Last week, Tesla shareholders voted in favor of splitting the stock on a three-for-one basis. The old trick
to increase the stock’s appeal is secondary to Elon Musk’s announcements at the Cyber Roundup in
Texas.
During the shareholder meeting, Tesla said its self-driving FSD Beta program would achieve over 100
million miles. Musk believes that Tesla will have a widespread deployment of FDS beta in North America.
The company plans to increase its Gigafactories locations. It will build at least one this year. In total, it
could end up with between 10 to 12 Gigafactories.
Musk promised to re-reveal the Cybertruck’s specification and pricing. The pricing will change from 2019
due to inflation. The company enjoys strong pricing power for its other models. It raised prices on
various models to pass inflationary costs to customers.
Production Growth
Tesla’s 12 gigafactory goal implies a production capacity of 1.5 million to 2 million units each. At that
rate, no other manufacturer will match Tesla’s output. Ford (F) and General Motors (GM) are spending
billions to enter the electric vehicle market. Tesla’s strong moat in the sector would justify the stock
rebounding back to the $1,100 level again. The stock’s 52-week high is $1243.49.
