TSLA stock split soon?

[Deleted member 11233]

I was watching for an announcement of a pending stock split when TSLA hit $1000/share. It didn't happen. One of the reasons for a split is to bring the price per share down to a level that the Average Joe can afford, but still not dilute the total value of shares already held. Maybe when it hits 1500?

Of course any rumors of a split will drive the share price up considerably. DISCLAIMER: I am not trying to manipulate the market to increase price by even discussing a possible split.

 

[Red61224]

Nope.

 

[Richard V.]

Nope.

I recall Elon saying no the this idea right now. I cannot remember where it was.

 

[Red61224]

I recall Elon saying no the this idea right now. I cannot remember where it was.

When asked at the recent shareholders meeting in Austin about splitting the stock he said "not now."

 

[Richard V.]

When asked at the recent shareholders meeting in Austin about splitting the stock he said "not now."

Right, thanks Mr. Potato Head we have it from Elon's talking head directly.
Is he/we a simulation?

 

[CyberT]

I was watching for an announcement of a pending stock split when TSLA hit $1000/share. It didn't happen. One of the reasons for a split is to bring the price per share down to a level that the Average Joe can afford, but still not dilute the total value of shares already held. Maybe when it hits 1500?

Of course any rumors of a split will drive the share price up considerably. DISCLAIMER: I am not trying to manipulate the market to increase price by even discussing a possible split.

Tesla closed @$1374 the day the announcement of a split was made. When Elon was asked about a future stock split recently, the price was sub 900. At that time Tesla stock would have to increase 50% to reach the levels of that last announcement. That is why I believe he said, "not now". It was way too early to talk about it but to your point, yes we are approaching the point where it is difficult for Mr. average joe to buy a share. Heck, even I now have to wait 2 months before I can afford to buy 1 share.

With this recent surge maybe that stock split will happen sooner.

 

[Ogre]

Tesla closed @$1374 the day the announcement of a split was made. When Elon was asked about a future stock split recently, the price was sub 900. At that time Tesla stock would have to increase 50% to reach the levels of that last announcement. That is why I believe he said, "not now". It was way too early to talk about it but to your point, yes we are approaching the point where it is difficult for Mr. average joe to buy a share. Heck, even I now have to wait 2 months before I can afford to buy 1 share.

Is this even an issue anymore?

I thought people just bought fractional shares if they couldn’t afford to buy full shares. I don’t think the big problem with owning Tesla is the share price any more.

Lots of people love splits, but they have little long term effect on the stock value. What they can be good at is shaking things up so that a bit of unrealized short term gains are realized.

Since we just “realized” a bunch of short term gains, I’d prefer they wait until the stock stalls out again.

 

[Richard V.]

Is this even an issue anymore?

I thought people just bought fractional shares if they couldn’t afford to buy full shares.

I don’t think the big problem with owning Tesla is the share price any more.

Hi Dennis, FYI I did not get this fractional share option when I got my Tesla shares here in Canada on the NYSE. I had to decide how many shares in US dollars I was aiming for, then convert them in Canadian dollars and had to agree and then I asked to set the price/limits/time on objectives for the transactions. The result is given the investment vehicle I used I could have maximize my yearly limit at the fractional level. No big lost, I used my tax free investment limit for smaller less costly shares (i.e., LEV.TO) that is Lion Electric.

 

[Ogre]

Hi Dennis, FYI I did not get this fractional share option when I got my Tesla shares here in Canada on the NYSE. I had to decide how many shares in US dollars I was aiming for, then convert them in Canadian dollars and had to agree and then I asked to set the price/limits/time on objectives for the transactions. The result is given the investment vehicle I used I could have maximize my yearly limit at the fractional level. No big lost, I use my limit for smaller less costly shares (i.e., LEV.TO) that is Lion Electric.

That’s my bad then for thinking in US only terms then. I was just thinking about Robinhood and I think there is 1 or 2 other companies which let you buy fractional shares.

If share price does genuinely get in the way of small investors then I think it’s a good idea.

 

[Crissa]

They can make unrealized losses also show up.

-Crissa

 

[Ogre]

They can make unrealized losses also show up.

-Crissa

Now that can be really awkward

I see splits as a bit of short term market lubrication. If the underlying growth isn’t there, they can be a huge mess. If a company splits and then there is a big reversal later on, they can end up delisted which is a huge disaster.

I don’t think that’s a concern with Tesla, but it’s something to be cautious about.

 

[CyberT]

Is this even an issue anymore?

I thought people just bought fractional shares if they couldn’t afford to buy full shares. I don’t think the big problem with owning Tesla is the share price any more.

Lots of people love splits, but they have little long term effect on the stock value. What they can be good at is shaking things up so that a bit of unrealized short term gains are realized.

Since we just “realized” a bunch of short term gains, I’d prefer they wait until the stock stalls out again.

I think it is more of a psychological barrier for Mr. average Joe or new investors with a small amount to start investing with. I pump TSLA to co-workers and family but the large dollar amount per share somehow changes the way they perceive value. It is difficult for a new investor to take a leap of faith when they are first understanding the company with $1000 vs $200. The point for me is to get their toes wet and then encourage them to continue building their position over time. When a stock is $1000 it is hard to imagine much more of an upside vs a stock that is at $200. Now you and I know that looking back a year from now $1000/share is going to be a bargain.

 

[swengl]

I think it is more of a psychological barrier for Mr. average Joe or new investors with a small amount to start investing with. I pump TSLA to co-workers and family but the large dollar amount per share somehow changes the way they perceive value. It is difficult for a new investor to take a leap of faith when they are first understanding the company with $1000 vs $200. The point for me is to get their toes wet and then encourage them to continue building their position over time. When a stock is $1000 it is hard to imagine much more of an upside vs a stock that is at $200. Now you and I know that looking back a year from now $1000/share is going to be a bargain.

One way to combat the mental block is to show them the stock value over time and the meteoric rise and then explain all of the unrealized potential the company still has. One of the biggest hang-ups I've seen with folks is the fact that they still think of Tesla as only an "automobile" company when clearly, it is so much more.

 

[CyberT]

One way to combat the mental block is to show them the stock value over time and the meteoric rise and then explain all of the unrealized potential the company still has. One of the biggest hang-ups I've seen with folks is the fact that they still think of Tesla as only an "automobile" company when clearly, it is so much more.

Well stated. Easy for us to understand that since well at least for me I live and breathe Tesla news.
The truth is that at least for the people I speak to us that they are lazy and don't want to do the research for themselves and then are surprised to hear how well tesla is doing

 

[Throwcomputer]

buy fractional shares.