Tesla announced on Friday (5th) that it will implement a 3-to-1 stock split plan following the US stock market on August 24th, and will trade at the post-split price at the opening of August 25th.
Tesla held a shareholder meeting on Thursday (4th), and the overwhelming majority of shareholders voted to agree to Tesla’s 3-to-1 stock split plan, followed by Tesla’s announcement of more details on Friday.
Tesla announced that shareholders of record as of August 17, 2022 will receive 2 additional shares for each Tesla stock they hold, and the stock split will be executed following the market on August 24, and the market will open on August 25. trade at the post-split price.
Tesla went public at $17 a share in June 2010, and the last time it performed a stock split was back in 2020. Tesla shares were trading at around $1,300 a share at the time, and the plan to split into five shares sent its shares soaring to a record high of $2,000 a share.
After the stock split, Tesla’s share price fell to around $460 per share, giving it a market value of regarding $430 billion. For retail investors, Tesla’s stock price became less of an unattainable value, and Tesla’s share price grew fairly quickly, roughly doubling in value over the next year.
Tesla’s stock split will be 3-1 following the market closes on August 24, rather than the previous 5-1, but Tesla’s shareholders have approved a new round of stock split plans on Thursday, which has so far not boosted Tesla’s share price. soaring.
Tesla (TSLA-US) fell 6.63% to $864.51 a share on Friday, down regarding 27.94% this year. Digging out why, most of the risks that weighed on Tesla’s stock price earlier this year remain, including supply chain disruptions, U.S.-China tensions, and a legal battle between Musk and Twitter.
In addition, Citi analyst Itay Michaeli believes that Tesla’s stock price is overvalued, the stock is in an over-inflated state, and the stock price may fall by more than 50% in the future.
Michaeli is bearish on Tesla’s outlook, mainly due to doubts regarding Tesla’s self-driving technology and a possible economic slowdown. Citi reiterated its “sell rating” on Tesla with a price target of $424.
