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from Tesla (NASDAQ:TSLA) the winning streak continued this week, with the electric vehicle (EV) leader boosted by several growth catalysts. For one thing, a sweeping climate bill including tax credits for electric vehicles was introduced in the US Senate yesterday. Following this, Kimbal Musk – Elon Musk’s brother and a Tesla executive – also bought 25,000 shares. His TSLA holdings now stand at more than 536,000 shares. Even with the recent insider trading allegations, TSLA stock is rising following news of this big buy.
There’s also more to add to the momentum. Specifically, on August 4, Tesla shareholders will vote on a proposed stock split. Given the resounding success of the first Tesla stock split, it will likely be approved. In particular, tech stock splits have been a major theme this summer. This potential TSLA split, however, promises to be one of the biggest of the season.
Let’s take a look at this week’s top Tesla stories that investors should read.
Top Headlines for TSLA Equity Investors
1. Electric vehicle tax credits are back — and bigger — in the Senate’s new climate bill
As mentioned, the recent progress of a new bill in the Senate is great news for Tesla and other electric vehicle stocks. The bill doesn’t just mean continued tax credits for new EV buyers; it also means that buyers buy a used EV can get a tax credit. As The edge reports, the bill “would also remove the current cap of 200,000 vehicles before triggering a phase-out of the tax credit, a huge win for companies like Tesla,” Toyota (NYSE:MT) and General Engines (NYSE:GM). All three have “sold more than 200,000 electric vehicles”.
Read more about this story here.
2. Elon Musk sees inflation potentially down based on Tesla commodity prices
Tesla CEO Elon Musk says inflation may finally come down. Recently, Musk tweeted that “Tesla commodity prices tend to go down more than up,” suggesting that this may be indicative of the economy as a whole. As Electrek observes, this tweet came “a day after Democrats in the Senate announced they had reached an agreement on the ‘Cut Inflation Act of 2022’.” Lately, many pundits have commented on the surge in inflation, but there haven’t been so many comments on the trend slowing.
Read more about this story here.
3. Tesla Model Y shipments from Giga Texas are hitting their stride
It’s been a tough quarter for TSLA shares, but the company is still able to scale and grow. Although Tesla reported lower deliveries and overall growth in the second quarter, it has some good news to report. Specifically, the Tesla plant in Austin, Texas is “on track to hit the 1,000 vehicles per week mark” in the next few months or so. Gigafactory Texas appears to be shipping “more” of the popular Model Y. It’s a promising development, especially since Musk recently called Tesla factories “gigantic money furnaces.”
Read more about this story here.
4. Tesla will spend more to ramp up production at two new factories.
Gigafactory Texas isn’t the only way Tesla is growing. As The New York Times reports, the company is “increasing spending by approximately $1 billion to ramp up factories, develop new batteries and fund other projects.” According to a securities filing, Tesla expects capital expenditures (capex) “to be $6 billion to $8 billion in 2022.” That’s up from an April forecast of capex between $5 billion and $7 billion. This confirms the bullish case that Tesla is focusing on growth and taking the necessary steps to increase production after its turbulent quarter.
Read more about this story here.
5. Amazon, Apple, Google and Tesla have all done it. Here’s why companies are splitting their stocks.
Last on this list of news, the TSLA stock split is a must-see event of the summer for current and future Tesla investors. As noted, Tesla’s 2020 stock split resulted in significant growth, sending stocks skyrocketing. This summer, some of the biggest names in tech, including Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOGNASDAQ:GOOGL) — chose to split their shares, making the shares more accessible to retail investors. If approved, the TSLA stock split will likely provide a vital opportunity for new investors. Shareholders will vote on the TSLA stock split on August 4.
Read more about this story here.
At the date of publication, Samuel O’Brient held (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.
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