Yesterday, electric car maker Tesla announced that it is offering a five-for-one stock split. This means that every one share a stockholder has will become five shares with the value adjusted. Telsa’s stock price spiked 6 percent after the announcement. The spilt will go into effect after the market closes on August 31. It does not fundamentally change the stock but does allow many smaller investors to afford shares. At the time of writing, the price of one share was $1,478.39 but the spilt will bring that price down by a factor of five. Shares of Telsa have more than tripled already this year with the stock up 228.54 percent year-to-date. The stock also jumped after great second quarter earnings. Their most recent figures qualified them to join the S&P 500.
Monday, June 14, 2021