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Daniel Ives Raises Tesla Bull Case Price Target To $2500

Tesla 5-1 stock split has taken over the investment world by surprise as several analysts are now back to their drawing boards to predict where the stock price of the electric vehicle giant is most likely headed after the 5-1 stock split, and battery day.

Presently trading above $1600, Tesla market cap. is shockingly back above $300 billion for the first time since over 10 trading days.

A stock split does exactly what it sounds like: One share gets split up into multiple shares, with no change to the total value of investors’ holdings. They are simply are broken down into more individual units.

The 5-1 stock split according to analysts is good news for the retail investors that would love to own a whole piece, but cannot afford let’s say $1600 per share. The idea is to reduce the share price 5x, which makes owning a piece 5 times cheaper than the current trading price.

Wedbush analyst Daniel Ives in his note to clients after Tesla announced a 5-for-1 stock split, expected to be effective on August 31, as the company follows the lead of Apple (AAPL), believes more tech giants such as Amazon will potentially head down this path over the coming months as the parabolic rally in tech and electric vehicle names over the past five months has put companies in a position of strength to make such moves.

Daniel Ives believes Tesla’s action, given its strong retail base and growing appetite among investors around the story and overall EV demand, is a smart strategic move at the right time.

Further, the analyst thinks that with demand for the Model 3 ramping stronger than expectations in China heading into August/September, the lockdown easing in the U.S./Europe, and some potentially “game-changing” battery developments on the horizon, Tesla’s stock likely has room to run further. He maintains a Neutral rating and a price target of $1,800 on the shares, with a $2,500 bull case target. reports The fly

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