Tesla’s (NASDAQ:TSLA) winning streak has continued this week, with the electric vehicle (EV) leader boosted by multiple growth catalysts. For one, a sweeping climate bill including EV tax credits moved forward in the U.S. Senate yesterday. Following this, Kimbal Musk — the brother of Elon Musk and a Tesla director — also purchased 25,000 shares. His TSLA holdings now amount to more than 536,000 shares. Even with recent insider trading allegations, TSLA stock is rising on news on this large purchase.
There’s more adding to the momentum, too. Specifically, on Aug. 4, Tesla shareholders will vote on a proposed stock split. Given the overwhelming success of the first Tesla stock split, it will likely be approved. In particular, tech stock splits have been a huge theme of this summer. This potential TSLA split promises to be one the biggest of the season, however.
Let’s take a look at this week’s top Tesla stories that investors should be reading.
Top Headlines for TSLA Stock Investors
1. EV tax credits are back — and bigger — in new Senate climate bill
As mentioned, recent progress for a new bill in the Senate is great news for Tesla and other EV stocks. The bill doesn’t just mean continued tax credits for new EV buyers; it also means shoppers purchasing a used EV can get a tax credit. As The Verge reports, the bill “would also remove the current 200,000 vehicle cap before triggering a phase-out of the tax credit, a huge win for companies like Tesla,” Toyota (NYSE:TM) and General Motors (NYSE:GM). All three have “sold more than 200,000 EVs.”
2. Elon Musk sees inflation potentially trending down based on Tesla commodity prices
As Tesla CEO Elon Musk sees it, inflation may finally be subsiding. Recently, Musk tweeted that “more Tesla commodity prices are trending down than up,” hinting that this may be indicative of the economy at large. As Electrek observes, that tweet came “a day after Democrats in the Senate announced having reached a deal on the ‘Inflation Reduction Act of 2022.’” Lately, many experts have commented on surging inflation, but there haven’t been as many comments about the trend slowing.
3. Tesla Model Y shipments from Giga Texas are hitting their pace
It has been a difficult quarter for TSLA stock, but the company is still able to scale and grow. Although Tesla reported declines in both deliveries and overall growth in the second quarter, it does have good news to report. Specifically, Tesla’s Austin, Texas facility is “poised to hit the 1,000-vehicle-per-week mark” in the next few months or so. Gigafactory Texas appears to be shipping “larger numbers” of the popular Model Y. This is a promising development, especially since Musk recently referred to Tesla factories as “gigantic money furnaces.”
4. Tesla will spend more to increase production at two new factories.
Gigafactory Texas isn’t the only way Tesla is expanding. As The New York Times reports, the company is “increasing spending by about $1 billion to ramp up its factories, develop new batteries and finance other projects.” According to a securities filing, Tesla expects capital expenditures (capex) “to be $6 billion to $8 billion in 2022.” That’s up from a forecast in April of capex between $5 billion and $7 billion. This supports the bullish case that Tesla is focused on growth and taking the necessary steps to scale production after its turbulent quarter.
5. Amazon, Apple, Google and Tesla have all done it. Here’s why companies split their stock.
Last up on this list of news, the TSLA stock split is a must-watch event of the summer for both current and aspiring Tesla investors. As noted, Tesla’s 2020 stock split resulted in significant growth, sending shares rocketing. Now this summer, some of tech’s biggest names — including Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) — have opted to split their stocks, making shares more accessible to smaller investors. If approved, the TSLA stock split will likely provide a vital opportunity for new investors. Shareholders will vote on the TSLA stock split on Aug. 4.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.