Tesla Stock Price Rallies on Wedbush Upgrade
Source: iStock

Tesla Stock Price Rallies on Wedbush Upgrade

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Tesla is set for yet another great day today after analyst Dan Ives at Wedbush joined Morgan Stanley in raising his price target for the company. Ives raised his target from $1,800 per share to $1,900. The news comes after Tesla rose over 20 percent over the past three sessions, closing at a record $1,605 per share on Friday. But why is Tesla stock soaring, and is Tesla still a good buy at such a high price?

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What is Tesla stock price today?

As of the time of this article's writing, Tesla looks set to hit another record high today. During premarket trading, Tesla stock was up 1.83 percent at $1,671 per share. In recent weeks, the automobile, battery, and solar company has been setting record after record as its stock price surges amid the coronavirus pandemic.

Tesla Stock Price Rallies on Wedbush Upgrade
Source: iStock
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When is the Tesla stock split?

Last week, Tesla announced that it is set to split its stock on Aug. 31. The 5-for-1 split will see existing Tesla shareholders receiving four additional shares for every share they own in the company.

Wedbush on Tesla

Wedbush Securities, a leading investment firm, still seems to believe that Tesla could be a good buy, even with stock prices reaching record highs. Analyst Dan Ives raised his price target for the company from $1,800 to $1,900 while maintaining his "neutral" rating, citing increasing demand from China as the reason behind the move.

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Tesla Stock Price Rallies on Wedbush Upgrade
Source: iStock

"To this point, robust Model 3 demand out of China remains a linchpin of success and appears to be on a run rate to hit 150k unit deliveries in the first year out of the gates for Giga 3 which is driving some strength for Tesla as well as Model Y deliveries starting to ramp as well," Ives told clients in a note. "Looking ahead, we believe Musk & Co. are slated to announce a number of new potential 'game-changing' battery developments at its highly anticipated Battery Day on Sept. 22."

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What is the Tesla 5-for-1 stock split?

As mentioned previously, Tesla's 5-1 stock split will see existing Tesla shareholders receiving four additional shares for every share they own in the company. For example, if you have one share in the company currently worth $1,600, you would have five shares after the stock split worth $320 each, for a $1,600 total.

While we don't know the exact reason Tesla has chosen to split its stock, it likely has to do with speculation that the company could soon join the S&P 500 stock index. A lower price point would make the stock more attractive to individual investors by ensuring that they get more shares for their money.

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