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Tesla (NASDAQ:TSLA) 3:1 Stock Split effective Wednesday night. Begins Trading at new price Thursday.
Shares of Tesla, are up more than 2.1% in premarket trading Thursday following the company’s 3:1 stock split. The split took place last night and starts trading this morning.
A Wedbush analyst adjusted pre-split $1,000 price target to $360 reflecting the 3:1 split as well as improved production from Tesla out of its key China Giga factory during the September quarter with clear momentum heading into year-end. Ives notes that Tesla’s last stock split was a 5:1 split announced in August 2020.
Berenberg also adjusted its price target (to $290 from $850) to reflect the split. However, as Wedbush is bullish on TSLA, its analyst is neutral on the shares. He believes that China’s disruption risks, along with a still-high retail ownership, could drive volatility.
He wrote in a note, “We expect Tesla’s automotive gross margin to benefit as its production mix shifts away from Fremont, California, which suffers from high labor costs, an inefficient layout and relatively dated equipment. However, following demo drives, we envisage limited short-term potential from autonomous driving. To us, Tesla’s driver-assistance product represents a longer-term aspiration inconsistent with bold price increases and promises of near-term progress.”
