How To Buy Tesla Shares From India? Step By Step Guide

The company Tesla and its owner Elon Musk attract a lot of attention and intrigue from all over the world. As per the news, it will be a while before you see a Tesla automobile on the Indian roads, but you can still make Tesla a part of your investment portfolio.

The Sensex has hit record levels in the past few months, and the upsurge continues. For those who want to have a diversified portfolio and want to go beyond Indian markets, investing in US stocks like Tesla may be a suitable option. 

The obvious question that comes to mind is how to buy Tesla shares in India?

How to buy Tesla shares in India?

Indians can buy Tesla or other US shares from India through various routes. Check out the various investment routes mentioned below. 

Direct investment 

If you want to choose the direct route, you can invest in Tesla stocks in the following three ways: 

  • Open a trading account with an Indian broker who has a tie-up with a foreign broker. Many brokers in India have tie-ups with international firms, which facilitate your investment in the overseas stock market. 
  • Open an account with a foreign brokerage house. Foreign brokerage houses have their offices in India too. You can approach them to open an account if you want and start investing in US stocks.
  • You can also invest in US stocks through apps specially designed for buying shares of foreign companies. Apps for overseas investment are also a convenient and popular option. 

INDmoney is one such app-based solution that can help you invest in Tesla shares. You can open a 2 in 1 super account with them. They offer the following advantages:

  • No need to pay setup fees or any monthly charges to start an account.
  • With the best exchange rate offers — you get more dollars for your rupees.
  • Furthermore, the platform offers instant processing.
  • Fastest remittance
  • No need to pay commissions on buy or sell orders. 
  • Personalized advisory services 

Indirect investment

Those who do not want to invest directly in the company can choose to take the indirect route and invest through Mutual Funds or Exchange-Traded Funds (ETFs). However, when you choose the indirect route, you are not sure how much of your money is invested in the shares of your choice, in this case, Tesla. 

Why invest in Tesla?

  • For Indians, investing in the US stock market offers them an opportunity to diversify their portfolio and be a part of global technological innovation.
  • When you invest in an innovative business like Tesla, you diversify your portfolio geographically. 
  • You can invest in Tesla shares in fractions, too. If you want to start small and feel they are too expensive to buy, you can start with a small amount and buy a part of it.
  • Tesla has extensive expansion plans and eventually wants to manufacture 20 million electric vehicles annually for the coming decade. This number is more than double the current production of other automobile giants.
  • Hertz announced in October 2021 that it is ordering 100,000 vehicles from Tesla to build its rental fleet by the end of next year. This information boosted the company’s share value further, and Tesla’s market capitalization went above $1 trillion for the first time.

Despite all these ambitious plans, it is vital to remember that Tesla is still a subject of investigation for Tesla autopilot crashes. Tesla is not the only formidable player in the electronic vehicle market and faces tough competition from other automobile manufacturers. 

Things to remember 

  • When you invest in Tesla stocks or other US stocks, your profits will be subjected to the currency exchange rate.
  • The rupee gets converted to the dollar and, when you sell the equity, the dollars are converted to rupees. Currency fluctuations will impact your returns in the form of any dividends that you earn or the sale proceeds (if and when).
  • As per the guidelines laid down by the Reserve Bank of India, you can invest up to $250,000 overseas in a year without the need for any special permission.
  • India has a double tax avoidance agreement (DTAA) with the US. Without the DTAA, the dividend would be added to your income and charged at the usual slab. Due to DTAA, the tax withheld in the US can be offset against the tax liability in India.
  • However, you still have to pay long-term capital gains tax if you hold stocks for more than two years or short-term capital gains tax if the duration is less than two years.

Before you invest in stocks, you should ascertain your risk appetite. Now that you know how to buy Tesla shares in India, you can conduct thorough research and buy Tesla shares once you are satisfied with the information at hand. Pick the shares as per your risk profile after doing thorough research about them.  

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