$Tesla Motors(TSLA)$Just trying to process how much of a positive catalyst this stock split is likely to be....I'm not expecting the huge run up we had after the last split but any opportunity for a lower sticker price on the stock is likely to attract a lot of buyers with smaller balances and enable more staff stockpurchases. Will be interesting for sure π
$Tesla Motors(TSLA)$One aspect of the split that is likely to be a positive catalyst is that options pricing will become a lot more accessible to retail investors. I'm expecting that options activity post split will grow significantly. It's just hard to quantify what effect this will have on the stock.
There will definitely be a rally. What is harder to predict is when and how severe the pull back will be after the rally. I'm personally just going to stay long the common stock. Overall the split is a bullish sign from Tesla that they expect the stock to either stay high or trend higher. Pair that with increased accessibility for retail investors and greater affordability of the options and you get an price upswing. It will be interesting to see the wording of the resolution of the shareholders vote as that is probably when we will have the earliest idea of what the split will look like. I'veseen speculation range between 5 to 1 and 20 to 1 so I guess we'll have to wait and see.
I'll be interested to see if this is reported anywhere else, perhaps with a copy of the email. It seems a little hard to believe for a company growing so quickly.