Tesla stock price rallied sharply after the company announced five for one stock split in order to make stock ownership more accessible to investors and employees. The world’s largest electric vehicle company has also announced that each stockholder will receive a dividend of four additional shares for each held share.

Tesla’s stock price was under pressure over the last two weeks. The shares of electric vehicle company dropped from an all-time high of $1700 to around $1300. The latest stock split report has provided some support to its share price. The shares are currently trading around $1400.

TSLA Tesla, Inc. daily Stock Chart

Market analysts have mixed opinions over the Tesla stock price performance. Some are claiming that a 240% year to date stock price rally is unjustifiable.

For instance, Bernstein analyst Tony Sacconaghi dropped its ratings to Underperform from Market Perform as the analyst says that shares are overvalued at their current levels.

“Tesla’s current valuation is mind-boggling – its EV has now matched Toyota and Volkswagen combined and is up nearly 500% in less than a year – unprecedented for a large-cap stock outside of the tech bubble,” writes analyst Tony Sacconaghi.

Tony added that Tesla is among the biggest beneficiary of the user’s move towards electric vehicles. Despite that, its current valuation even under most bullish scenarios is unjustifiable.

On the other hand, the mega-bear Gordon Johnson also highlighted concerns over lofty valuation and massive share price gains. He says the valuation is detached from reality.

“Effectively their revenues, if you look at their total revenue, peaked in the fourth quarter of ‘18. If you look at their deliveries … (this) was not a record this quarter and we think the company is going to go back to hemorrhaging cash in Q3 and Q4.”

Meanwhile, Wedbush, Bank of America, and Credit Suisse are largely positive on the financial and stock price performance. Tesla shares rallied almost 500% in the last twelve months.