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I have a high-elf wizard with the Fey Teleportation feat. According to the feat "You learn the Misty Step spell, and can cast it once without expending a spell slot. You regain the ability to cast it in this way when you finish a short or long rest."

Does this mean I can cast Misty Step additional times using spell slots? As a wizard, do I need to have the spell prepared in order to cast it using a spell slot?

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Yes

You learn the misty step spell and can cast it once without expending a spell slot. You regain the ability to cast it in this way when you finish a short or long rest.

Since it says you learn the misty step spell I would argue that you can then use it with other spell slots as well.

This is reinforced by the fact that it says "You regain the ability to cast it in this way...". If it was only intended to be a once per long or short rest ability it should have said "You regain the ability to cast it...".

Further evidence can be found by looking at the feat Magic Initiate:

Magic Initiate

Choose a class: bard, cleric, druid, sorcerer, warlock, or wizard. You learn two cantrips of your choice from that class's spell list.

In addition, choose one 1st-level spell from that same list. You learn that spell and can cast it at its lowest level. Once you cast it, you must finish a long rest before you can cast it again using this feat.

And this question about it:

If you have spell slots, can you use them to cast the 1st-level spell you learn with the Magic Initiate feat?

Yes, but only if the class you pick for the feat is one of your classes....In short, you must follow your character’s normal spellcasting rules, which determine whether you can expend spell slots on the 1st-level spell you learn from Magic Initiate.

Sage Advice Compendium v2.2 p. 8

This confirms that you can use spell slots to cast spells that you learn from feats, which is what happens in Fey Teleportation.

However this does also bring up the restriction that the spell, in this case Misty Step, would have to be on your class spell list in order to use it by using spell slots.

Additionally, prepared spellcasters would have to have Misty Step prepared in order to use it using slots.

Any other restriction or conditions of casting for your class also apply as normal.

This answer from the Sage Advice Compendium suggests that maybe prepared casters would not be able to use these known spells as prepared ones:

If a druid takes the Magic Initiate feat and chooses detect magic as their one spell, can the druid cast that spell as a ritual?

A druid’s Ritual Casting requires a ritual to be prepared. The spell from Magic Initiate is known but not prepared.

Sage Advice Compendium v2.2 p. 3

Jeremy Crawford has confirmed that these feats work using the same ruling as MI here.

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  • \$\begingroup\$ If this character was a sorcerer or other spontaneous caster, would "you learn the misty step spell" be sufficient to allow them cast it with their spell slots? Or is that different enough to warrant its own question? \$\endgroup\$ – Paladin852 Dec 1 '17 at 19:27
  • \$\begingroup\$ @Paladin852, I would recommend making that a comment to the original question. It seems like it could be addressed within this. \$\endgroup\$ – Pyrotechnical Dec 1 '17 at 19:31
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    \$\begingroup\$ Huh. I was gonna answer the other way, but I think you might be right. It does say you learn the spell. That means you should be able to cast it using spell slots, provided those spell slots belong to a class that has Misty Step on its list -- so Sorcerer, Wizard, and Warlock, but not Cleric or Bard. \$\endgroup\$ – Darth Pseudonym Dec 1 '17 at 19:41
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    \$\begingroup\$ @Rubiksmoose The class lists are what they are, the only way anything gets added to a class list is if you have a feat or ability that specifically say it does (such as domain spells or warlock's expanded spell list). And if you wanted to cast Misty Step using slots, you do have to prepare it (if you have to do that). I mean, you know the spell, but it doesn't say it's always prepared. \$\endgroup\$ – Darth Pseudonym Dec 1 '17 at 19:48
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    \$\begingroup\$ Oddly enough, I was almost of the opinion that RAW the spell is castable by spontaneous casters (because they only need to know the spell to cast it) but not by prepared casters (because preparing and knowing are different, and they prepare spells from their spellbook rather than from memory) But according to the wizard's description, the spellbook is the "repository of spells that you know" so I believe that the spell would actually be added to the spellbook as well, without the gold and time investment that usually accompanies adding a new spell to it. \$\endgroup\$ – Paladin852 Dec 1 '17 at 19:54

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