Can I buy Tesla stock in India?
You’ve seen the headlines about the Cybertruck, watched the rocket launches, and admired Tesla’s innovation. This often leads to a big question from aspirational investors: “Can I buy Tesla stock in India and own a piece of that future?” The short answer is yes, you absolutely can, and the process is more straightforward than you might imagine.
Investing in global giants from India no longer requires complex international bank accounts or lengthy paperwork. The entire process has been simplified by a new generation of regulated Indian fintech platforms. These apps, designed specifically to help you buy US stocks online, handle the difficult parts, making global investing accessible right from your smartphone.
Here’s how to invest in Tesla shares from India in a few simple steps, covering how to choose the right platform, complete the quick digital setup, fund your account, and make your first investment—even with a small amount.
How It Works: Your Gateway to Buying US Stocks from India
You’ve likely used an app like Groww or Zerodha to invest in the Indian stock market. It’s a natural question to ask: “Can I just use my current account to buy Tesla stock?” The answer is no, because those accounts are designed to trade stocks listed on Indian exchanges like the NSE and BSE. Since Tesla is an American company, it trades on a US stock exchange called the NASDAQ.
To own a piece of a US-listed company, you need a US brokerage account—the American equivalent of your Indian DEMAT account. It’s a special account legally set up to hold your US stocks and cash under your name. Just a few years ago, opening one from India was a complicated and expensive process reserved for the very wealthy.
Fortunately, that has completely changed. A new wave of Indian fintech apps has emerged to solve this exact problem. They act as a bridge, partnering with regulated US-based brokerage firms. This partnership allows you to go through a simple, digital KYC process in India to open a genuine US brokerage account from your smartphone.
Step 1: Choosing Your App for US Investing
With this new bridge to US markets, the first real step is picking your platform. A handful of user-friendly Indian apps are competing to help you get started. The most popular and well-regarded names you will encounter are Indmoney, Vested Finance, and Groww, which now also offers access to US stocks. Each of these simplifies the entire process of opening an account and investing.
To help you decide which is right for you, consider these points:
- Indmoney: Tries to be an “all-in-one” super app, letting you track your Indian stocks, mutual funds, and US investments in one place.
- Vested Finance: Is a specialist platform focused exclusively on US stocks and ETFs, offering a more dedicated experience for global investing.
- Groww: Integrates US stocks into its existing, familiar interface, making it a convenient option if you’re already a user.
Ultimately, these platforms are simply regulated gateways. They partner with US firms to ensure your account is opened correctly and your money is held securely under your name. When looking for the best international stock brokers for India, your choice often comes down to personal preference on fees and app design. Once you’ve picked one, the next step is a quick identity verification process.
Step 2: The 10-Minute KYC to Open Your Account
Once you’ve installed your chosen app, the next hurdle is identity verification, also known as Know Your Customer (KYC). If you’ve ever opened a bank account or a mutual fund in India, you’ve done this before. The process to buy US stocks online begins with this same digital verification.
The requirements to open a US brokerage account are refreshingly simple. You’ll just be asked for your PAN card for identity and tax purposes, and your Aadhaar for a quick digital signature (e-signature). The entire application is typically done in minutes by uploading documents through the app. Once your account is approved, the only step left before you can buy a stock is sending money to it.
Step 3: Sending Money Abroad Legally (LRS & TCS Explained)
Now that your US brokerage account is ready, you need to fund it. Because you’re sending Rupees from India to your US account to be converted into Dollars, the process is guided by the Reserve Bank of India. The RBI’s framework for this is called the Liberalised Remittance Scheme (LRS). It is your official annual allowance for sending money abroad, currently set at $250,000 per person for purposes like investing. Every time you fund your account, it’s done under this LRS rule.
This is also where a specific tax comes into play: Tax Collected at Source (TCS). When you transfer funds to your brokerage account for investing in foreign stocks, a 20% TCS is applied to the amount. This is not an extra tax but an advance tax payment made on your behalf, similar to how TDS is deducted from a salary.
You can claim the full TCS amount back as a credit when you file your annual Income Tax Returns (ITR), as it simply gets adjusted against your total tax liability. This TCS is separate from the final tax on gains from the US stock market, which only applies if you sell your shares for a profit.
With the legal and tax aspects sorted, you’re all set. Now comes the exciting part: actually buying the stock.
Step 4: You Don’t Need Lakhs: Buying a ‘Slice’ of Tesla with Fractional Shares
A single share of Tesla can seem intimidating. With the Tesla stock price in Indian rupees often running well over ₹15,000, it feels like a high barrier to entry. But what if you didn’t have to buy a whole share? Like buying a slice of pizza instead of the whole pie, you can invest in expensive US stocks through a feature called “fractional investing.”
