Investing in Tesla (TSLA) Stocks from India

Yes, you can invest in Tesla (TSLA) stock even though you reside in India. This article explores the ways to achieve this, delves into the process, and highlights crucial factors to consider before making an investment decision.

Understanding International Investing

Traditionally, Indian investors primarily dealt with the Indian stock market (NSE/BSE). However, the landscape has evolved, enabling participation in the US stock market. This necessitates opening an international trading account with a broker registered with Indian authorities and licensed to facilitate US stock trades.

Tesla Inc Share Price

Before investing, it is always good to understand the stock price of TSLA Inc. Below chart provides a price comparison of Tesla stocks on a daily basis.

Methods to Buy Tesla Stock:

There are two primary options for Indian investors:

Direct Investment:

This method involves opening a dedicated international trading account with a broker like Zerodha, Groww, or Vested. These platforms offer US stock trading facilities after completing a Know Your Customer (KYC) process that adheres to US regulations. This typically involves submitting government-issued ID proofs and address verification.

Indirect Investment:

This approach involves investing in Indian mutual funds or Exchange Traded Funds (ETFs) that provide exposure to international stocks, including Tesla. While not directly owning Tesla shares, this offers a diversified portfolio with international holdings.

Steps Involved in Direct Investment

1. Selecting a Broker: Research and choose a reputable broker registered with SEBI (Securities and Exchange Board of India) and licensed for US stock trading.
2. Account Opening: Initiate the account opening process with the chosen broker. This involves filling out online forms, submitting KYC documents, and completing the verification process.
3. Funding the Account: Once the account is active, transfer funds from your Indian bank account to your US dollar denominated trading account. Conversion charges and currency fluctuations may apply.
4. Placing the Order: Research the current market price and place a buy order for Tesla shares (TSLA) specifying the desired quantity.

Factors to Consider

• Costs: International trading typically incurs additional charges compared to domestic transactions. Be aware of brokerage fees, foreign exchange conversion rates, account maintenance costs, and potential minimum investment requirements.
• Tax Implications: Consult a tax advisor to understand the tax implications of investing in US stocks from India. Capital gains taxes and dividend distribution taxes may apply.
• Market Fluctuations: The US stock market operates differently from the Indian market. Carefully research Tesla's financial health, market trends, and potential risks involved in any stock investment.

Technical Analysis of TSLA Stock

Alternatives to Direct Stock Purchase

• Mutual Funds: Invest in Indian mutual funds that offer exposure to international stocks, potentially including Tesla. This provides portfolio diversification and professional fund management.
• ETFs: Exchange Traded Funds that track a basket of stocks, including US stocks, can offer indirect exposure to Tesla without directly owning individual shares.

Additional Tips

• Start Small: Begin with a small investment to understand the process and manage potential risks associated with international stock markets.
• Do Your Research: Thoroughly research Tesla's financial performance, future prospects, and the overall US stock market before making any investment decisions.
• Seek Professional Advice: Consult a financial advisor specializing in international investments to understand the risks and benefits tailored to your financial situation and investment goals.

Frequently Asked Questions

Answers to some of the most frequently asked questions about Tesla Inc and investing in Tesla from india

Can I buy Tesla Inc Shares in India?

Yes, Tesla shares can be bought in India by opening an international trading account with domestic brokers like INDMoney or Groww.

How to buy Tesla Shares in India?

One can easily invest in Tesla Inc shares from India by:
Direct Investment - Opening an international trading account which includes KYC verification in the US. You can start adding funds in USD balance to buy Tesla Inc shares once your account gets activated.

Indirect Investment - Under this form of investment, you can choose either a Mutual Fund (MF) or an Exchange-Traded Fund (ETF) that invests in global shares and start investing in shares of Tesla Inc.

How are foreign stocks taxed in India?

Foreign listed shares are considered to be long term capital asset, if such shares are held for more than 24 months before sale and any gain or loss from such sale, shall accordingly be considered as long-term capital gain or loss (LTCG/L). If such shares are held for 24 months or less, then the same shall be considered as short-term capital gain or loss (STCG/L).

Long Term Capital Gain on Foreign shares are taxable at 20%, besides the applicable surcharge and cess. STCG is taxable at the applicable tax rates for the individual (plus applicable surcharge and cess).

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.

I hope you all liked the article and are confident on buying Tesla stocks.

Happy Investing 😃