FV Tesla Stock: Buy Now Or Wait Until After Stock Split?

Video Length: 00:12:43

Is Tesla stock way overvalued after announcing its first-ever stock split?

How do stock splits impact the company valuation and the stock price before and after the split? Am I adding the TSLA stock to my portfolio and if so, at what price? Do I even have any Tesla shares left in my portfolio since I last covered them here? And what type of investor should be looking into adding the Tesla stock to their portfolio? That’s right. My investment strategy should be different than yours because we likely have a different risk tolerance, are in different financial situations and have different financial goals for ourselves and our families.  

In this video, I analyze the TSLA stock from 5 points of my signature Invest Diva Diamond Analysis (IDDA) which analyzes any asset from 5 points: fundamentals, technicals, market sentiment, risk assessment and overall how it can fit in your portfolio, and of course, my most recent price targets. 

Tesla skyrocketed another 14% after announcing its 1st-ever stock split. On August 28th, each Tesla share will split into 5: if you own 1 share trading at $1.5K, you'll suddenly have 5 worth $300. 

Apple just announced its 5th stock split since 1987 beginning of August too, so Tesla appears to be following Apple’s footsteps when it comes to marketing. I talk about the Apple stock split in this video so make sure you check it out.

Why Do Companies Split Stocks?

Companies split their stock to make it appear cheaper for regular investors to buy shares which are just a play on our emotions because, in reality, you can invest in any stock no matter how pricey it is, using fractional purchase options that most brokers offer. The only thing that’s different is that in most cases, you can’t set buy limit orders if you’re purchasing fractional amounts. So the stock split does have some merits for value investors or those who follow dollar-cost-averaging methods — but splits don't change a company's overall value. The Tesla pizza pie will be cut into smaller slices, but it’ll still be the same amount of pizza.

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Disclaimer: Investing in the financial markets involves a risk of loss. You should only invest the money you can afford to lose.

Invest Diva (KPHR Capital, LLC) and Kiana Danial are NOT a ...

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