Investing Simple Logo
Menu
Get Started on Robinhood With 1 Free Stock!
Robinhood is offering new users 1 free stock worth between $3 and $225 when you open an account and fund it with any amount of money.
Written by J. Thomas on January 29, 2021
Category: 
FTC Disclosure

How To Buy $100 Worth Of Tesla Stock

Tesla has been in the news a lot in the past several years, and not just because of the company's revolutionary success in the automotive market.

In December of 2020, Tesla made stock market history by becoming the largest company to ever be added to the S&P 500 index, an index that tracks America's 500 largest companies. Tesla's share price growth was so rapid, that on the day it was added to the index, it was already in the top ten largest companies by market capitalization.

That was great news for Tesla's investors, but a high share price can make it difficult for typical, smaller investors to buy shares.

At its peak share price, a single share of Tesla was valued at over $2,200 a pop.

Best Free Stock Promotions

BrokeragePromotionLink
Robinhood Logo1 Free Stock (Up To $225)Download
Webull Logo2 Free Stocks (Up To $1,850)Download
Firstrade trading platform2 Free Stocks (Up To $400)Download
M1 Finance Robo AdvisorGet $30 When You Deposit $1,000Download
Acorns LogoFree $10 BonusDownload

Tesla's Stock Split

In order to make investing in Tesla more accessible, the carmaker decided to offer a 5 for 1 stock split, where all shares would be divided into 5 pieces. This effectively cut the share price by 80% and allowed small investors to once again participate in the company's growth.

But even that wasn't enough. Since the stock split in August 2020, the share price has doubled again to over $800. A price point that is far too high for most investors that want to maintain a well-diversified portfolio.

tesla

Buying Stock Slices

So, how can investors participate in Tesla's success without coughing up $800 for just one share?

A few financial services providers have caught onto the idea that investors need a better way to invest in companies with high share prices. This new method has become a favorite for small and mid-size investors alike.

Fractional shares, or "stock slices" have grown in popularity as more brokers have rolled out this option. Stock slices are essentially exactly what they sound like. One part of a much larger share sold at a proportionate price.

Using stock slices, investors can invest in high share price companies like Tesla and Amazon with much smaller amounts of money. Sometimes as little as $1 is all that's needed.

In the remainder of this article, we'll be looking at exactly how to buy $100 of Tesla stock slices using the well-known platform, Robinhood. It's easier than you might think!

Robinhood Free Training

We put together a free 30 minute video training that walks you through the entire process, step by step. This training will help you get up and running in no time at all.

GET THE GUIDE

Step by Step Guide to Robinhood Fractional Shares

Step 1

Using the search feature, enter TSLA and select Tesla. Alternatively, you can enter any other company that you would like to buy fractional shares of.

tesla search

Step 2

In the bottom right corner, select 'Trade'. This should bring up three different options including 'Buy', 'Sell', and 'Trade Options'. In this case, choose 'Buy' since we are trying to acquire shares.

tesla trade

Step 3

Next to 'Number of Shares', you can enter the quantity you want to purchase down to the decimal, with a minimum of 0.0001 shares.

If you want to invest a certain amount of dollars as opposed to shares, you can switch to "dollar mode" by clicking on the top right corner. From there, you should be able to enter your desired dollar amount ($100 for example) and have the share quantity calculated for you.

tesla 100

 

Step 4

Once you have the amount you want entered correctly, click 'Review' and swipe up to submit.

tesla queued 2

 

Step 5

Congrats! Once the order is processed, you will officially be a part-owner of Tesla.

To sell fractional shares, use the exact same process described above, but select 'Sell' instead of 'Buy' in Step 2.

Summary

When it comes to investing, every dollar counts. Don't let yourself be discouraged by high share prices when you can participate in the market with as little a dollar. Fractional shares can help small to mid-size investors maintain good diversification in their portfolios and opens up greater opportunities.

Robinhood makes the process especially simple as demonstrated in the steps listed in this article.

Whatever dollar amount you're investing in the market, take pride in the fact that you're on the path to a better financial future. You don't need to invest in large amounts, you just need to be consistent!

Article written by J. Thomas
JT graduated with a degree in Personal Finance from a Big Ten university. Since then he has worked as a Financial Planner with a nationally recognized RIA. In his free time, he enjoys playing basketball, spending time outdoors, and traveling abroad.

Latest Posts

Power Your Investing

Choosing the right product and service is essential for your investing. Here are some of the tools and services to help your portfolio grow.
Robinhood
Robinhood provides an easy-to-use free trading platform for beginner investors. Robinhood has $0 account minimums. Get a free stock when you open an account below.
Try Robinhood
M1 Finance
M1 Finance offers a free investing platform where users can build portfolios of stocks and ETFs. Users can also choose from a variety of pre-built portfolios offered for free.
Try M1 Finance
Fundrise
Passively invest in private real estate deals with as little as $500. Fundrise allows you to own residential and commercial real estate across the U.S. starting at a 1% annual fee.
Try Fundrise
© Copyright 2018 - 2020 Investing Simple LLC. All Rights Reserved. Investing Simple is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual. Members should be aware that investment markets have inherent risks, and past performance does not assure future results. Investing Simple has advertising relationships with some of the offers listed on this website. The information on Investing Simple could be different from what you find when visiting a third-party website. All products are presented without warranty. For more information, please read our full disclaimer.
Developed by Stallion Cognitive
magnifiermenucross-circlechevron-down-circle
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram
Copy link
Powered by Social Snap