Will Tesla stock split cause a rally?

Bonta
2022-03-30

Frankly, I do feel silly answering this question...

Imagine that I originally sell a 1kg packet of sweets at $50 and 1 sell 0.1kg of sweet at $5. Which will the kids buy... $50 worth or $5 worth. [Facepalm] 

$Tesla Motors(TSLA)$can't be measured in terms of conventional fundamental figures. How high will it go, frankly I have no idea and I do not intend to touch until I can figure out a way to properly value it.

However, by making the stocks cheaper through stock split, the potential investor pool will increase. Let alone those who are using options who are currently keeping out due to the high premiums or margin required. 

With stock split, there will be greater potential for Tesla to grow further. Conventional valuation aside. Furthermore, through the stocksplit, "dividends" will be given. Add on the new European plant that's commenced operations.

The force is strong in this one... 

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  • Vandaluus
    ·2022-03-30
    Why do I get the feeling that the latest proposed stock split is a gimmick to keep the market capitalisation up, rather than spending time improving the bottom line as a whole for shareholders?
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    • SunshinekimReplying tobernardtayet: 
      Fully concur. Not sure if it is just market movements or real fundamentals. So Im trading cautiously!
      2022-03-31
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    • bernardtayetReplying toBonta: 
      If a company is hard to value and share price is influenced by one man, trade with extra caution. Sharing my views only.
      2022-03-31
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    • Bonta: 
      [Surprised] i didnt want to say it out. [Applaud] the timing is coincidental with china factory shutting now. Part of the reason y tesla is hard to value is due to musk’s tweets and announcements
      2022-03-30
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  • tinkie
    ·2022-03-30
    I believe this is good news if it is more than enough to split.
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    • Bonta: 
      Splitting in general is gd news. More investors can join in
      2022-03-30
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    • tinkieReplying toBonta: 
      Yes, it lowers the threshold for investors, which I also like.
      2022-03-30
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  • Philipoo
    ·2022-03-31
    Good! Like please
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    • JJQ: 
      👍
      2022-03-31
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  • cheezzy
    ·2022-03-30
    Tesla is a stock that's been bringing me a lot of gains lately and I like it!
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  • Tradehub
    ·2022-03-31
    Yes will rally for a few days right after stock split with alot of retail investors buying. Then the early investors will sell to take profit, and the price will go down by some margin again. Repeat.
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  • KYHBKO
    ·2022-04-01
    while there are no fundamental changes during a stock split, this does make the stock more "affordable" to retail investors.  With value investing, I had to value Tesla differently.
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  • Lynn098
    ·2022-04-01
    Every stock split makes the dollar value of a single stock cheaper, attracting new retail investors.
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  • megapaul
    ·2022-04-01
    Yes in answering the question. It can be very challenging to valuate such companies so just buy and ride along the market sentiment, little by little.
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  • 88wlam88
    ·2022-04-01
    👍 fully agreed, though split won’t increase the value, affordility will better position the availablility which helps boasts the demand, plus possible ‘dividend’ would help drive the price higher..
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  • Kitty Intel
    ·2022-04-04
    Like the $50 vs $5 comparison.
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  • StayHome
    ·2022-04-01

    Stock split and let more kids be able to buy more sweets at lower price .... [Smile] [Miser] [Victory] [USD] 

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  • SkyLim
    ·2022-03-31
    ok. thank you for the tips. benefits all definitely
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  • KenKen88
    ·2022-03-31
    awesome. [Like]
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  • Zikangtng
    ·2022-04-01
    With the strong push for EV, regardless of the stocksplit, Tesla has potential to rise further
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  • Philipthean8
    ·2022-04-01
    It will made the stock look cheaper but Actually fundamentally still the same
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  • whitewolf69
    ·2022-04-01
    already has on the announcement
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  • HuatGirl
    ·2022-03-31
    Waiting for the best
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  • 小可爱0958
    ·2022-03-31
    期待着再下下下点进场现在价格太高了。 [无语] [无语]
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  • Nanamoney
    ·2022-03-31
    Am holding till the announcement out. On bullish too currently not selling at all. Average should the price went further down before the final news
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  • Jenny_Li
    ·2022-03-30
    Yes, history showed rally
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