The price of Tesla’s shares hit $420 on Wednesday afternoon, sparking reactions from social media users and Tesla’s CEO, Elon Musk.

“As foretold in the prophecy,” Musk commented in a post on X, including a screenshot showing the stock price.

Although Tesla’s stock has reached this price before, this marks the first instance the share price has exceeded $420 since the stock split in August 2022.

In 2018, Musk hinted he was pondering taking Tesla private if the stock price hit $420, but the company remains publicly listed despite crossing this iconic price multiple times.

A jury determined Musk was not at fault for misleading investors regarding an earlier 2018 tweet referring to having “funding secured” to privatize the company.

This year, Tesla’s stock has surged 70% largely due to Musk being named the co-leader of the Department of Government Efficiency, referred to as D.O.G.E.

President-elect Donald Trump appointed Musk and entrepreneur Vivek Ramaswamy to head D.O.G.E. Trump stated that this department will provide external advice to the government, collaborating with the White House and the Office of Management and Budget to “drive substantial structural reform and implement an unprecedented entrepreneurial approach to government.”

Additionally, Tesla held its “We, Robot” event, where Musk introduced a self-driving taxi and demonstrated the company’s humanoid robot, Optimus.

What does Tesla’s stock split mean?

A stock split occurs when a company’s board opts to increase the number of shares available by issuing new shares to existing shareholders in a specific ratio, thereby lowering the existing share prices, as explained by the Financial Industry Regulatory Authority.

Tesla previously conducted stock splits on August 31, 2020, and again on August 25, 2022. While a stock split does not alter the overall market value of the company, it can make shares more appealing to a wider audience by reducing their price.

Short-term, a stock split can create excitement, which might cause share prices to rise temporarily, according to Forbes. Over the long term, it helps keep the company’s share price lower, benefiting the company as long as it continues delivering acceptable returns to shareholders.

‘Tesla stock is rising again!’

Musk isn’t the only one celebrating this achievement for Tesla, as X users also expressed their thoughts, many supporting the company as its stock price reaches new record heights.