Source: College University / Shutterstock.com
You’re here (NASDAQ:TSLA) the stock is about to end the week in the red after some nice gains. Fans and investors eagerly awaited the shareholders’ meeting, renamed Cyber Roundup. This meeting brought the updates that Wall Street had been waiting for weeks; the 3-for-1 stock split has been approved by Tesla shareholders. Elon Musk also touched on other aspects of Tesla’s business, such as the long-awaited Cyber Truck. On top of that, the company is ramping up production at its gigafactories in Berlin and Austin, Texas, despite recent shutdowns. Musk also hinted that the company may be able to announce another factory location later this year,” although he provided no further details.
Despite the positive news regarding the stock split, TSLA stock continues to fall today as the momentum that has driven it this week fades. However, it will likely resume in the coming weeks as anticipation mounts for Tesla’s stock split. Musk didn’t reveal a date for the split, but until he does, TSLA stock will have an imminent growth catalyst to push it higher. The shareholder vote isn’t the only good news for Tesla investors, however.
Let’s take a look at this week’s top Tesla stories that investors should read.
Top Headlines for TSLA Equity Investors
1. Tesla’s 3:1 stock split wins shareholder approval – here’s what it means for investors
As reported, the motion to split TSLA shares again received the approval it needed from shareholders. Few experts expressed doubts about the adoption of the motion. However, not that it’s confirmed, Tesla investors have something big to look forward to. A stock split does not fundamentally change a company,” notes InvestorPlace assistant news editor Eddie Pan. “Yet, retail investors may be more inclined to buy whole stocks at lower prices.” This logic carried TSLA stock to impressive gains leading to its stock split in 2020. It now looks set to embark on a similar growth trajectory.
Read more about this story here.
2. Elon Musk says inflation will go down. This bet has helped Tesla’s stock soar 45% since June
The stock split isn’t the only notable Cyber Rodeo event. Musk said he believed the peak of inflation had passed, but expected a “mild recession”, which could last up to 18 months. “The trend is down, suggesting we’re past peak inflation,” Musk said at the event at the Tesla gigafactory in Austin, Texas. “I think inflation is going to drop quickly at some point in the future.” This bet essentially assumes that the Federal Reserve will dampen the trend of sharp interest rate hikes. While TSLA stock has been rising since June, lower inflation could also help it rise.
Read more about this story here.
3. The Tesla Model Y is on its way to becoming the best-selling car in the world
It is well known that Tesla’s Model Y is the best-selling electric vehicle (EV) in the world. But according to Musk, he may soon have an even more impressive and important stat to report. As Electrek reports, “The electric SUV will be the world’s top-selling vehicle by revenue this year, and the company expects it to be the top-selling vehicle by volume next year once Tesla ramps up production at Gigafactory Texas and Gigafactory Berlin.To secure the title of world’s best-selling car, Tesla would have to topple the Toyota Corolla, which currently has 1,150,000 sales.
Learn more about the story here.
4. Tesla’s Cybertruck is going to be more expensive than originally expected
Investors and car enthusiasts are patiently waiting for the Tesla Cybertruck to hit the road. The Cyber Roundup brought an update, but it may not be what potential buyers were hoping for. Musk informed viewers that the futuristic vehicle will no longer be priced at $39,900 when it debuts in 2023. He still promises it will be “one hell of a product” but didn’t provide an exact figure for that. buyers can expect to pay for their Cybertrucks. . It’s unclear how much this update will affect sales when Tesla’s answer to the modern pickup truck finally hits the road.
Learn more about the story here.
5. Soaring electric car prices mean fewer buyers can use the tax credit
Last week, Tesla received good news when an environmental protection bill received unexpected support from the US Senate. The bill included an electric vehicle tax credit that would benefit companies like Tesla. However, some experts are speculating that rising EV prices mean fewer consumers will buy EVs in the near future, making the tax credit less effective for stocks like TSLA. Executive analyst Michelle Krebs of Cox Automotive says of EV markers: “To proliferate EVs, they must cost less and be accessible to more consumers, whether in terms of price and/or of incentives. In the future, car manufacturers are promising cheaper electric vehicles.
Learn more about the 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 publishing guidelines.
InvestorPlace