Tesla, Inc. TSLA announced Friday a 3-for-1 stock split that would be paid out as a stock dividend on Aug. 24 to shareholders on record as of Aug. 17. The stock would begin to trade on a split-adjusted basis on Aug. 25.
Tesla shares ran up ahead of the announcement and have been quiet since then.
This is Tesla’s second stock split, with the first one announced on Aug. 11, 2020. The 5-for-1 split took effect on Aug. 31, 2020. Between these periods, the stock ran up by a massive 81% compared to a more modest 11% advance by the Nasdaq 100 Index, Future Fund founder Gary Black noted in a tweet.
The fund manager said the countdown started on Monday. The environment that prevailed then and now is different, he added.
Black, however, sees many catalysts over the next few months for the Tesla stock.
In an Aug. 2 tweet, the fund manager outlined the following as being key near and medium-term catalysts:
- S&P potentially upgrading Tesla’s debt rating in August
- Climate bill being made into law in September
- AI Day due on Sept. 30
- Twitter, Inc. TWTR deal overhang lifting in October
- Tesla potentially buying back stock in October
- More clarity on new Gigafactories in the U.K. and the eastern U.S.
- FSD beta release in the fourth quarter
- Cybertruck launch in the fourth quarter
- Robotaxi launch in 2024
Black has a $1,600 price target for Tesla stock over the next six to 12 months.
Tesla shares were down 2.19% to $852.19 on Tuesday morning, according to Benzinga Pro data.
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