Hello all. On August 5th, 2022, Tesla announced its already approved, 3 for 1 stock split. Each stockholder who is on record as of August 17, 2022 will receive two additional shares of the tesla stock on August 24, 2022. As of August 25, 2022 every stock holder will begin trading with the new adjusted stock split.
At the time of making this post the stock price is $900 meaning we can expect the price of the stock to go to around $300 after the split.
This will be a 66% drop or in other words 66% cheaper purchasing price. Definitely this will be a more comfortable range for small investors to purchase a pice of the company.
From the technical standpoint, we can picture a bear flag on the weekly timeframe with a potential downwards move pointing towards the $350 range. Weekly RSI is reaching its overbought territory and the volume remains rather bearish than relatively bullish due to the decline in volume.
If the price falls to $300 and then goes back up to at least where it is now, the price per share will increase by 200%.
In the link below find answers to common questions regarding this event.
So you are expecting the price to be 2700 presplit? A stock split shouldn't affect TA. It just makes it cheaper (more buying can occur) and options to be cheaper. Stocks aren't Crypto. Tesla won't gain over 1.8 trillion in valuation in a couple of months. I'm a tesla bull but this doesn't add up.
EdgarTigranyan
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@Ramihaddadin, thanks for the comment. Please explain where you got the $2700? At the time of making the post the price was $900. 3 for 1 split makes it a $300 per share.
Ramihaddadin
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@EdgarTigranyan, Yes the split would make it $300 but you stated that it will go back to the $900 mark after the split (meaning 2700 presplit, a 200% increase from 900)
EdgarTigranyan
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@Ramihaddadin, what is the price target you believe we will see after the split ?