According to an SEC filing, Tesla is looking to enable a stock split and will seek approval at its annual shareholder meeting this year to increase the number of authorized shares of common stocks.
The last time Tesla had a stock split was in August 2020 with a 5-for-1 split. Since then, the shares have more than doubled.
Why would a company do a stock split?
We have seen big companies like Alphabet and Amazon splitting their stocks. Some of the benefits of a stock split for investors include easier portfolio management and also lowering the barrier of entry for investors with smaller capital. As for financial performance, the stocks usually outperform the market over the next several years based on a study carried out by Rice University.
NASDAQ: TSLA Daily Chart
If we look at the TSLA chart on the daily timeframe, we can see that it has had a winning streak and bagged gains of more than 30% after breaking through its bearish channel with significant momentum. The rally did not stop even when the company announced a production halt in its Shanghai gigafactory due to covid lockdowns.
Trading at 1090 at the time of writing, it is well-positioned to continue its advance and test 1200 all-time-highs. From a manufacturing perspective, another bullish confluence for Tesla is the greater-than-expected delivery number in Europe and China where it exceeded consensus by more than 15%.
What are your views on Tesla?
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