TESLA stock split - an update

Tomorrow TESLA stock will be split in 5-for-1 move (you will get 5 shares for 1 share you hold).

Companies often do these splits to attract more investors in (greed?)

What does this mean for TESLA stock? This article speculates around the topic:

Stock splits come with some serious caveats. This is particularly true of excessive splits, such as Apple's 4-for-1 decision, or Tesla's pending 5-for-1 split. Tesla's split also takes effect on Monday.

Stock splits typically come in the 2-for-1 or 3-for-2 variety. William O'Neil, founder of Investor's Business Daily and author of "How to Make Money in Stocks," considers anything beyond those typical categories excessive. "Oversize splits create substantially larger supply," he explains in his bestseller. The result, he warns, "may put a company in the more lethargic, big-cap status sooner."

 In prior decades, Companies have often enacted multiple stock splits over a period of two to three years. This also amounts to excessive splitting. One of the most famous examples is Qualcomm (QCOM), which executed three stock splits from late 1998 to the end of 1999. During that period the stock ran up more than 2,500%.

The third stock split, a 4-for-1 division, took place in December, 1999. The following month, Qualcomm rolled over into a 20-month decline that would reduce the stock's value by 88%.

The example on Qualcomm the article talks about came at the end of the 2000s bubble. The 88% decline in Qualcomm is dues to the bubble popping rather than a stock split effect. Probably TESLA stock bubble will go the same path; I have no idea whether it is tomorrow or in 5 years. A 90% decline in TESLA stock (and maybe company bankrupcy) is guaranteed when the bubble pops. And it will!

In the meantime, the split itself will have no impact whatsover in the TESLA stock bubble.

BTW, Elon boy wealth tipped 100$ billions on Friday!