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Tesla Stock Price Rallies Above $2000 Mark Ahead of the 5-1 Split

Simon Mugo trader
Updated 22 Mar 2021

OPEN DEMO TRADING ACCOUNT YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY

Shares of Tesla Inc. (NASDAQ: TSLA) today surged 4.1% higher to trade at $2082.6 extending recent gains above the crucial $2,000 milestone hit yesterday.

The current rally is fueled by the 5-1 stock split announced by the EV manufacturer last week in order to make the stock affordable to everyday investors, which has seen investors pile into the stock.

Tesla has been a tear this year and is up 378.53% so far translating into an annualised 595.53% and is showing no signs of stopping.

The stock remains controversial to date with Tesla detractors opining that the company struggles to generate a consistent profit unlike other major automakers such as Toyota, Ford, Daimler AG, and Volkswagen among others.

Regardless, Tesla bulls single out its market leader position in the electric vehicle segment and its massive first-mover advantage as key reasons behind its pricey valuation.

As traders, we don’t get to choose a side since we profit from both bullish and bearish price moves, and we hold our positions for much shorter durations.

Tesla share price

Tradingview chart of Tesla share price 21082020

Tesla shares today surged 4.1% higher to a high of $2082.6 from yesterday’s closing price of $2,000.73.

Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading