Tesla shares are up over 50% since the split announcement on Aug 11, 2020.The question is, should you get in on Tesla now? Has the good news already been priced in the stock and will if fall after the split?
Tesla (TSLA) gets a 71% increase from Wedbush Securities “With the China growth story, Tesla could now have $35+ of earnings power by 2025/2026 vs. our prior estimate of $20-$25,” Ives also said. Tesla Model 3 will produce higher margins than the same vehicle in the U.S. and European markets.
You don’t get any investment value advantage buying shares after or before or after a stock split. When shares have become expensive, an investor may be more at ease purchasing shares at lower cost shares post- split. There is a high demand for EV and going forward there will be a high penetration of these vehicles into the market.
We can’t say what will surprise us next about Elon Musk and Tesla, but usually whatever news comes out about Elon Musk’s visions is usually groundbreaking and has already been priced into the stock. Tesla is certainly a company that is on the forefront of new technologies, both on the ground and up in space.
On other news- Tesla’s Battery Day is a highly anticipated event. Teslas’s pilot battery production line is on its way to being finished and prepared for production. Make sure to watch CEO Elon Musk on Twitter as the Tesla’s Plaid Model S, and the Plaid Model X, may be debuted at Battery Day.