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At the end of August 2020, Tesla split its stock price five for one, bringing its previously sky-high share price of $2,230 down to a
At the end of August 2020, Tesla split its stock price five for one, bringing its previously sky-high share price of $2,230 down to a more accessible $446 on Aug. 31. Following the split, the share prices eroded to $400.51 at the close of trading on November 2, 2020; this price represented a rather astronomic price-earnings ratio of 770.21 (based on an EPS of $0.52 for the previous 12 months). Would you predict that Tesla's stock price at the start of 2025 would be above or below $400 per share? Why?
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