KlipC reports: After the news of Tesla's planned stock split on Monday, local time, the company's stock price rose sharply by 8.03%, which is worth mentioning that this is another major market capitalization company that has recently attracted more investors through stock splits.
KlipC's Andi Duan said: "If the plan is approved, it will be equivalent to the company's second stock split since 2020. Mr. Duan noted that in August last year, the company implemented a spin-off plan.
The Tesla split is also to show the company's confidence, the market is expected to split the stock may reach 5-10 or 10-1, in the past two years Apple, Nvidia, Tesla have completed the stock split, and Amazon and Alphabet also announced plans to split the shares.
Goldman Sachs analysis in an interview with KlipC said that the stock split is actually just a form of reducing the stock, out of the stock price depreciation and the increase in the number of shares unexpectedly, almost will not have any impact on the company's value, and generally good for the company's stock price.
So will this stock split stage a strong trend?
Alex Su, an institutional member of KlipC, said: "After Tesla's first stock split, its stock price rose 37% in a week, and the stock price was close to $1900, and if the stock split is completed, it may attract more investors to participate." ”
He added: "As the overall market interest in electric vehicles continues to heat up, this is actually a wise move, so many investors who hold Tesla shares believe that the stock price has a lot of room to rise in the short term." ”
Citi analysts said that "Tesla stock will become more attractive once the stock split is completed, and we are optimistic about Tesla's performance in the next 12 months." ”
However, some analysts disagree, in his view, Tesla's stock split will only significantly reduce its stock price, making unsuspecting retail investors more attractive, which may fuel the bubble of Tesla stock.