Tesla (TSLA) has long been a favorite for investors seeking exposure to the electric vehicle (EV) revolution and clean energy. For Indian investors, however, looking beyond the BSE/NSE to the NASDAQ can seem daunting. The good news is that the process has become significantly streamlined.
If you are wondering how to buy Tesla shares in India, this guide breaks down the structure, regulatory considerations, and tax implications you need to know before pressing that “Buy” button.
Why Look at Tesla?
While Indian markets have their own auto giants, Tesla offers a different value proposition: a vertically integrated energy and tech company. From autonomous driving software (FSD) to the Optimus robot and energy storage, investing in Tesla is often seen as a bet on future tech. But how do you bridge the geographical gap?
The Regulatory Structure: The LRS
The backbone of investing in US stocks from India is the Liberalised Remittance Scheme (LRS).
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The Limit: The Reserve Bank of India (RBI) allows resident individuals to remit up to $250,000 (approx. ₹2 crore+) per financial year for permissible transactions, including investing in foreign stocks.
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The Compliance: You don’t need special permission for amounts under this limit, but your bank will require your PAN card to track these remittances.
Step-by-Step: How to Buy Tesla Shares in India
Thanks to modern fintech apps, the answer to how to buy Tesla shares in India is no longer “call an international broker.” Here is the simplified workflow:
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Select a Platform: Choose a reliable brokerage platform. Popular options for Indian investors include Vested, INDmoney, or Interactive Brokers. Many Indian brokers (like ICICI Direct or HDFC Securities) also offer global investing services through tie-ups.
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Complete KYC: You will need to submit your PAN card and address proof. Since you are investing in the US, you strictly need to adhere to US regulatory norms as well.
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Fund Your Account (Remittance): This is the most crucial step. You must transfer funds from your Indian bank account to the US brokerage account. This transaction is treated as an LRS remittance.
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Exchange Rates & Fees: Be aware of the FX (Forex) fees. Banks may charge a spread on the USD-INR conversion, and some platforms charge a one-time setup or withdrawal fee.
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Place Your Order: Once funded, search for ticker symbol TSLA.
Pro-Tip: Tesla shares can be expensive (often ranging between $200-$400 per share). You do not need to buy a whole share. Most platforms allow fractional investing, meaning you can invest as little as $10 or $50 to own a fraction of a Tesla share.
Key Financial Considerations
Knowing how to buy Tesla shares in India is incomplete without understanding the costs involved.
1. Tax Collected at Source (TCS)
As of late 2023 and continuing into 2025, the Indian government levies a 20% TCS on foreign remittances exceeding ₹7 Lakh in a financial year.
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Note: This is not an extra cost but an advance tax. You can claim this amount back as a refund or credit when filing your Income Tax Return (ITR).
2. Capital Gains Tax
When you sell your Tesla stock, the profits are taxable in India:
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Long-Term Capital Gains (LTCG): If you hold the shares for more than 24 months, the gains are taxed at 12.5% (per the new rules effective post-July 2024/April 2025 updates).
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Short-Term Capital Gains (STCG): If sold within 24 months, the gains are added to your total income and taxed according to your income tax slab.
3. US Tax Implications
The US does not tax capital gains for non-residents. However, if Tesla were to pay a dividend (which they currently do not), the US would withhold a flat 25% tax on that dividend income. You can claim a credit for this in India under the Double Taxation Avoidance Agreement (DTAA).
Conclusion
Investing in global giants is an excellent way to diversify your portfolio and hedge against rupee depreciation. By understanding the LRS limits and taxation, the process of how to buy Tesla shares in India becomes straightforward and secure. Always consult a financial advisor to align these high-growth assets with your personal risk appetite.