Tesla, Inc. (TSLA) Stock Overview
Drivers of Historical Stock Performance
Good Financial Performances
Tesla reported consistently positive earnings in the quarters following mid-2020. A pattern of increasing revenue and widening net profit margins is a strong positive indicator for investors.
| Quarterly Financials (Mar 2025 Estimates) | ||
|---|---|---|
| Revenue | 1.93KCr | +9.23% Y/Y |
| Net income | 40.9Cr | +70.58% Y/Y |
| Diluted EPS | 0.12 | +70.73% Y/Y |
| Net profit margin | 2.12% | +67.53% Y/Y |
Delivery Milestones
Meeting and exceeding vehicle delivery targets has been a key factor in investor confidence. Notable examples include:
- Q3 2020: Approximately 139,300 vehicles delivered, a 44% rise from the same period in the previous year.
- Q2 2022: Approximately 254,700 vehicles delivered, a 26% increase year-over-year.
Expansion and Innovation
Constant news about product development and factory expansion fuels interest.
- Three new Gigafactories in Shanghai, Berlin, and Texas have significantly boosted production capacity.
- Previews of futuristic products like the Cybertruck and Semi keep the brand in the spotlight.
Market Factors and Investor Sentiment
- Hype and Mood: Social media, particularly announcements from Elon Musk, has historically amplified market interest and volatility.
- Market Trends: As a prominent growth stock, Tesla benefited from periods of low interest rates.
- ESG Investing: A growing trend in investing in companies focused on environmental, social, and governance (ESG) issues has also bolstered clean energy stocks like Tesla.
Also Read: How to Buy Tesla Stock in India – Step-by-Step Guide
Tesla Stock Highs Before Splits
This section captures the amazing peaks that Tesla shares hit immediately before their two significant stock splits. Understanding these pre-split highs—driven by delivery milestones, earnings beats, and market excitement—can help investors better comprehend Tesla's value dynamics and investor psychology.
Tesla Stock Split Summary
| Split Date | Ratio | Pre-Split High (Close) | Post-Split Open | Notes |
|---|---|---|---|---|
| Aug 31, 2020 | 5-for-1 | $498.32 | $99.66 | Made shares more accessible to retail buyers |
| Aug 25, 2022 | 3-for-1 | $891.29 | $297.10 | Continued focus on affordability |
Detailed Look at Pre-Split Highs
2020 (5-for-1 Split)
- Pre-Split Peak Close: $498.32 on August 28, 2020.
- Intraday Touch: Approximately $504 on August 27, 2020.
- Context: The rally was fueled by strong Q2 2020 results (90,650 vehicle deliveries, $104M in earnings), anticipation of inclusion in the S&P 500, and optimism from the Gigafactory Shanghai ramp-up.
2022 (3-for-1 Split)
- Pre-Split High Peak Close: $891.29 around July 24, 2022.
- Reference All-Time High: The pre-split adjusted high was $1,229.91 on November 4, 2021.
- Context: This period was supported by strong Q2 2022 deliveries (254,695 cars), Gigafactory expansions in Texas, and the Cybertruck presentation, though macro pressure on growth stocks created volatility.
Also Read: Tesla PE Ratio Explained: Is It Overvalued or Genius?
Adjusted Stock Prices Post-Split
How It's Calculated
All historical, pre-split prices are divided by the split ratio to maintain consistency.
- 2020 Split: $498.32 ÷ 5 = $99.66
- 2022 Split: $891.29 ÷ 3 = $297.10
Why It Is Important
- Ensures historical charts accurately show percentage gains.
- Allows for fair comparisons of performance across split events.
- Clarifies that only the per-share price changes, not the overall market capitalization.
Frequently Asked Questions (FAQs)
At its peak, how high was Tesla's stock?
Before its first split, Tesla's stock reached an intraday high of $2,021.99 on August 20, 2020. The all-time high, adjusted for all splits, was achieved in November 2021.
How many times has the Tesla stock been split?
Tesla has split its stock twice:
- A 5-for-1 split in August 2020.
- A 3-for-1 split in August 2022.
Is it possible that Tesla's stock will go higher than it is now?
Expert opinions are divided. Many analysts believe in Tesla's long-term growth prospects due to its lead in the EV market and diversification into energy and AI. However, others caution that the current price is elevated and faces risks from competition and economic shifts.
What happened after the previous stock splits?
The outcomes differed based on broader market conditions:
- 2020 Split: The stock rallied significantly, gaining approximately 81% in the weeks surrounding the split, fueled by strong market optimism.
- 2022 Split: The stock saw a modest lift but then declined in the following months, largely influenced by macroeconomic headwinds like rising interest rates.