Why Tesla Stock Is Surging Today

Tesla Inc TSLA shares are trading higher Monday amid strength in EV stocks following Senate passage of the Inflation Reduction Act. 

The Senate passed the legislation in a 51-50 vote on Sunday. The Inflation Reduction Act features almost $400 billion in funding for climate and energy related programs over the next 10 years. It includes an extension of the $7,500 electric vehicle tax credit and a new $4,000 tax credit for used EVs priced below $25,000.

The bill is now headed to the House, where it's expected to be passed within the week before being sent to President Joe Biden’s desk.

Related Link: Senate Passes Inflation Reduction Act: 'One Of The Defining Legislative Feats Of The 21st Century'

Last week, Tesla's board approved a three-for-one split of Tesla’s common stock in the form of a stock dividend to make stock ownership more accessible to employees and investors.

Each stockholder of record on Aug. 17 will receive a dividend of two additional shares of common stock for each then-held share, to be distributed after close of trading on Aug. 24. Tesla stock will begin trading on a split-adjusted basis on Aug. 25.

TSLA Price Action: Tesla has a 52-week high of $1,208 and a 52-week low of $620.57.

The stock was up 4.63% at $904.66 at press time, according to data from Benzinga Pro.

Photo: courtesy of Tesla.