, Tesla shares rose over 30% and edged close to $900. The stock split decision wasn’t official until the annual stockholders’ meeting this month.In Q1 2022, Tesla reported quarterly revenue of $16.9 billion — 42% YTY. Tesla’s Q2 2022 earnings beat most analysts’ expectations.
In many cases, a stock split doesn’t outperform the broader market until 1–3 years following the split. A study by “After brutal shutdowns in April/May due to the zero Covid policy, we are now seeing unprecedented Model Y production in China after factory upgrades with Musk & Co. on a pace to produce over 1 million vehicles annually out of this key product artery,” Wedbush analyst Dan Ives said in a note to clients on Thursday.
We are adjusting our pre-split $1,000 price target to $360 reflecting the 3:1 split as well as improved production from Tesla out of its key China Giga factory during the September quarter with clear momentum heading into year-end. Maintain Outperform rating.The Inflation Reduction Act’s new $7,500 tax credit for EVs could provide a growth spurt for Tesla, contributing to greater stock valuation and the company’s bottom line.