Split-to-Spark a Tesla Rally?

$Tesla Motors(TSLA)$ announced on 28 Mar 2022 via Twitter that it seeks investor approval to increase number of shares to enable a stock split, and it sparked a 5% rally, before inflation, rate hike and geopolitical worries fizzled out that rally.

While we can debate the merits or pitfalls of such a move, coming less than 2 years since the 5-1 split, what matters most might be the price action or market generated information of TSLA stock.

Rally and Dally

From the split-adjusted Daily chart (below), TSLA’s stock split ignited a massive rally of ~80% from date of split, 31 Aug 2020. However, since its all-time-high (ATH) in early Nov 2021, stock price has dallied into a downtrend (red channel), forming lower highs and lower lows (LHLL) and now at the lower end of the channel.

Vaulting over a Wall of Worry

The real worry is if price were to break this downtrend channel, it could trigger 'waterfall' selling (red down arrow), with price correction of between ~39 to 43%, as happened at least twice previously. However, if a stock split could incite a rally, price might just rebound (green up arrow), first vaulting over the top wall of the downward channel, before taking off on a massive run-up to new ATH!

While 'history does not repeat itself, it rhymes' as the saying goes. It means while not the same, similar patterns as what happened after the first split might reoccur for TSLA stock price, a rally of over 80% perhaps?

How to Spark a Rally, EM-style?

Elon Musk is quite a maestro influencer as many have noted, and this stock split might just be his latest masterstroke to electrify TSLA stock prices, and spark the next monster rally for $Tesla Motors(TSLA)$, in my view!