Tesla Looks to Split Stock Again After Nearly Two Years
Tesla announced on Monday that they would request shareholder approval in order to do the ‘ole fashion stock split, in order to pay dividends. Shares of the company rose 8% Monday as a result of the news. There’s nothing quite like riding the liquidity hype train all the way to just insane earnings multiples (Tesla is currently trading at a 221). Which brings me back to an oldie, but most certainly goodie of a tweet back in August 2020 when Tesla announced a 5:1 stock split, sending the stock nuclear afterwards.
With their valuations being stretched quite literally as far as physics will allow, Tesla’s Chief Accounting Officer and Chief Financial Officer dumped over $3 Million in shares at the beginning of the month. The company is permitted to issue 2 Billion shares. There are currently 1 billion shares outstanding.
Now back to August of 2020, when Tesla announced their 5:1 stock split, the share price went absolutely parabolic as a result. This was also amidst a rumored gamma squeeze nuclear price action fiesta that took place here, if my memory serves me right.
Tesla is once again looking to ride the proverbial liquidity hype train, after Amazon did so in stunning fashion, sending the stock up 21% since their announcement (albeit theirs came with a healthy stock buyback also).
Things are looking up for the company, with deliveries posting positive results even amidst supply chain constraints and the semiconductor shortage which will seemingly go unsolved. Although Elon did mention that he apparently has COVID again…REST UP KING.