Let us discuss that
Tesla, the automotive and clean energy company.
The company is one company that might consider another stock split.
Tesla stock trades for nearly $300 per share
At his level, the stock can be unaffordable for certain prospective buyers
When a company increases its outstanding shares while keeping the total market capitalization unchanged, is known as stock split.
Stock split does not have any impact on existing investors rather it become more affordable to some group of investors.
Suppose you currently hold 10 shares of a company priced at $100 per share
The company enacts a 2-for-1 stock split.
In this case, your ownership will increase to 20 shares, each valued at $50, yet your investment remains the same.
Tesla has split its stock twice over its 14 years as a publicly traded company
The most recent one, a 3-for-1 split, happened in August 2022
Tesla stock split again at $900 per share in 2022.
Tesla stock traded at approximately $2,250 per share when the company did a 5-for-1 stock split in 2020.
Tesla (TSLA) set a record for deliveries in the first half of the year with about 889,000 EVs delivered through June 30, 2023.
Its Model Y sports utility vehicle became the world's best-selling car with about 267,200 vehicles sold in the first three months.
Tesla's revenue jumped from $16.8 billion to $19.9 billion, or 18%, in its first quarter of 2023 compared to its first quarter of 2022.
Tesla is trading at a P/E ratio of 83, which is higher than the S&P 500 P/E ratio of 25.
No doubts Tesla Stock is a good to have in your portfolio for long term.
However, it is currently more expensive than the other related stocks such as Rivian (RIVN)
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