Want to own a piece of the future of electric vehicles and renewable energy? Investing in Tesla (TSLA) shares from India is more accessible than you might think! This comprehensive guide will walk you through every step, from choosing the right platform to understanding the costs and taxes involved.
Step 1: Are You Ready to Go Global?
Before you even think about buying a single share of Tesla, let's confirm you're prepared for international investing. Investing in foreign stocks like Tesla requires a slightly different approach than investing in Indian equities.
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| How To Purchase Tesla Shares |
Understanding the Landscape:
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Liberalised Remittance Scheme (LRS): As an Indian resident, you can remit up to USD 250,000 per financial year (April-March) under the RBI's Liberalised Remittance Scheme. This is your total limit for all foreign currency outward remittances, including investments, education, travel, etc.
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Currency Conversion: You'll be dealing with US Dollars (USD), so understanding exchange rates and conversion fees is crucial.
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Tax Implications: There are tax considerations both in the US and India. Don't worry, we'll cover this in detail!
Are you excited to diversify your portfolio with a global giant like Tesla? If yes, let's move on!
Step 2: Choose Your Investment Pathway ️
There are primarily two ways for Indian residents to invest in US stocks like Tesla:
Option A: Open an Account with an Indian Broker Offering US Stock Access
Many Indian brokers have partnered with international brokerage firms to provide seamless access to US markets. This can be a convenient option as it often involves a more integrated experience with your existing Indian financial setup.
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Examples: ICICI Direct Global Invest (partners with Interactive Brokers), HDFC Securities (partners with Vested Finance), Motilal Oswal (partners with DriveWealth LLC), INDmoney, Appreciate.
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Pros: Often provides a more familiar interface, integrated fund transfer mechanisms, and sometimes Indian customer support. They might also offer features like fractional investing, which allows you to buy a portion of a Tesla share if the full share price is too high.
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Cons: Fees might be slightly higher due to the intermediary, and the range of US stocks available might be limited compared to direct international brokers.
Option B: Open an Account Directly with an International Broker
Some international brokerage firms allow Indian residents to open accounts directly. This typically offers a wider range of investment options and potentially lower fees for frequent traders.
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Examples: Interactive Brokers, Charles Schwab International (TD Ameritrade is now part of Charles Schwab).
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Pros: Wider range of stocks and ETFs, potentially lower commission fees, advanced trading tools and research.
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Cons: The account opening process might be more complex, and funding your account can involve higher bank transfer fees. Customer support might be primarily US-based.
Consider your comfort level with technology, desired level of control, and how frequently you plan to trade before making your choice.
Step 3: Open Your Global Investment Account
Once you've chosen your preferred pathway, it's time to get your account set up. The process is largely online but requires certain documents.
QuickTip: Scan the start and end of paragraphs.
Step 3.1: Gather Required Documents
Before you begin the online application, ensure you have these documents ready, typically in digital format (scanned copies or clear photos):
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PAN Card: Your Permanent Account Number is mandatory.
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Aadhaar Card: For identity and address verification.
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Passport: For international identity verification.
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Proof of Address: Utility bill (gas, electricity, water, cable) or bank statement (not older than 3 months) showing your name and residential address.
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Bank Account Details: For linking your Indian bank account for fund transfers.
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Income Proof: Salary slips, bank statements, or IT Returns might be required by some brokers to assess your financial standing and comply with regulations.
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Form W-8BEN: This is a crucial US IRS form for non-US citizens, allowing you to claim reduced tax rates on US-sourced income (like dividends) under the India-US Double Taxation Avoidance Agreement (DTAA). Your broker will guide you on how to fill and submit this.
Step 3.2: Complete the Online Application
The application process is mostly digital and involves several steps:
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Sign Up: Visit the chosen broker's website or download their app and begin the sign-up process. You'll typically need to provide your email and create a password.
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Fill Personal Details: Provide your personal information, including name, date of birth, address, occupation, and financial details.
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KYC (Know Your Customer) Verification: Upload the required documents. This step ensures compliance with anti-money laundering (AML) regulations. Some brokers might use video KYC for faster verification.
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Link Bank Account: Connect your Indian savings bank account for funding your investment account.
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Sign Agreements: Electronically sign the necessary agreements, including terms and conditions, power of attorney (if applicable), and the W-8BEN form.
The entire process is usually streamlined, but ensure all details are accurate to avoid delays.
