Tesla Inc's shares take center stage on Thursday after the world's most valuable automaker split its stock for the second time in as many years to woo more ...
A stock split does not affect the fundamentals of a company, but makes it easier for individual investors looking to do small trades. Register now for FREE unlimited access to Reuters.com
After a $280 billion rally since late May, · The latest split comes close on the heels of similar moves by · Shares of the Elon Musk-led company fell 12% through ...
'The core of an investment will always rest on the competitive position of the company, its financial strength, management acumen and then...
Not one of those changes in the case of a stock split." Amazon carried out a 20-for-1 split for exactly this reason in the summer," said AJ Bell investment director, Russ Mould. "Although this is a constant tug-of-war between the bulls and the bears, as a divisive stock with a CEO who is no stranger to controversy, most analysts on Wall Street are optimistic on Tesla with a majority of buy recommendations on the stock." Terming a split "just a cosmetic exercise and one that in no way changes the fundamentals of the company, or the investment case for it," Mould said the core of the investment case still rests "on the competitive position of the company, its financial strength, management acumen and then valuation. Elon Musk's Tesla stock has attracted a high level of interest from retail investors, and the stock split makes it easier for them to invest. To reflect the stock split and improved production in China after recent lockdowns, broker Wedbush has set a 12-month price target of US$360.
Tesla's stock price is set to drop at the opening bell Thursday, but not because of anything Elon Musk tweeted about demand for electric vehicles, ...
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Tesla's 3-for-1 stock split is now live, but investors should be focusing on the company itself. Electric vehicle powerhouse Tesla (TSLA -0.04%) is the ...
That places the stock at a [price-to-earnings multiple](https://www.fool.com/investing/how-to-invest/stocks/price-to-earnings-ratio/) of 90, which is three-times higher than the Nasdaq 100 technology index's multiple of 27.2, for example. The company's gross margin has steadily climbed alongside the number of cars it has produced, which means as Tesla grows larger and makes more cars, it's also becoming even more profitable. Between 2017 and 2021, the metric expanded at a compound annual rate of 46% and based on analysts' estimates of $83.9 billion in 2022 sales, that growth rate will accelerate to 56% this year. For investors, that growth has coincided with a more than 1,100% gain in Tesla stock over the past five years. It means the number of Tesla shares in circulation increased threefold, which has cut the price of each share by two-thirds, from $891.30 to $297.10. Tesla is the world's leading manufacturer of electric vehicles.
After the 3-to-1 split, Tesla's shares were trading at about $302, a third of where they stood prior to market open. Shares later fell to about $296. Investors ...
Prior to a drop over the past week, the stock had risen more than 13% since a month ago. That drop is in line with each of the three major stock indexes, [a Nasdaq study](https://www.nasdaq.com/articles/3-compelling-reasons-for-companies-to-split-stocks-2019-09-12) that examined stock splits at large companies between 2012 and 2018. It also indicates confidence that the share price will eventually rise to a level near or surpassing where it stood before the split. Investors received two additional shares for each share they held prior to the split. Over the past month, Tesla stock has surged, rising more than 6% as of early trading on Tuesday.