In this study, dieless drawing experiments of stainless steel SUS304 wires of 1 mm in diameter were carried out using a self-developed dieless drawing machine. In order to prevent oxidation, argon gas was applied to a self-designed chamber during dieless drawing processes. The effects of the forming temperature and the oxide layer on the mechanical properties of the drawn SUS304 stainless wires obtained by tensile tests are discussed in this paper. A finite element model considering the high frequency induction heating mode in the finite element software DEFORM2D was developed to conduct the heat transfer analysis and the formability analysis of the drawn products in dieless drawing of stainless steel wires. The effects of the drawing speed and forming temperature on the maximal reachable area reductions are discussed. Through the comparisons of the maximal reachable area reduction between the finite element simulations and experiments, the finite element modelling for dieless drawing processes was validated.