Hey everyone me kevin here so by now you may have heard that tesla has announced a three for one stock split. This is substantially less than the 20 for one stock split that was rumored because of jp morgan release letters that indicated that oh yeah tesla's definitely planning a 24-1 stock split anyway, this three for one stock split, which basically just means for every one share you have You end up getting a three doesn't change anything about the valuation of the company is expected to be voted on on august 4th now, post stock splits, it's very common for companies to outperform the s p 500, with a normal three-month period of the s p. 500. Moving about 2.1 post stock, splits companies tend to move about 7.8 percent after six months 4.4 on the s: p, 500, 13.9 on a stock split stock and after 12 months 9.1 on the s p, 500 versus 24 uh, i'm sorry, 25.4 on the stock split stock.

So oftentimes, the stock splits can affect the performance of a stock, because maybe the stock looks cheaper or it's easier to buy with fractional shares, even though it does little to the fundamentals. Speaking of fundamentals, though, even though tesla has canceled recruiting events in shanghai, we've got sales r d and supply chain departments seeing cuts their june 9th event got cancelled in shanghai. Barclays is raising their price target on tesla by 14, suggesting that q2 production is likely to come in at about 256 000. elon musk is trying to push for 300 000 deliveries, but if we only hit 256, that would represent the largest decline in tesla's history, and This is partially due to a slower ramp at new factories, shanghai's lockdown that took longer to get back up and running from quality and supply chain issues with no second shift at berlin and texas struggling to get that 4680 integrated battery pack out.

They have, however, increased their price target by 14 percent to a wild 385 dollars, which is about half of what the stock is trading for now. Ubs, on the other hand, raised their price target as well, setting a massive order back large log and a substantial margin. Momentum, they're still expecting 50 growth for the year they're taking more of a year, look rather than a quarter to quarter look with an eleven hundred dollar price target. They also expect that tesla's, vertical integration and semiconductor software and battery will result in superior growth and profitability.

Of course, batteries are the biggest bottleneck for the ev industry and they believe that, because tesla has their own battery construction and factories and manufacturing, they believe that tesla is uniquely advantaged or uniquely positioned to drive higher margins with their own batteries and actually deliver. In fact, ubs is so bullish in their bull case scenario, they think tesla can have margins uh, that's operating or, i should not say operating gross margins. That's vehicle minus cost of goods sold that could rise from 30, where they sit now without tax credits. All the way up to 34.7 quite bullish.

What side are you on the bullish side or the bearish side? Let me know what you think about tesla's evaluation. What's going on with tesla in the comments down below personally can't help but be bullish and see this recession that we're going through whether it's an actual recession, an earnings, recession, bankruptcies, you name it as a bullish opportunity to increase my quantity of shares owned thanks for Watching we'll see the next one.