Tesla (NASDAQ:TSLA) stock is in focus today after the company confirmed Aug. 17 as its date of record for the upcoming 3-for-1 stock split. After the split, shareholders on record will receive an additional two shares of TSLA stock which will be distributed after the market close on Aug. 24. The two shares will be received as a dividend. Based on current prices, shares of Tesla will trade in the $300 range following the split, which will be effective come the morning of Aug. 25.
The electric vehicle (EV) company cited further accessibility of shares as its reason for the split. Currently, retail investors hold more than 45% of TSLA stock.
Tesla last split shares during 2020. The stock soared higher by more than 80% from the time of the announcement to shares trading on a split-adjusted basis.
Let’s get into the details.
Dear TSLA Stock Fans, Mark Your Calendars for Aug. 17
Shareholders recently approved the proposed stock split at Tesla’s annual meeting of stockholders. The proposal specifically asked shareholders to approve increasing the number of authorized shares by 4 billion.
At the meeting, CEO Elon Musk also gave his outlook on the economy and offered details on the Cybertruck. The CEO believes the market will experience a “relatively mild recession” for the next 18 months. However, Musk believes that inflation has peaked as well. Meanwhile, Musk expects the Cybertruck to enter production during mid-2023. The truck will carry different specifications and pricing than the model first previewed in 2019.
Finally, the CEO hinted at the possibility of a TSLA stock buyback, although he did not confirm it.
Senate Passes Climate Bill, Benefitting Tesla Adoption
In recent news, the Senate voted to pass the Inflation Reduction Act over the weekend. The legislation will “unlock some $370 billion in funding for clean energy and accelerate a historic shift in how the world is powered.”
The Future Fund Managing Partner Gary Black points out that Tesla vehicles were previously ineligible for the old $7,500 EV tax credit. Now, though, several Tesla models — such as the Model 3 and the upcoming Cybertruck — will be eligible for the credit.
Currently, EVs account for about 5% of new-car sales, according to Barron’s. History shows that this figure is a “tipping point” which has previously led to 25% adoption in four years.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.