Tesla (TSLA) could race higher.
For one, this Thursday, shareholders will meet to vote on a 3:1 stock split proposal.
While stock splits don’t add any intrinsic value, they can make powerhouse stocks, like TSLA even more attractive at less cost.
“We believe the stock split would help reset the market price of our common stock so that our employees will have more flexibility in managing their equity, all of which, in our view, may help maximize stockholder value,” Tesla said. “In addition, as retail investors have expressed a high level of interest in investing in our stock, we believe the stock split will make our common stock more accessible to our retail shareholders.”
Two, demand for electric vehicles is still accelerating all over the world.
In fact, according to Bloomberg, “The U.S. is the latest country to pass what’s become a critical EV tipping point: 5% of new car sales powered only by electricity. This threshold signals the start of mass EV adoption, the period when technological preferences rapidly flip, according to the analysis. For the past six months, the U.S. joined Europe and China — collectively the three largest car markets — in moving beyond the 5% tipping point. If the U.S. follows the trend established by 18 countries that came before it, a quarter of new car sales could be electric by the end of 2025. That would be a year or two ahead of most major forecasts.”
Once TSLA gets approval, and splits its stock 3:1, it could easily attract a lot of buyers.