TSLA - Tesla just made a 5 to 1 Split

Tesla during the early Feb 2020 had made a high of $968  which bottomed to a low of $350 during the lock-down because of Covid-19 pandemic. But since then it made all time high of $1794 around July 13, 2020 when some key businesses had been opened. The historic rise was also due to the fact that Electric vehicles had been hyped throughout all multi media channels adding the good revenue of Tesla and its turn around into massive production after the injection from the US government. Almost throughout the entire pandemic the talk of the day is about electric car and Tesla is the number 1 being talked about skyrocketing the value of the company with a capitalization of $264.37B making it 6.6 times greater than General Motors sitting at $40.042B. This made Elon Musk to become the 5th richest man in the world with a net worth of $74B surpassing Warren Buffet.

The catalyst of the its move was significantly due to the fact that it had surpassed the analyst prediction of Wall Street. During its 2nd quarter where in the analysts have predicted only a delivery of 20K vehicles, Tesla made a surprising delivery of 90K vehicles. Its loss of $1B last 2019 had now been a turn around of a net income of $197M. Musk had delivered despite all the negative criticism and oppositions from Wall Street itself and the Billionaires from the auto industries. Tesla has now become the leader in the electric vehicles and would even become the leader of the entire auto industry, if the rest of the other gas-fueled vehicle manufacturers could not make or compete with Tesla's dominance. It's giga factory for batteries that would enable its car to run not just 200miles before re-charging but run a million miles is phenomenal. Perhaps this breakthrough, would negate any other car manufacturers to take the lead as they are all falling behind now against Tesla.  

 And today, Tesla had just announced a 5:1 stock split which will enable its high price to be more affordable to retail investors and traders and even quintupling the shares of Big Fund managers and Insiders. It is currently sitting at $1,515.72 as of this writing. This maneuver by Elon Musk is a replica of what Apple had done with their high profile stock which had undergone a stock split to allow more buyers to take position. So if you buy 1 share at $1,500 of TSLA you will end up having 5 shares of $300.00/share. And most of the time, very good companies who makes a split would usually be able to carry the price again back to its former high after the split. Tesla has all the potential to do so when gas-fueled cars are later on going to be phased out against eco-friendly cars. And Tesla is even touted to probably hit $7,000/share. If you can position today or had already have a position, you are in for a bull ride.