Tesla's stock price soared before Tesla shareholders voted on the stock 1 split 3 plan on Thursday.
On Monday, US stock ended three consecutive positives, but Tesla closed higher. The stock has risen for four consecutive days to a new high in the past three months, approaching a 50% rebound from a May low and a 32% increase in July, which is the best month since October 2021.
Tesla's last split dates back to 2020. At that time, Tesla's share price was about $1,300 per share, but the 1-split 5 stock split announcement pushed its share price to an all-time high of $2,000 per share, and soared 60% from the date of the announcement to the execution date.
The company announced plans to re-split the stock in March 2022. Last month, Tesla revealed that if shareholders are approved, it will adopt a plan of 1 demolition and 3 demolition. The vote will be held at Tesla's annual shareholders' meeting on Thursday, August 4.
stock split caused shorts to cover positions and caused short squeeze.
In 2020, Tesla stocks were shorted by at that time, and up to 7% of the outstanding stocks were shorted.
Now, Tesla stock is still the most shorted stock in the world . Although only 2.9% of stocks are shorted, about half of the previous stock split, as good news hits, the shorts are still hit critically and some people begin to retreat.
On Friday night, Tesla CEO Musk couldn't help but feel excited about the stock price rising, and tweeted to mock short sellers, saying that " heat wave is sweeping Shortville (short valley) " , implying that the surge in Tesla's stock price caused heavy losses to the short sellers.
In addition to stock splits, analysts said that short sellers may also need to worry about Tesla's announcement of some big news at the conference . After all, the shareholders' meeting held on Thursday was renamed "Cyber Roundup", which may help the stock price maintain its current momentum.
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