Tesla Inc - Daily - The company has announced another stock split in the coming months sending shares higher.

Overview

Tesla Inc (NASDAQ: 'TSLA') is an electric car manufacturer and data company. Recently the company has laid down the foundations for another stock split towards its shareholders, just as a result of this Tesla shares moved over 10% higher which shows the company is in a very strong position. This stock split is also going to tie in with the opening of the German factory in Berlin and may help push the stock much higher. The split would pay existing shareholders dividends in the form of new shares, which they could then sell or hold. The number of shares to be awarded and the date of the split is still unknown.

Technicals

Looking at the chart, Tesla looks strong, but it does have 2 technical levels which will be tough to break. Firstly the purple downtrending resistance at $1,150 followed by the highs of $1,240. A break above here could see Tesla aim for $1,300 and then $1,500. RSI is currently overbought though and inflationary pressures still exist so this needs to be taken into consideration. To the downside support sits at $1,000 followed by $880.

Summary

Overall Tesla looks bullish and this because its high demanded stock and when it splits again, demand will stay high as it keeps the stock affordable for everyone. If Tesla hadn't done a split in the past, the current shares would be around $5,000 limiting investors. The stock will come under some pressure though as geopolitical issues and inflation are still about. Inflation will make Tesla less affordable to possible customers. And geopolitical issues are sending prices of metals sky rocketing as well as closing down markets, like Russia and Ukraine. I don't think investors will see the damage that the war or inflation is causing until Q3 earnings of 2022, Maybe some in Q2 this year.