Cliff Notes: WHAT DOES TESLA'S NEW STOCK SPLIT MEAN FOR INVESTORS? - podcast episode cover

Cliff Notes: WHAT DOES TESLA'S NEW STOCK SPLIT MEAN FOR INVESTORS?

Apr 04, 202213 min
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Episode description

In this Cliff Notes we spoke about Tesla’s new stock split and what it means for investors. #tesla #stock #investing 


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Transcript

Speaker 1

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Speaker 2

Let's start off with Tesla. Off with Tesla.

Speaker 3

So, Tesla announced stock split today, which was interesting because they just split their stock fifteen months ago five to one. I believe it was a five to one stock split. Yeah, and since then, Tesla stock has doubled. Now it's at close to eleven hundred dollars right now. It was up eighty four dollars today on news of the stock split happened. Potential, yeah, potentially, but it looks like it's going to happen. Amazon Google

just announced their stock split one. So first let's start off with this because this was the talk of the stock market today and my brother Wall Street Trappers shot the trap. He called me today on the FaceTime and he was like, you know, I know y'all got market Monday, and I know it's gonna be a big show, so I just want to make sure y'all talk about, you know,

the dividend. He made a post like when they said, like the dividends is not actual dividends, like how you look at how you think about like a regular stock dividen It's gonna be dividends in the form of just more more shares. So he wanted me to say that to the public.

Speaker 2

Appreciate your trap.

Speaker 3

Facetimed met and thought that that was something that you know, people needed to know. So, yeah, how do you feel about this test?

Speaker 2

Tesla stocksplit?

Speaker 4

I mean, just so if the initial speculation of it, obviously we saw the stock go up so anybody that's been investing in Tesla, you know, like we have, it's just like, all right, great, just be interested to see what the ratio is going to be. I know the last one is five to one. We've seen Google obviously do twenty to one. We see Amazon do something similar, So I'm interested to see what the rate will with

the rape ratio is going to be. Also, they have to get the approvals, right, so that's why we said it is proposed, but that approval won't come to the fall, and so we have a few months before we can even decide on whether you know, it's a lot of people like should I get in before the splitter? First we got to get the votes, and that we won't know that into the fall. So, I mean, Tesla is already one of those those stocks that we said we're long term in, and that's that's not going to change.

Obviously if it does split, better entry points for people who haven't gotten in, but for us who are already invested.

Speaker 2

All right, let's have this thing short term roup and see how long. Cango Ian, what's your thoughts on Tesla?

Speaker 5

Hopefully they'll do a ten and one split, so the stock double of course, it's been picking Red Panda stock Club forever, so for those of you who have held Onto, a great job. But I think they need to do a ten to one, very strategic move by Elon because then I think he can start to push And I told stock Club this earlier. If you do a ten to one split, now you can make the argument that you should be in the Dow and that the value of Tesla for the American stock market and the American

economy is central to our growth. It's more valuable than Ford and GM. Now they can push into the Dow thirty. I think it would be a great move for them to do. So I'm hoping for ten to one split.

Speaker 2

Well they get the votes. It's a little bit of.

Speaker 5

Gesturing and posturing on Elon's part, but he's campaigning well and I think it will happen in the next year or so.

Speaker 4

Yeah, the ten to one puts them in a one hundred and thirty something dollars range. And so again, when Josh Brown gave us that gem, and like like most stocks that are in the doubt, they actually trade himtween that range and so obviously turn to one out would get them there.

Speaker 2

So interesting insight right there.

Speaker 3

Yeah, that's one of the reasons why stock split is because you know, obviously it makes it more appealing for retail investors. But also we talked about indexes, and you know that helps as far as the institutionals buying, institutions buying them, you know, pensions, hedge funds, different things in that nature. It just gives it more exposure on that once once you get added to that index. So definitely, you know a ten to one, a ten to one

split would be very appealing. I think the retail investors that would that would price it a little more than one hundred dollars the ship. So you know, anybody that one hundred dollars for Tesla stock, if you looked at what has done over the last couple of years, you would think that that would be something that's appealing. Another thing I forgot another thing that Trap wanted me to mention is that I think he said that they have Germany.

They have a plant in Germany and they're gonna produce a million cars in Germany.

Speaker 2

So yeah, he want to me to talk about that. Even in the day of the news.

Speaker 4

Today, they still put a hulk on their factory in Shangka for four days over COVID. But the inverse of that is if right, so we see Amazon doing a twenty.

Speaker 2

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Speaker 2

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Speaker 1

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Speaker 4

Split which will bring them down. They could potentially be added to the Dow. You have Google which could potentially be added or not Google tested that potentially be added. When they get added, they're going to be two companies that have to be removed. And so if people are looking as a hag le trying to find us a place to put, we should be looking at the companies in the Dow that aren't performing at the best right now right because if those two are coming, we know two got to leave.

Speaker 5

Do that homework right now, so everyone and please put the two companies that probably will get replaced. If Tesla and Amazon going, it's always a game of who is the better player in that space, and can you get disrupted and moved out for a better company.

Speaker 2

Yeah.

Speaker 4

Yeah, So I mean those whoever, I mean, there's the companies now probably know who they are right like, they're watching like them they do this ten to one. We know well on our way out, and so that's that's the interesting side of it as well.

Speaker 3

Yeah, and it's a way to kind of fight against a major stock drop. Also because it's like a thousand is kind of lofty. It might not be worth that. It could easily drop to you know, five hundred, that's fifty percent drop, but tend of one starts goes to one hundred dollars. Psychologically, that's that's way more reasonable than one thousand dollars. I will say this, Tesla is not Amazon or Google. Just keep that in mind. I do

believe in Tesla. I think that they're a very important company than one of the most important companies in the world. But there's a big difference between Tesla and Amazon and Google.

Speaker 2

There's a big difference.

Speaker 3

So just don't don't think that they're all the same because they have they have you know, high stock prices right now and they might potentially split. Be careful with Tesla because it's still a very volatile stock and.

Speaker 2

It's not. It's not Google and it's not I.

Speaker 4

Don't know how ye different can make it very simple like they're not those two.

Speaker 2

Yeah.

Speaker 5

Yeah, I want to tell you guys, for those of you that are still holding Tesla through your target, I did update. Thirteen forty seven is the area that you, guys, if you're the in it now can look. If you're on a trade top can look to get out. I'll put the price in the stock club early as well with everyone. Thirteen forty seven twenty eight is the area where you can look to it if you have a trade there.

Speaker 2

All right, Keith, let's let's get into this conversation to what we're talking about.

Speaker 6

Fellas I'm hearing they bit Tesla talk. Man, Listen, I could just say this, I like the way my portfolio looking today. Yeah, I can't say that about every other day, You understand me, But I can't say. You know, first of all, thanks for having me on Man's legendary Platfue legends and.

Speaker 2

Welcome to the Welcome to the hip Factory.

Speaker 6

Yeah yeah, what I wanted to talk about, man number one. I know y'all covered a little bit about you know, the BA y C boys understand me. But I think it's important because they're creating a case study for being leaders in the space. You know, and anytime you have leaders in the space, they influence everything that comes after them.

Speaker 2

You understand me. And you know what we did last year.

Speaker 6

We had a lot of predictions on this show, a lot of education, and I was just about to say one hundred and nineteen percent of everything that we said came true.

Speaker 2

Understand me.

Speaker 5

I'm just scooted a little bit closer to the mike to people saying the things. They set up your.

Speaker 2

Voices a little low.

Speaker 6

Yeah, So you know, now we at this place where you know, this board at y'all club, it was six people that came together. Before they came together, they didn't even have a million dollars.

Speaker 2

You understand me.

Speaker 6

From what I hear.

Speaker 2

You understand me.

Speaker 6

There wasn't on the radar, They wasn't influencers, they didn't have large platforms. What they did was take advantage of a space that they know was coming. They took advantage of the hype around it, the influence everything that was happening, and they decided to execute One of my chief sayings is interact with opportunity. Don't react to success right now. We are reacting to the success right and because of their success now they did became they get to become leaders of the movement.

Speaker 3

My graduates from my school being forced.

Speaker 2

Drop bag, drop Mike, drop back, drop drop.

Speaker 7

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