Tesla (TSLA) shares fell as the latest stock split took effect. Investors’ attitude toward TSLA stock looked different than the mood in the broader market, as the S&P 500 (SPX), Dow Jones (DJIA), and Nasdaq 100 (NDX) all notched gains.
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Although it is better known as an electric vehicle maker, Tesla also provides solar energy solutions. Its energy products range from solar panels to battery storage systems for domestic and commercial use. Tesla is the world’s highest-valued EV stock by market capitalization.
At What Price did Tesla Split?
Tesla stock went through a three-for-one split after the closing bell on August 24. The stock closed just above $891 before the split. It opened at $302.36 on August 25, the day it started trading on a split-adjusted basis. The stock edged up a little to hit an intraday high of $302.96, but in the end it fell 0.35% to close at $296.07.
The market reaction may be a sign of some investors taking short-term profit, considering that TSLA stock had rallied ahead of the split. The Elon Musk-led electric vehicle maker has now split its stock twice. The first split at the rate of five-for-one happened in August 2020.
TSLA Stock Price Prediction after the Split
On August 25, Morgan Stanley analyst Adam Jonas reiterated a Buy rating on Tesla. The analyst set a price target of $383.32 for the stock, which implies 29% upside potential to current levels. Jonas is a 4-star analyst with a 51.2% success rate in making profitable recommendations.
According to TipRanks’ analyst rating consensus, Tesla stock is a Moderate Buy based on 19 Buys, five Holds, and six Sells. The average TSLA stock forecast of $314.58 implies 6.3% upside potential.
Final Thoughts
The slight dip in Tesla shares after the latest split may be more about investors taking profits than doubting the stock. A split can make a stock more affordable to retail investors, which could increase its demand and lift the price.
Indeed, Tesla stock is a favorite of small investors. TipRanks’ Stock Investors tool shows that retail investor sentiment is currently Positive on Tesla. In the past 30 days, 2% of the best-performing portfolios tracked by TipRanks increased their exposure to TSLA stock.
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