Tesla faces a new division of shares, after two years in which the value has gained 148%, although experts consider that it is a short period of time for that split to occur in which each of the shares of the company of Elon Musk will become 3 from next August 25, next Thursday.
But this process has officially started this week, on the 17th. It was the last day to register and receive two shares for each one they owned on that date, a week later. The other key date is August 24, as seven days after the cutoff is when Tesla shares really split. At the close of that stock market session, their titles will be divided 3 to 1 and the following day, the registered shareholders will multiply their Tesla shares by three, although with a lower value.
Already Thursday the 25th is the date of listing and first trading of Tesla shares already adjusted to that division. If, for example, they were trading at 910 dollars, now they will have a value somewhat higher than 303. We will not know what that price will be until next week.
If we know what the current one is and what its evolution is, favorable up to the quarter and negative in the year. Thus, Tesla shares recover 6.06% in the last week and their monthly earnings are close to 12%. Already in the three preceding months the recovery is decided, with gains that exceed 28.5%. In the year, the falls exceed 13.7% but in the year-on-year period the recovery has already reached 35.42%.
Factors such as the news on Twitter and those related these days to the “joke” about Elon Musk’s interest in Manchester United are affecting the value in the market. The split is expected to act as a shock especially among retail investors, as they understand that prices will be more manageable to enter the value for individuals.
All this while Tesla prepares to reach one million electric vehicles produced and delivered in 2022, despite the problems of the supply chain that have affected them, of the components and their shortage and of the closures due to the Covid 0 policy. in China. The opening of its gigafactories is in the spotlight.
Regarding recommendations from TipRanks, it is evident that Tesla is the company in which there is more diversity of opinion regarding its evolution among analysts. With target prices that differ by up to 532%, from 1,580 to 250 per share, with an average price of 904 dollars per share, which leaves no upward margin for the value. Of the 30 experts who follow Tesla, 18 opt to buy, 5 to hold and 7 more to sell their shares in the market.
From Citi, its analyst Itay Michaeli considers that its shares are overvalued by the market, and with a sell recommendation, it establishes a target price below half of its shares in the market: 424 dollars. He considers two clearly negative factors. On the one hand, he shows his skepticism with the evolution of autonomous driving technology since Tesla and also because his actions are not taking into account a deepening economic slowdown.
For his part from Argus, expert Bill Selesky has lowered the PO of Tesla shares to $1,123 per share from the previous $1,313, although he maintains his buy recommendation on the stock. All this despite the fact that he expects strong revenues and higher gross margins in coming quarters in the company’s results.