Have you heard anything about Tesla before? Do you have any idea about its stocks and shares that became a topic of people around the world? Well, if not, then this is the perfect opportunity for you! We will discuss Tesla and why its stock skyrocketed. Let’s start with defining Tesla.
What is Tesla Inc.?
Tesla Inc. refers to the American clean energy and electric vehicle company located in Palo Alto, California. The company produces clear and safe energy source equipment and tools that aid human beings in any purpose they pursue. Currently, Tesla Inc. has been producing and releasing products such as battery energy storage, electric cars, solar roof tiles and solar panels, and so many more. This growing company’s main goal is to provide human beings with safer and cleaner alternatives in consuming energy. In this way, the biological footprint we leave on this planet will not be too harsh for the environment and later on let us suffer from different natural disasters and pandemics as well.
Last year, the stocks of this company were reportedly skyrocketed. This means then that there have been a lot of people who got interested and bought their shares in the company. Given that, let’s find out the reasons why this thing happened. In this way, we’ll be aware and might as well learn from this event.
WHAT HAPPENED
Well, the shares of Tesla soared 74.2% way back in August, and on the last day, the stock was split five for one. Per split-adjusted share, it was closed out at $498.32. For the pre-split, the share price is $2,491.60.
On the other hand, it was reported that Panasonic increased its investment in the Gigafactory of Tesla by $100 million. This was done while the company encountered setbacks in China. Now, the reason behind this share price jump was because of the decision to split stock that became effective first on August 31.
Moreover, a stock split does not have any effect to the individual investors’ holdings value. With lots of brokers offering fractional shares, high sharp prices will not become the barriers to ownership. Still, investors are still talking about the plunk down of shares. This only proves that the company wants to entice more investments.
NOW WHAT
The investors of the company we’re currently taking their profits as Tesla shares went down around 20% in September. This is not surprising, and investors were pushed to buy carmaker’s stock for high valuations with an expectation of gaining a huge payday. Once these investments got paid off, there will be a high valuation to be left. With this, then, short-term investors are already getting out for gains protection.
Honestly, today is the perfect time to make an investment in Tesla. Despite the recent share price drops, the stock can have more value in the next years, and that means that gains can be possible. Besides, Tesla is not using the traditional metrics, so gains are expected right away as long as there are patience and expertise in stock management.