Instead of buying one full share, you decide how much money you want to invest. For example, you can invest just ₹1,000 or ₹5,000 to own a tiny, fractional piece of a Tesla share. Nearly all modern platforms that allow you to buy fractional shares of US companies from India offer this, making global investing accessible to everyone.
Even with a small fraction, your investment behaves just like a full share. If Tesla’s stock price goes up by 10%, the value of your small piece also goes up by 10%. This makes it practical to invest in Tesla from India without a large upfront commitment.
What Are the Real Costs? A Breakdown of Fees and Taxes
Investing, like any service, comes with some costs. The most common is the foreign exchange (forex) conversion fee. When you add money to your US stock account, your Rupees are converted to Dollars, and the platform charges a small percentage for this service. These conversion fees are the primary charges for buying US stocks from India that apply each time you fund your account.
Beyond this, you should also check for withdrawal charges, which some platforms apply when you move money back to your Indian bank. Many modern apps offer zero-brokerage on trades, meaning you don’t pay a fee to buy or sell the stock itself. Remember the Tax Collected at Source (TCS) on your deposit is usually adjustable when you file your taxes.
Fees are only one part of the equation; profits bring taxes. The good news is, you don’t pay any tax in the US. The profit you make from selling a US stock is considered a capital gain and is taxable in India. If you hold the stock for more than 24 months, your profit is taxed at a lower rate as a long-term capital gain. Selling it sooner means the profit is added to your income and taxed at your slab rate.
The real cost includes the fees to get your money in and the tax on gains from the US stock market when you get it out. However, one more factor can affect your returns: the changing value of the Rupee against the Dollar.
Beyond Stock Price: The ‘Currency Risk’ Most Beginners Forget
This hidden factor is known as currency risk, one of the key risks of investing in foreign markets. When you buy Tesla stock, your money is held in US Dollars. Since you live in India, you ultimately care about how much your investment is worth in Rupees. The value of your investment, therefore, depends on two moving parts: the stock’s price and the constantly changing USD-to-INR exchange rate.
For example, assume you invest when $1 equals ₹80. If Tesla’s stock price goes up, that’s great. But if the Rupee gets stronger and the exchange rate drops to $1 = ₹75 when you sell, your dollar profits will convert back to fewer rupees. On the flip side, if the Rupee weakens to $1 = ₹85, your profits get an extra boost when converted back. The final Tesla stock price in Indian rupees that you realize depends heavily on this rate.
Your total return isn’t just about Tesla’s performance on the US stock market; you are also making a bet on the exchange rate. This doesn’t need to be scary, but it is another factor to be aware of. For some investors, picking individual stocks while also worrying about currency can feel like a lot to handle.
Not Ready for One Stock? A Simpler Way to Invest in US Tech
If the idea of your entire investment riding on the fortunes of a single company feels too risky, you have other options. Instead of putting all your money on Tesla, you can spread it across many top US companies at once. This strategy, known as diversification, is a foundational principle of smart investing that protects you from the dramatic ups and downs of any one stock.
One of the most popular alternatives to buying Tesla stock directly is through an Exchange-Traded Fund (ETF)—a pre-packaged basket of stocks. For instance, by investing in a Nasdaq 100 ETF from India, you aren’t just buying Tesla; you’re also buying small pieces of Apple, Amazon, Google, and other major tech firms all in one go. Your success becomes tied to the broader market, not just one company’s performance.
These US-focused ETFs and even some mutual funds are available on the same Indian platforms you would use to buy individual shares. They provide a simpler, more diversified entry point into global investing.
Your 5-Step Checklist to Buying Your First ‘Slice’ of Tesla
Here is your personal checklist for getting started with US stocks:
Your Blueprint for Buying US Stocks:
- Choose a Platform: Explore a regulated app like IndMoney, Groww, or Vested to open your US account.
- Complete KYC: Use your PAN and Aadhaar for the quick, digital verification.
- Fund Your Account: Add funds, keeping the upfront TCS tax in mind (which you can often claim back).
- Start Small: Buy a fractional share of Tesla to learn the process without a large commitment.
- Track Both Factors: Remember to monitor the stock’s price and the USD/INR currency rate.
You now have the blueprint. The key is to start small, stay informed, and build your confidence one step at a time. The question is no longer if you can invest in global companies you admire, but how you’ll begin your journey. That starts with one simple action: choosing an app to explore.