Tesla's Stock Split Has Taken Effect. Now What?

Motley Fool2022-08-26

KEY POINTSTesla stock just became two-thirds cheaper to buy, which is a bonus for smaller investors.Investors should be focused on the company's goal to produce 20 million cars per year by 2030.Tesla ...

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Comments

Jess261
2022-08-27
Jess261
Okay
小虎一飞冲天
2022-08-27
小虎一飞冲天
Like pls
Alkid
2022-08-27
Alkid
Okay
ericbqlee
2022-08-27
ericbqlee
[smile]
fysx49
2022-08-27
fysx49
Like
ML808
2022-08-27
ML808
Interesting

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Now What?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2022-08-26 16:30 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2022/08/25/teslas-stock-split-has-taken-effect-now-what/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>KEY POINTSTesla stock just became two-thirds cheaper to buy, which is a bonus for smaller investors.Investors should be focused on the company's goal to produce 20 million cars per year by 2030.Tesla ...</p>\n\n<a href=\"https://www.fool.com/investing/2022/08/25/teslas-stock-split-has-taken-effect-now-what/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"TSLA","symbol_name":"特斯拉","start_time":0,"source_url":"https://www.fool.com/investing/2022/08/25/teslas-stock-split-has-taken-effect-now-what/","article_id":"2262954967","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2262954967","pubTimestamp":1661502632,"columns":[],"sourceInfo":{"source_id":"fool_stock","name":"Motley Fool"},"weMediaInfo":null,"summary":"Tesla's 3-for-1 stock split is now live, but investors should be focusing on the company itself.","collect":0,"end_time":0,"defaultTopTitle":"fool.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"TSLA":"特斯拉"},"translate_title":"特斯拉的股票分割已经生效。现在怎么办？","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"TSLA":1},"content_text":"KEY POINTSTesla stock just became two-thirds cheaper to buy, which is a bonus for smaller investors.Investors should be focused on the company's goal to produce 20 million cars per year by 2030.Tesla has plenty of cash and is highly profitable, so it can continue to invest in growth.Electric vehicle powerhouse Tesla is the latest in a string of high-profile technology companies to execute a stock split this year. At the close of trading on Aug. 24, the company's 3-for-1 split went into effect.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. The move is designed to make Tesla stock more accessible to smaller investors, which could broaden the company's shareholder base.It's important to remember the stock split is entirely cosmetic and that it doesn't add any value to the company itself. Instead, investors should remain focused on Tesla's long-term potential -- especially since there's so much of it.Image source: Getty Images.The road to 20 million electric vehiclesTesla is the world's leading manufacturer of electric vehicles. Its success comes not only from the popularity of its cars but also the precision of its production processes, which has allowed the company to rapidly scale and remain dominant even while expanding into new countries.In 2017, Tesla delivered 101,312 electric cars. 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It's an ambitious goal, but history proves that sort of growth is well within the company's wheelhouse, and it has the financial performance to deliver it.Tesla could cross $100 billion in revenue next yearNaturally, Tesla's revenue growth has been just as impressive as its growth in production and deliveries. 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.In 2023, the company is expected to generate over $100 billion in annual revenue for the very first time, but there's an even more exciting story beneath the surface of that number.For the 2021 full year, Tesla had a gross profit margin of 29.3% on its electric vehicles. It was a big jump from 25.6% in 2020 and 21.2% in 2019. The figure has increased even further to 30.4% in the first half of 2022. Why does that matter? 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.A higher gross margin typically gives the company more money to invest in initiatives like new gigafactories, or it could simply result in more money flowing to its bottom line, which would add to the $18.3 billion cash pile Tesla is currently sitting on.Buy Tesla stock for the company, not the stock splitFor all of the reasons mentioned above, investors should focus on Tesla as a company rather than inconsequential factors like its stock split. But there is one caveat to buying the stock for investors who have shorter-term goals.Over the past four quarters, Tesla has generated non-GAAP (adjusted) net income (profit) of $11.3 billion, which translates to $9.89 in earnings per share. That places the stock at a price-to-earnings multiple of 90, which is three-times higher than the Nasdaq 100 technology index's multiple of 27.2, for example. In other words, Tesla is relatively expensive right now.But if the company manages to add a dozen gigafactories and can produce 20 million cars each year by 2030, then it should be worth well beyond its presently lofty valuation, so there will likely be gains on the table for long-term investors in that scenario.For smaller investors, the stock split does offer an opportunity to buy Tesla stock now for significantly less outlay than was previously 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