The value of the day on Wall Street Tesla: towards a new “split”, investors rejoice – 03/28/2022 at 17:04

(AOF) – Tesla climbs 6.28% to $1,074.11 a share in the New York market, claiming the top spot in the S&P 500, as the electric vehicle manufacturer seeks to complete a new split (“split”) of its title. In a regulatory document, the firm of Elon Musk said that it wishes to increase the number of shares in circulation, which should allow a reduction in their nominal value via the distribution of a dividend in the form of shares.

The proposal must be validated by the shareholders at the annual general meeting. More details should be communicated when the date and place of the general meeting are revealed.

Tesla had already carried out such an operation in the summer of 2020 in order to make its action more accessible to employees and small investors. The title, which then evolved to nearly 1,500 dollars, had seen its nominal value divided by 5.

Tesla isn’t the only Wall Street star to split its stock price in recent years. This was also the case for Alphabet, Amazon and even Apple, whose capitalizations had reached stratospheric levels.

This “split” prospect allows investors not to take offense at information reported by Reuters, according to which Tesla has decided to suspend production at its Shanghai factory for 4 days due to containment measures taken by the Chinese authorities.


Automotive – Manufacturers: A recovering sector

The French car market has not yet recovered from the Covid. Only 141,041 passenger vehicle registrations were recorded in May, according to the Committee of French Automobile Manufacturers (CCFA). This is 27.3% below the May 2019 level.

Born in January from the merger between PSA and Fiat Chrysler, Stellantis became the leading car manufacturer in Europe in the first quarter, thus overtaking the Volkswagen group (Volkswagen, Audi, Seat, Skoda, Porsche, Lamborghini, etc.).

A long-awaited recovery

Over the first five months of the year, cumulative registrations amounted to 723,258 for passenger cars, i.e. 22.7% less than their 2019 level, before the health crisis.

Stellantis marketed around 44,000 new vehicles in May 2021, i.e. nearly 40% less compared to May 2019. The group suffered from a lack of components, which penalizes all manufacturers in the world. Stellantis was thus unable to produce 190,000 vehicles in the first quarter and in mid-March the Volkswagen group estimated that 100,000 vehicles could not be produced.

At 36,000 units, Renault group sales in May 2021 fell 27.8% from their pre-pandemic level.

Electric cars continue to develop in France and maintain their market share at 8% in May, with 11,562 registrations.

A sector penalized by the shortage of semiconductors

This shortage is mainly linked to the consequences of the Covid-19 pandemic. The German semiconductor manufacturer Infineon estimates that around 2.5 million cars will not be able to be produced in the first half of 2021 worldwide. It predicts that the imbalance between supply and demand will persist and could last until 2022.

However, automotive manufacturers are not affected in the same way by this shortage of electronic components. Those who have developed close relationships with their suppliers are less affected. This is the case with Toyota. On the other hand Ford announced that its production would be reduced by 50% in the second quarter and by 1.1 million vehicles over the whole of the year.

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