On that note, Tesla (NASDAQ: TSLA) gave its shareholders the news that it is preparing a three-for-one stock split at the close of trading on August 24, where TSLA holders will be given a ‘dividend’ in the form of two additional shares. Technically, August 25 should be the first-day TSLA will be trading at a third of its price. At the time of writing, the shares are worth $900, so if a 3-for-1 split occurred now, each share would be worth roughly $300. Furthermore, a study carried out by Bloomberg found that firms announcing splits typically beat the market by 16% over the next year.
TSLA chart and analysis
With regards to Tesla’s performance in the market, both the short-term and long-term trends are positive, with TSLA being one of the better performers in the automobile industry. In the last month, TSLA has been trading in the $710.93 to $940.82 range, with technical analysis indicating that a support zone is in the range of $864.50 to $869.62, while the resistance line is at $910.22. Meanwhile, TipRanks analysts rate the shares as a moderate buy, seeing the average price in the next 12 months reaching $876.24, –2.65% lower than the current trading price of $900.09. Notably, the previous stock split Tesla performed was in August 2020, after which shares gained over 80% from the announcement to shares trading on a new split-adjusted basis. With TSLA gaining 25% over the past month and over 40% since its 52-week low, it will be hard for the shares to repeat the same 80%+ performance; yet, investors should not count out a solid performance by TSLA stock since it has happened numerous times before. Buy stocks now with Interactive Brokers – the most advanced investment platform Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
