What happened
Shares of Tesla (NASDAQ: TSLA) went up on Thursday, up more than 7% from 15:00 EDT.
The stock’s gains build on recent momentum since the announcement of an upcoming five-for-one stock split. This momentum and an overall bullish day for growth stocks (such as Tesla) are likely behind the rise of the stock on Thursday.
Image Source: The Motley Fool.
So what
Shares of Tesla have been on a tear lately. The stock has now risen nearly 800% in the past 12 months and 24% in the past five trading days alone. Investors – and even some analysts – have welcomed the company’s upcoming action split, betting that it will demand more demand for the stock at a time when many retail investors are turning to individual stocks. This divided momentum for the future seems to be continuing today.
Although the difficult split is likely net one of the main reasons that Tesla stock will rise on Thursday, one headline that could have a slightly positive impact on price action today comes from the Asian news website Nikkei. The news website reports that Panasonic has plans to invest more than $ 100 million in battery production capacity at Tesla’s plant in Nevada next year. In addition to improving production capacity at the factory, the company upgraded the storage capacity of the batteries it makes in September by 5%, according to Nikkei.
Well what
Tesla’s company recovered quickly from factory outages earlier this year. The company recently re-initiated its pre-COVID guidance for this year’s 500,000 car deliveries, up from about 368,000 deliveries in 2019.
Tesla shares will launch on August 31 on a five-for-one split-adjusted basis.
