Tesla: The value of the action soon divided by 3

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Investing.com – According to a Tesla (NASDAQ:) SEC filing made public yesterday, the Elon Musk-led electric car maker plans to split its stock at a 3-to-1 ratio.

This means that the number of Tesla shares will triple, and their unit value will be divided by three.

In the document, the company wrote of the stock split proposal: “Our success depends on our ability to attract and retain excellent talent”, and the “highly competitive compensation plans”, which offer every employee the opportunity to receive stock, helped Tesla achieve this.

“We believe the stock split would help reset the market price of our common stock so that our employees have more flexibility in managing their stock.”

Recall that the previous Tesla stock split took place in August 2020 at a ratio of 5 to 1.

Finally, note that in the same SEC filing, Tesla also disclosed that board member Larry Ellison, who currently owns 1.5% of Tesla stock, plans to step down as a board member. of administration of the company.

Citi is wary of Tesla stock

Also on Tesla, it’s also interesting to note that Citi analyst Itay Michaeli told analysts in a Friday note that Tesla (NASDAQ:) continues to dominate EV mindshare, but the trend is the decline.

In a note focusing on electric vehicles and ‘mindshare’, which is a tracking tool based on Citi’s latest analysis of internet traffic data for various EV brands/products through the end of May, Mr. Michaeli said traditional market share metrics currently don’t paint the full picture due to numerous constraints.

However, by analyzing internet traffic data, the company’s goal is to create a “mindshare” tracker as a potential indicator of future EV volume share.

“Recent website traffic data (measuring total number of visits) from several EV manufacturers and brands suggests a modest slowdown in overall traffic, with May down about 2% from peak levels,” writes Mr Michaeli. Although the decline is not severe and comes after very strong growth in recent years, the data suggests that macro/inflationary pressures may be weighing on consumer engagement somewhat. Looking at the May data for individual businesses (compared to September 21-February 22), we saw very mixed results across businesses.”

Citi’s mindshare tracker shows that Tesla continues to dominate mindshare, but low-cost mass market/luxury players (i.e. Hyundai (KS:), Kia, VW) and companies launching newer products are doing better than some of the premium players.

“Again, the data is mixed, but we generally view margins in the over $60,000 portion of the U.S. market as somewhat more vulnerable to macro pressures, given the amount of additional capacity being added in what is an estimated market size of only a few hundred thousand units, although gasoline prices may provide some compensation by accelerating the adoption of luxury EVs.”

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