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🚗 Tesla stock split: not in a hurry to buy⠀
💰 Elon Musk is trying to increase the investment attractiveness of his core business. Now for $1000 you can buy 3 shares of Tesla Inc (NASDAQ: TSLA): the world leader in the electric vehicle industry has completed another stock split.
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Technically, the split does not affect the value of company or price of underlying assets − it is simply an indicator of the growing influence of retail investors. For example, during the pandemic, a similar procedure was carried out by Alphabet, Apple,
Amazon.com.
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But no matter how much one share costs, to make trading decisions, you need to analyze the fundamental indicators of the business.
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Buying back Tesla shares during pullbacks always gives a great profit. Despite problems with supplies from China and a sharp rise in commodity prices, the company's shares added 32% in July alone, the best result since the beginning of the year. Tesla was supported by a strong second-quarter financial report, a bullish trend in the US tech sector, and the Biden administration's climate change law.
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Tesla's stock valuation has always been a problem. Some investors see the premium at which Tesla's stock trades as too high compared to shares in more lucrative competitors such as Toyota Motor (NYSE: TM). But Tesla is not only cars, it is a whole range of new technologies, including full autonomous driving (FSD), solar panels and the
Optimus robot. If at least one of these directions will bring success to the company, it will be able to generate incredible profits.
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Stock split is certainly the right move: a price cut per share stimulates interest in Tesla from enthusiasts of the technical development of the world according to Musk's scenarios. But while Elon is at war with Twitter in court, the rally in Tesla shares will still slow down. So we do not recommend opening new positions, and those who are already in the market need to pull StopLoss closer to the price. There will be positive news from Musk − then we will buy it. In the meantime, you should refrain from active actions.
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Profits to y’all!