Tesla (TSLA) Shares rose Thursday ahead of the trading debut for the clean-energy automaker’s three-for-one stock split on the Nasdaq.
After a vote to approve the split in early August, two more shares were awarded to Tesla shareholders on Aug. 17 at the close of trading last night. Tesla’s overall market value remains unchanged from the split, but the price is adjusted to reflect the larger number of shares outstanding.
The segmentation follows a similar move by Google Original Alphabet (Google) earlier this summer left investors with a dividend payout from one Google share and 19 other shares worth about $120. Amazon (AMZN) completed a 20-for-1 share of its own in June.
Tesla itself carried out a 5-for-1 stock split in the summer of 2020, when the group’s shares were trading above $2,000 apiece as it prepared for inclusion in the benchmark S&P 500 later in the year.
Tesla stock was up 1.5% in premarket trading, indicating a split-adjusted opening bell price of $301.51 each.
scroll to continue
Tesla CEO Elon Musk told investors at the group’s annual meeting last week that he expects to reach a production rate of about 2 million vehicles per year by December, complementing existing facilities in Shanghai. Indicates the construction of a new Gigafactory. Berlin, Austin and Fremont.
The update followed stronger-than-expected second-quarter results at the end of July, where the group reiterated its target for full-year delivery growth, despite pressure on input prices and falling profit margins.
Tesla said it expects full-year deliveries to rise 50% from 2021 levels, meaning the target of 1.4 million vehicles, which Tesla CFO Zachary Kirkhorn said, “has become more difficult, but is possible with strong implementation”. Is.”
However, China’s “zero-Covid” health policy reduced Tesla’s production in the second quarter, while planned maintenance work at its Shanghai plant led to a sharp drop in sales and exports from the world’s largest auto market in July.
The China Passenger Car Association (CPCA) said on Tuesday that Tesla sold 28,217 Chinese-made cars last month, of which about 19,756 units were exported to other markets.
The numbers represent a sharp drop from June’s 78,000 units sold, although the drop is related to a production shutdown in Shanghai that kept the plant idle for most of the month as it switched to different systems to accommodate a weekly allow unit expansion. plays the device. coming months.