Have you looked at Apple and Tesla stock prices since the Stock Split was announced?
The stock prices of these two companies have remained unstoppable over the past two weeks since the split was announced. Apple costs $498 per share and Tesla costs $2,050 (both prices in USD).
Will this trend ever stop after the split or even before?
Is Tesla (TSLA) Stock Price Really Justified for Big Gains? Let’s get started.
Tesla Stock Overview
First of all, Tesla is one of the best technology companies in the world. The vehicles they produce are among the best in the industry with the highest customer satisfaction rating.
Tesla stock price since stock split announcement (1-month chart):
Tesla prices for the last year:
Stock market price since its creation:
Tesla quarterly financial results (most recent):
What are the factors driving Tesla stock higher?
Simply put, here are the factors that I believe are driving Tesla stock prices higher:
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Possibility of inclusion in the S&P 500 index. Remember that at present Tesla is not even part of the S&P 400 index, and its direct addition to the 500 index will be huge news and the index fund companies will have a few days to buy the stocks in their portfolios (in dollar terms, millions of Tesla shares will have to be purchased by the fund companies in the open market). With the most recent quarterly report, Tesla reported 4 consecutive quarterly profits, which is one of the basic criteria for inclusion in the S&P 500 Index. Besides profits, Tesla meets all other criteria to be added to the S&P 500 Index.
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Elon Musk, the genius and man behind Tesla, is extremely innovative and always delivers on what he says and promises. Tesla is miles ahead of its competitors. If you haven’t yet watched Cathie Woods, ARK Investments talk about Tesla, please do. BTW, ARK investments are one of the best fund companies with massive portfolio returns.
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Next is the news of the Tesla stock split itself, a 5-for-1 stock split. If you hold 1 share of TSLA today or before August 31, you will end up receiving 4 free shares on August 31, 2020. This drives the stock price up, a gain of almost 50% since the split was announced.
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The future of cars/automobiles is electric vehicles and Tesla is already in China delivering cars. As you may know, Tesla has the Giga Factory in Shanghai, China and is already delivering Model S cars. Production of the Model Y is expected to start early next year. Remember that China has hundreds of electric vehicle companies, but they are the cheapest and cannot be compared to Tesla and its technology. This year alone, Tesla plans to deliver 500,000 vehicles worldwide, with 2 million expected next year.
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The enormous potential of Tesla SOLAR panels in the future
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Tesla Cybertruck going out this year
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Tesla Insurance
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Tesla Battery Day – Million mile battery announcement (September 21, 2020)
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Tesla Autopilot – It’s huge. The company plans to eventually phase out vehicle deliveries and realize profits of $30,000 per vehicle through a network of robo-taxi.
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Tesla Giga factories in Germany, United States (Texas) and the United States (new factory identified)
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Tesla Roadster And Semi-truck
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Tesla Great computer
Now that was a huge list. I know. But that’s why Tesla stock is rising so much. People love the company and what Elon Musk does. Do you remember the SpaceX launch? He is not afraid to fail and succeed.
My personal take on Tesla stock? Should you buy?
First of all, I own Tesla stock as of today and have no plans to sell it anytime soon. Not until at least 2030. I believe in Elon and the company.
I will drive with Tesla. It’s one of the few innovative companies in the world at this valuation scale (9th largest company in the US) and it’s trying to do something good for the world through electric vehicles and solar energy.
You never know what Elon is thinking, he’s a go-getter. Just watch one of Tesla’s presentations or wait until Dough Day on September 22. He is a charmer and an extremely hard worker to make his dreams come true. The company is finally generating huge numbers profitably. I believe this is just the beginning.
I’m not here to recommend anything to anyone, it’s just me laying out my arguments and why I believe Tesla is the future of the world. Arrive early if you wish and get good feedback. As Cathie Wood says. she expects Tesla to be at $7,000 per share and 15,000% per coin over the next 7 years (bull case). Only time can answer this question.
Conclusion
As I said, Tesla is one of the best technological innovation companies in the world. There is no doubt about it. While innovation at Apple and Google is fading, this company still promises to surprise everyone with what it does.
Elon Musk, I believe, is just getting started. He has miles to go with this company. BTW, SpaceX is not part of Tesla and valuations.
I am a very proud shareholder of Tesla and I believe in the long term of the company. Thanks for reading, let me know your thoughts and comments below.
