Is it really just tesla's possible split that is moving price up that much ? It will be more affordable to buy for some people , but how much would that effect the price? I never understood rapid price movement before splits. I am not complaining , I have some tesla, but It seems like that price movement is unjustifiable and might be coming back down after that news is digested. Musk does this all the time,, He will take bitcoins, stock goes up He will not take bitcoins anymore , stock goes down He says he wants to focus on robots , stocks crashes. 1 month later he wants to focus on increasing production , stock goes up etc.
Because Musk is watched by everyone for anything he says or does. Musk owns 17%, institutionals own 37.6% so the remaining 49.4% is retail and they react to anything Elon, the good, the bad and the ugly. I don't think it's any different with other companies with notoriety, it's just that Musk keeps Tesla in the news to make up for a lack of marketing budget. As for the split, it's the same. All companies see a surge upon announcing a split even if it doesn't affect anything other than psychology. With the ability to buy fractional shares it shouldn't matter at all anymore, yet... The big question is, will Tsla match Google and Amazon to a 20 to 1 split? At 60 a share there will be a new batch of millionaires and multimillionaire.
It doesn't take that much to move price. You can have a market cap of billions and if volume is anemic, it can move wildly. In the case of TSLA, volume has been declining, so what does that mean? It means that all it takes is some hedge fundie (a la Jim Cramer, look up his market manipulation video on YouTube) to move the stock. I suspect you'll find the exact same situation in many of the big moving stocks. So if this is the case, this is (IN MY VERY UNINFORMED OPINION) market manipulation and not real buying. AAPL: AMZN:
I wonder how long can tesla keep rising like that before a huge pull back . I might just buy puts and sell my tesla shares, really don't what to do with this stock. I should have sold it when it hit $1250, I was too greedy , thought it was gonna hit 1500
Maybe you should read up on the company and go from there. No one is indifferent to Tesla and you will get emotional responses from every which way.
technically a split should not change anything. However the argument is that smaller investors can now buy the stock - which makes little sense to me because many of those investors can buy fractional shares.
The stock should rise with a split. More people can buy in 100 share lots. They can then trade an option (1 option) on the stock in whichever way they choose. They would be covered in case of large movements...Basic option trade.
It's a simple concept... If the shares of the company become more accessible to people via a lower share price, more people will buy it, and so they want to get in on it before the stock actually splits, to capture the upside from the new people buying it after the split. You are in old-school algo and quant-land here. Same thing happened to Alphabet.