Step 4: Fund Your Account
This is where you convert your Indian Rupees (INR) into US Dollars (USD) to buy Tesla shares.
Step 4.1: Initiate Fund Transfer
This process is governed by the LRS and typically involves one of the following methods:
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Through Your Broker's Integrated System: Many Indian brokers offering US stock access have tie-ups with banks (like HDFC, Axis, ICICI, Federal Bank) for direct fund transfers. You can initiate the transfer from within their platform. This is often the most convenient method.
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Via Bank Wire Transfer: If you're using a direct international broker, you'll likely need to initiate a wire transfer from your Indian bank account to your international brokerage account. You'll need the beneficiary details (account name, account number, SWIFT/BIC code) provided by your broker.
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Using Forex Service Providers: Some platforms might partner with forex service providers for more competitive exchange rates.
Step 4.2: Understand Associated Costs
Be aware of the various charges involved in fund transfers:
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Foreign Exchange (Forex) Conversion Fees: Banks and platforms charge a markup on the exchange rate, typically 0.75% to 2% of the transferred amount.
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Wire Transfer Fees: Your bank will charge a fee for initiating an international wire transfer, which can range from ₹500 to ₹2,000 per transaction.
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TCS (Tax Collected at Source): As of October 1, 2023, a 20% TCS is applicable on remittances exceeding ₹7 Lakhs under the LRS for investment purposes. This TCS can be claimed as a credit when you file your Income Tax Return (ITR).
It's advisable to transfer a slightly larger amount than your intended investment to cover these fees.
Step 5: Place Your Tesla Order (TSLA)
Tip: The details are worth a second look.
Once your funds are in your brokerage account and converted to USD, you're ready to buy!
Step 5.1: Find Tesla's Stock Symbol
Tesla's stock is listed on the NASDAQ exchange under the ticker symbol TSLA.
Step 5.2: Understand Current Price & Order Types
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As of July 14, 2025, the live share price of Tesla Inc. (TSLA) is approximately $313.51. Please note that stock prices are highly volatile and change constantly. This is just for illustrative purposes.
When placing an order, you'll typically have these options:
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Market Order: Buys or sells immediately at the best available current market price. This is good for quick execution but the price might fluctuate.
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Limit Order: Allows you to set a specific price at which you want to buy or sell. Your order will only execute if the stock reaches that price or better. This gives you more control over the price you pay.
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Stop Order: Used to limit potential losses or lock in profits.
Step 5.3: Decide on Full or Fractional Shares
Tesla's share price can be quite high. Many platforms now offer fractional share investing, which is a fantastic feature for Indian investors.
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What are Fractional Shares? They allow you to buy a portion of a share, rather than a whole share. For example, if Tesla is trading at $313 and you only want to invest $100, you can buy approximately 0.32 shares.
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Benefits: Makes expensive stocks accessible, allows for better portfolio diversification with smaller capital, and facilitates dollar-cost averaging (investing a fixed amount regularly regardless of share price).
Step 5.4: Execute Your Trade ✅
Enter the number of shares (or the dollar amount for fractional shares) you wish to buy and confirm your order. Your order will then be sent to the market for execution.
Congratulations, you're now a proud owner of Tesla shares!
Step 6: Monitor Your Investment & Understand Tax Implications
Buying is just the first step. Monitoring your investment and understanding the tax framework is crucial for long-term success.
QuickTip: Reading carefully once is better than rushing twice.
Step 6.1: Track Performance
Keep an eye on Tesla's performance through your brokerage platform. Market conditions, company news, and global events can all impact the stock price.
Step 6.2: Tax Implications for Indian Residents
Navigating taxes for US stock investments can seem complex, but the India-US Double Taxation Avoidance Agreement (DTAA) helps prevent you from being taxed twice on the same income.
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Dividend Tax:
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The US applies a 25% withholding tax on dividend payments to Indian investors.
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In India, dividend income is added to your total income and taxed as per your applicable income tax slab.
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You can claim a tax credit for the tax already paid in the US by filing Form 67 and including Schedule TR with your Indian Income Tax Return (ITR). This means you only pay the difference if your Indian tax liability on the dividend is higher than the US tax.
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Capital Gains Tax:
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Short-Term Capital Gains (STCG): If you sell your Tesla shares within 24 months of purchase, the profits are considered STCG. These gains are added to your total income in India and taxed as per your applicable income tax slab. There's no US capital gains tax for non-residents.
