Tesla(TSLA)shares are set to split for the second time in the past two years. The electric vehicle maker had been proposing a possible split since early this year, which was approved by shareholders during the company's annualmeetingon August 4, 2022.
The shares are to be split on a 3-for-1 basis, meaning investors will receive an additional two shares for each one they already own. The company's last stock split was on a5-for-1 basisin August 2020.
The Tesla stock split took place after the market's close on August 24.
The split won't affect Morningstar's view on the company, whichsenior equity analyst Seth Goldsteinvalues at $760 per share. After the split, the company's fair value estimate will be adjusted to about $255 per share to account for the increase in the company's outstanding share count, according to Goldstein.
The company'sMorningstar Economic Moat Rating of narrow, which means it has a competitive advantage versus their rivals, will be unaffected by the split.
Tesla's stock will also keep a Morningstar Rating of 3 stars following the split, but at a slight premium of 14% as of August 23, which is still within a range that Goldstein views as fairly valued.
The company's shares rallied in the past few weeks on news that an agreement was reached to pass the Inflation Reduction Act, which was signed into law by President Joe Biden on August 16.
"Tesla could work with suppliers to incentivize the buildout of processing plants in the U.S., but this would likely take years before the company could secure enough battery materials for the majority of its vehicles to qualify,'' Goldstein says.
Other Stock Splits
Tesla is one of several tech and consumer companies that have set out to split their shares this year. Market leaders Amazon.com(AMZN)and Alphabet(GOOG)(GOOGL)have already split their shares in the past few months. Cybersecurity firm Palo Alto Networks(PANW)willsplit its stockon September 14 on a 3-for-1 basis.
FAQs
Tesla has completed a 3-for-1 stock split, which saw investors receive two additional shares for each one they already owned when markets closed on August 17, 2022. The new shares were distributed after the closing bell on August 24 and Tesla began trading on a split-adjusted basis when markets opened on August 25.
How much will Tesla shares be after the split? ›
Before Tesla split in 2020, the stock was trading in the range of $2,200. After the five-for-one exchange, the share price dipped down to about $440. In 2022, the three-for-one split shifted the price of TSLA from $900 down to $300. Today, TSLA trades around $200 per share.
What is the 3 to 1 stock split for Tesla? ›
Each stockholder of record on August 17, 2022 will receive a dividend of two additional shares of common stock for each then-held share, to be distributed after close of trading on August 24, 2022. Trading will begin on a stock split-adjusted basis on August 25, 2022.
What will Tesla stock be worth in 2030? ›
He forecasts Tesla stock to gain about 550% to hit $1,200 a share by 2030, and for SpaceX to triple in valuation over the same period, according to a recent interview conducted by Bloomberg. Baron runs the Baron Focused Growth Fund, which counted Tesla and SpaceX as its largest holdings as of December 31, 2023.
What is a 3-for-1 stock split? ›
A 3-for-1 stock split means that for every one share held by an investor, there will now be three. In other words, the number of outstanding shares in the market will triple. On the other hand, the price per share after the 3-for-1 stock split will be reduced by dividing the old share price by 3.
What is the target price for Tesla in 2024? ›
2024, the price of Tesla shares is $178.11. Outlook for 2024. TradersUnion anticipates that by the end of 2024, Tesla's stock price will continue the uptrend and reach $838.52, mirroring sustained investor confidence and EV market growth.
What was Tesla's highest stock price ever? ›
Historical daily share price chart and data for Tesla since 2010 adjusted for splits and dividends. The latest closing stock price for Tesla as of May 15, 2024 is 173.99. The all-time high Tesla stock closing price was 409.97 on November 04, 2021.
Is a stock split good or bad? ›
It's basically a draw, and the value of your investment won't change. However, investors generally react positively to stock splits, partly because these announcements signal that a company's board wants to attract investors by making the price more affordable and increasing the number of shares available.
Has Tesla ever paid a dividend? ›
Tesla has never declared dividends on our common stock. We intend on retaining all future earnings to finance future growth and therefore, do not anticipate paying any cash dividends in the foreseeable future.
Is Tesla stock a good buy? ›
Tesla stock has retreated about 30% in 2024. However, since Tesla reported first quarter earnings and revenue on April 23, it has rallied and is finding support at its 50-day moving average, according to MarketSurge analysis. Tesla stock hit a 52-week low of 138.80 on April 22.
It's unlikely Tesla's returns going forward will come anywhere near resembling the last five years. So, investors shouldn't expect a $1,000 price per share by the end of the decade.
What if you invested $1,000 in Tesla 5 years ago? ›
If You'd Invested $1,000 in Tesla 5 Years Ago, Here's How Much You'd Have Today. I won't keep you in suspense. The answer is: $8,862.79. That's how much money you'd have today if you had invested $1,000 in Tesla (NASDAQ: TSLA) stock five years ago -- and it's a pretty nice return, right?
How much is $10,000 in Tesla stock 10 years ago? ›
If you invested $10,000 with founder Elon Musk 10 years ago, your stake would be worth $2.1 million now. That works out to a more than 70% average annual return. The same $10,000 put into the S&P 500 during that time grew just 274% to $37,376. That's just 14% compounded annually.
Is it better to buy stock before or after a split? ›
Do stock splits benefit investors? – It's nice to own more shares after a split, since the reduced per-share price might mean there's room for greater potential price growth.
Do stocks usually go up after a split? ›
The split procedure is, therefore, a way to make stocks seem cheaper and more affordable. As a result, the number of stocks increases, and their price drops proportionally.
Which stock is splitting in 2024? ›
Nvidia says the stock split will happen at the close of the market on Friday, June 7, 2024. Provided you were a shareholder of record who owned common stock as of the close of the market on Thursday, June 6, you'll then receive an additional nine shares of NVDA for every share you previously held.
What was Tesla's stock price when it split? ›
Tesla shares closed on August 24 at $891.29 and began trading on a split-adjusted basis at around $297 per share. Stock splits are believed to improve liquidity by making the stock more accessible to more people – particularly individual retail traders with less money to deploy.
What is the prediction for Tesla stock? ›
TSLA Stock 12 Month Forecast
Based on 32 Wall Street analysts offering 12 month price targets for Tesla in the last 3 months. The average price target is $174.60 with a high forecast of $310.00 and a low forecast of $22.86. The average price target represents a -1.95% change from the last price of $178.08.
What is the stock price prediction for Tesla in 2025? ›
Tesla Stock Prediction 2025
The Tesla stock prediction for 2025 is currently $ 227.26, assuming that Tesla shares will continue growing at the average yearly rate as they did in the last 10 years. This would represent a 27.81% increase in the TSLA stock price.
Will Tesla raise prices in 2024? ›
Tesla, Inc.
TSLA will raise the prices of all Model Y vehicles in the United States. Per the company's website, prices of all Model Y cars will increase $1,000 on Apr 1, 2024, in the country. All the trims qualify for a $7,500 federal tax credit in the United States.
