For the second time in two years, Musk’s Tesla has split its stocks. The stock is to split by 3 for 1 and was to take effect at the close of yesterday’s trading day, 24th of August, 2022. Due to the split, the share price of Tesla closed at $302 per share.
On the 19th of May 2022, we published an article where we made a forecast that Tesla’s share price will fall to $600. As of the time of publishing the article, Tesla’s share price was $709. Immediately after our forecast, Tesla’s share price dropped to $620 after which it began to rally. We are correct to say that our forecast reached its mark only that this 3:1 split has disrupted the price as Tesla is now trading at $300 per share.
According to our analysis, following this stock split, Tesla’s share price might range around $300 psychological level for the next few months. This means that we don’t see Tesla’s share price reaching $400 this year.
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