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Long-Term Capital Gains (LTCG): If you sell your Tesla shares after holding them for more than 24 months, the profits are considered LTCG. These gains are currently taxed at 12.5% (plus applicable surcharge and cess) in India. Note: As per recent information, the long-term capital gains tax for holdings over 24 months has been reduced to 12.5% as of Budget 2024, with removal of indexation benefits.
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Currency Fluctuations: Gains or losses due to currency exchange rate differences are also considered part of your capital gains/losses.
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Reporting Requirements: You must report all foreign assets and income in your Indian ITR, specifically using Schedule FA (for declaring foreign assets and accounts) and Schedule FSI (for reporting foreign-sourced income).
Consult a tax advisor for personalized guidance, as tax laws can be complex and subject to change.
Step 7: Reinvest or Withdraw
Depending on your investment goals, you'll either reinvest your earnings or withdraw them.
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Reinvesting Dividends: If Tesla starts paying dividends (currently it does not), you can often choose to automatically reinvest them to buy more fractional shares.
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Withdrawing Funds: When you decide to sell your shares and withdraw your money, the funds will be converted back to INR and transferred to your linked Indian bank account. Be mindful of withdrawal fees and current exchange rates.
Frequently Asked Questions (FAQs)
How to choose the right brokerage platform for Tesla shares from India?
To choose the right platform, consider factors like brokerage fees, foreign exchange conversion rates, availability of fractional shares, customer support, and ease of fund transfers. Compare options like INDmoney, Appreciate, Motilal Oswal, ICICI Direct Global Invest, or direct international brokers like Interactive Brokers based on your trading frequency and investment amount.
How to transfer money to a US brokerage account from India?
You can transfer money via your Indian bank's international wire transfer service or through integrated payment solutions offered by Indian brokers that partner with foreign firms. Ensure you adhere to the Liberalised Remittance Scheme (LRS) limits and account for foreign exchange and wire transfer fees.
How to deal with currency conversion when buying Tesla shares?
QuickTip: Skip distractions — focus on the words.
Currency conversion from INR to USD happens when you fund your US brokerage account. Be aware of the exchange rates offered by your bank or broker, as they often include a markup. Some platforms claim to offer competitive forex rates.
How to buy fractional shares of Tesla?
Many platforms like INDmoney, Appreciate, Motilal Oswal, and Interactive Brokers offer fractional share investing for US stocks, including Tesla. When placing an order, you can specify the dollar amount you wish to invest instead of the number of shares, and the platform will automatically buy a corresponding fraction of the share.
How to understand the tax implications of Tesla dividends for Indian investors?
Dividends from Tesla shares are subject to a 25% withholding tax in the US. In India, this income is added to your total income and taxed at your slab rate. You can claim a credit for the US tax paid against your Indian tax liability under the India-US DTAA by filing Form 67 and Schedule TR.
How to calculate capital gains tax on selling Tesla shares in India?
Short-term capital gains (shares held for less than 24 months) are added to your income and taxed at your slab rate. Long-term capital gains (shares held for more than 24 months) are taxed at 12.5% (plus surcharge and cess). Currency gains/losses are also part of capital gains.
How to ensure regulatory compliance when investing in US stocks from India?
Ensure your chosen broker is regulated in both India (if it's an Indian broker offering foreign access) and the US. Adhere to the LRS limits (USD 250,000 per financial year) and fulfill all reporting requirements in your Indian Income Tax Return (Schedule FA, Schedule FSI).
How to find Tesla's current share price and market information?
You can find Tesla's (TSLA) current share price and other market information on your brokerage platform, financial news websites (like NASDAQ, Bloomberg, Reuters), or apps that provide live stock quotes. As of July 14, 2025, TSLA's price is approximately $313.51.
How to withdraw funds from your US brokerage account to India?
To withdraw funds, place a sell order for your Tesla shares on your brokerage platform. Once the sale is settled, initiate a withdrawal request. The funds will be converted from USD to INR (at prevailing exchange rates) and transferred to your linked Indian bank account.
How to get help with tax filing for US stock investments in India?
It is highly recommended to consult with a qualified tax advisor or chartered accountant specializing in international taxation. They can help you accurately calculate your tax liabilities, claim foreign tax credits, and ensure compliance with both Indian and US tax regulations.
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