, or wait for later? You can use a Limit Order to buy Tesla shares when they reach a price you're comfortable to buy them. A Limit Order will automatically buy Tesla shares at that price as long as there is money in your platform's USD account. This also assumes Tesla's share price will drop to meet your Limit Order's price. If you plan to invest in Tesla for the long-term, dollar-cost averaging may be a strategy to consider.
- Decide how much you want to invest: No matter what Tesla's share price is, you can buy single or fractional shares. This means you don't need to have funds that match precisely to the current price.
- Making time to monitor your investment: Once you own Tesla shares, you'll need to check the price and keep up with the company news to see further buying opportunities, or, conversely, if there is bad news and you want to sell your shares.
Should You Buy Tesla Shares?
The decision comes down to whether you believe in Tesla as a company and expect the share price to rise. Tesla joined the S&P500 in December 2020, meaning many index funds purchased it to include it in their portfolio (and directly increasing the share price). However, past price rises are no guarantee of future returns.
Is buying individual Tesla shares directly right for you, or should you look at an index fund or ETF that holds Tesla shares? Our investments to hold forever guide highlights how you can maximise your returns and minimise your risks based on your investor experience.
Remember - Buying shares, unless you're day-trading, is a long-term commitment.
Is buying individual Tesla shares directly right for you, or should you look at an index fund or ETF that holds Tesla shares? Our investments to hold forever guide highlights how you can maximise your returns and minimise your risks based on your investor experience.
Remember - Buying shares, unless you're day-trading, is a long-term commitment.
Alternatives to buying Tesla shares directly
- ETFs – You can buy into Exchange Traded Funds (ETFs) that invest in Tesla – there are hundreds to select from (as outlined in this detailed summary here).
- Index and Managed Funds: Many New Zealand funds buy shares in Tesla; our guides to index funds and managed funds have further details.
- Contract for Difference Trading: CFD has risk, but it can be a more affordable way to get exposure to Tesla shares. Our CFD guide explains everything you need to know.
Important: When you invest in managed funds or buy an ETF, you do not directly own Tesla shares, and you have no control as to how many are in the portfolio. With a Contract for Difference, you never own the Tesla shares. Instead, you bet on the future movement of the Tesla share price. Your return on investment is based on the accuracy of your prediction.
Buying Tesla Shares - Frequently Asked Questions
Buying Tesla shares is easy, but the decision making process can take some time. We answer the most popular questions below:
Is Tesla overvalued, or is now a good time to buy shares?
The answer varies depending on published investor research. Furthermore, you may have a different opinion. To help you, we've included several useful and trusted investment websites extensively covering Tesla news and analyst reports:
- Bloomberg
- Investing.com
- The Motley Fool
- Simply Wall St (free to access, but you'll need to sign up)
Will Tesla's share price go up in the long-term? Or tomorrow?
No one knows the answer. Before buying Tesla shares (or any other company), we suggest reading our investments you can own forever guide, which includes and applies several Warren Buffet quotes for any New Zealand investor. A column in Stuff.co.nz by MoneyHub researcher Christopher Walsh makes further points.
Generally, before buying any share, we suggest looking at:
Generally, before buying any share, we suggest looking at:
- Solid management – does the company employ people that know the businesses inside out and get internally promoted, or does it rely on 'celebrity directors' to make up its board?
- The product or service is excellent (and people keep buying it) –companies with growing sales, dominance in their market, and constant innovation always outperform the wannabes.
- The balance sheet is strong – many listed companies are sinking in debt. Debt is expensive and reduces profit. Understanding balance sheets is essential if you're going to pick your shares.
Buying Tesla Shares – Conclusion
- If you're comfortable buying shares directly with one of the many US share investing platforms, it has never been easier for New Zealanders to own Tesla shares.
- Before buying Tesla shares, make sure you're 100% comfortable with the company. If you're a long-term investor, ask yourself whether you're happy to buy and hold this share for years to come.
Buying Tesla Shares - What Platform is Best (Sharesies vs Hatch vs Stake)?
- Our view is that Hatch and Stake are the best options if you plan to re-invest into USD when you sell your Tesla shares and the holding is above USD750.
- Sharesies is more suited to those making smaller investments, i.e. USD1 to USD750, given the lower transaction charges and lower upfront foreign exchange fee.
- Sharesies charges investors 0.50% when you buy and sell (for transactions up to US$3,000) plus 0.10% on amounts above. This means if your Tesla shares increase in value, Sharesies will take a percentage cut when you sell your shares. Hatch charges a USD 3 fixed brokerage fee, and Stake has no brokerage fees at all.
Read our comprehensive Hatch Review
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Read our comprehensive Stake Review
Best For
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