How to Buy Tesla Stock in Canada

| November 27, 2022
✓ Verified by PiggyBank Staff

Tesla is traded on the NASDAQ stock exchange in the US.

As a Canadian investor, you can buy this stock on Canadian trading platforms. However, it is worth monitoring the USD/CAD exchange rate to determine the currency impact of your investment decisions.

There are a few simple steps you can follow to add the American electric vehicle (EV) manufacturer to your stock portfolio from the comfort of your own home!

1. Select a suitable trading platform
2. Create a new account on the broker trading platform and deposit funds
3. Select the company you want to invest into (i.e., Tesla)
4. Choose your order type and the number of shares you want to buy
5. Execute the trade

1. Select a suitable trading platform

The first step to buying Tesla shares requires you to make a decision on the trading platform you would like to use.

Canadians have several options available to them either through their bank (e.g., TD Ameritrade) or through other platforms (e.g., Wealthsimple).

  • Ability to purchase Tesla stock in Canada
  • Low commissions
  • Aims to get you the best possible price
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2. Create an Account

Once you have selected the platform you would like to trade with, you have to open an account with that platform.

Most platforms will ask for identity verification details to validate that you are who you say you are.

By having your proof of ID (such as passport, driver’s license, etc.) ready to go, you can save time on the account opening process.

3. Select the company you want to invest into

In this case, you are likely looking to invest into Tesla.

Different brokerage platforms have different user interfaces for how to navigate to your selected stock.

Once you are familiar with your chosen brokerage’s interface, you will need to enter the stock ticker (NASDAQ:TSLA).

Alternatively, you may also be able to write out the full (Tesla, Inc) or partial name (Tesla) of the stock.

4. Choose your order type and the number of shares you want to buy

Once you have located the relevant stock, the next step is to enter the number of shares you want to buy of the stock.

At this stage, you will also need to select your order type. In general, you have three main types of orders:

  • Market order: Your order gets fulfilled at the prevailing market price
  • Limit order: An order to buy a stock at or below a maximum threshold. Your order only gets fulfilled if the market price meets this threshold or is lower.
  • Stop order: An order to buy a stock only when it reaches a pre-defined threshold. Your order gets fulfilled at the next available price once this threshold is met.

5. Execute the trade

The last step is to execute the trade by pressing the ‘Buy’ button.

At this stage, the brokerage platform will match you automatically to a seller willing to sell their shares at a mutually acceptable price.

Once this transaction is complete, your order is said to be ‘filled’, and you are the proud owner of Tesla’s stock.

How Many Tesla Shares Should I Buy?

The number of shares you should buy is dependent on your own personal financial profile and portfolio size, investing strategy and risk tolerance. Your investment criteria may differ entirely from your neighbour’s, and there is no single right answer.

For example, you may already own shares of another EV company.

In this case, you should consider whether you want to add Tesla shares, replace the existing shares with Tesla stock or keep them as they are.

Similarly, if you are a passive investor, then you might want to find ETFs or mutual funds that hold Tesla stock rather than owning the stock yourself.

Another consideration is that auto stocks tend to be more cyclical and follow the general health of the economy.

As such, if you have a bullish view on the economy in the short- to medium-term, then you might want to buy more shares of the Tesla] stock.

However, if you have a somewhat pessimistic view, then you may want to lower your exposure to Tesla or skip it entirely.

It is also important to do your research on Tesla to understand their strategy and operations.

Since the company is publicly traded, you can find a lot of good information in their most recent annual report or quarterly filings which contain comprehensive insight into the business’s history, recent financial results, growth plan, risks, and more.

You can check out Tesla’s Investor Relations page to find various filings, press releases, and presentations that will help you better understand the company.

This information can also help inform your decision on the number of shares you want to buy.

Tesla Company Overview

Tesla is an American company that designs, develops, manufactures and markets electric vehicles and energy generation and storage systems.

Operating with a mission to lead the transition to sustainable energy, the company employs 100,000+ people and sold about 936,172 cars according to their most recent annual report.

Tesla owns or leases 6 factories in California, Shanghai, Berlin, Texas, Nevada and New York.

The company’s current line-up of vehicles includes the Model 3 (a mid-sized sedan for the mass market), Model Y (a compact 7-seater SUV), Model S (high-performance full-sized sedan), and the Model X (high-performance mid-sized SUV).

Additionally, Tesla also manufactures energy storage products for residential, commercial, industrial, utility and energy generation customers.

Based on its recent annual report, Tesla generated total revenues of US$53.8 billion and pre-tax operating profit of $6.5 billion.


 

Frequently Asked Questions

  • Can I buy Tesla stock in Canada?
  • Can I buy Tesla stock on Wealthsimple?
  • Can I buy Tesla stock on Questrade?
  • Can I buy Tesla stock on Interactive Brokers Canada?

Harshil Dhanky is a financial services professional based out of Toronto, Ontario with extensive experience in the Canadian banking industry across Toronto, Calgary, and Vancouver in the capital markets, asset management, and lending sectors.

In the past, Harshil has worked with a range of consumer lending websites, personal finance advisors, investment managers, insurance companies, and other financial institutions to write and edit whitepapers, articles, blog posts, and other collateral read by consumer audiences to help them make better financial decisions.

His work spans a wide range of Canadian personal finance topics including savings and retirement programs, debt management tips, mortgages and personal loans, and other key financial issues for Canadian consumers at each stage of their life.