Tesla’s long awaited stock split has finally turned into a reality

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Tesla’s (TSLA) 3-for-1 stock split next week will favor retail investors as you can now own shares of Tesla at a lower price per share. For existing shareholders of Tesla, they will be getting two additional shares for every one share that they own at the closing of the market on August 24. Shares of the split-adjusted price will be tradable by August 25.

The question now is, will Tesla’s stock price be affected by the stock split? Since the shares are more affordable to retail investors, it can probably boost the price short-term.

What’s next? Should I buy because of a stock split? Just because the price has been reduced does not necessarily mean you must buy. Instead, take into consideration the overall fundamentals of the company.

Tesla accounts for 61% of the US battery electric vehicle market (BEV) and 26% of the global industry. Its revenue is forecasted to rise by 57.5% year on year to $84.8 billion. According from Valuates Reports, Tesla is expected to expand at a compound annual growth rate (CAGR) of 18.2% through 2030, making it the supreme leader of the world’s EV market.

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