Is Tesla a buy after the stock split?
Tesla’s latest move, an upcoming stock split, should draw some new interest. As in the past 12 months Tesla shares has been on a roller coaster from its low of $620 to a high of $1200 due to negative investor sentiments that surround Tesla & Elon musk's embroiled in the highly sensationalised twitter take over.
Nevertheless there are some positivities for Tesla now & some analysts has accorded a re rating for Tesla to outperform/bullish. The short term price. target post split is $333-$360. Factors imputed in the price are as follows:
1)“improved production” from the company’s China Giga factory.
“unprecedented Model Y production in China” after a factory upgrade.
The analyst said Musk & Co are on track to produce over 1 million vehicles annually “out of this key artery.”
“For 2023 we believe 2 million deliveries potential and massive production capacity will be a significant advantage for Tesla in this EV arms race with competition coming from every angle and geography,” wrote Ive
2)a “green tidal wave” is a trend he expects to play out across the industry over the next decade leading to the “biggest transformation” in the auto industry since 1950s.
3)Tesla has come out with the production of its own battery & secure its own material like nickel in Indonesia.
4)The tax credit accorded to Tesla under the Inflation Act beyond the 200k sales will potentially increased sales
Finally I believe in the wake of stiff competition for a slice of the crowded EV market, I still believe Tesla will come out a winner because of its forward looking entrepreneur Elon musk & to date Tesla is the clear leader in the EV industry.
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