Analyst Note
| Seth Goldstein, CFA |On June 10, Tesla filed its notice of the 2022 annual meeting of shareholders, which will be held Aug. 4. One of the proposals was a 3-for-1 stock split, which would occur through a stock dividend. We think the proposal is likely to go through, as Tesla's board has previously approved a stock split with the goal to reduce the price of a single share. While a stock split does not change our enterprise valuation for Tesla, it would currently change our fair value estimate from $750 per share to $250 due solely to the new share count. While we think the split will likely be approved, we will wait until after the meeting in early August to update our fair value estimate. As such, our current $750 per share fair value estimate is unchanged. Our narrow moat rating is also unchanged.