March 28, 2024

Tesla will split shares

Tesla will split shares

The company announced a 5: 1 share split scheduled for 28 August.

Eachthe Tesla shareholder will receive four additional shares that, when added to their existing share, will equal the pre-split share price. The price of all five shares will be equal to the closing price on 28 August.

The split itself (increasing the number of shares in circulation due tosplitting their initial number) will not change Tesla's market capitalization, but mayattract smaller investors who previously could not afford to purchase expensive company securities. 

The stock split now "is a smart strategic move at the right time," said Wedbush analyst Dan Ives, as Tesla shares have more than tripled this year.

Crushing at the end of August may servethe latest boost to Tesla's already high share price. The stock is up about 283% year to date, with investor interest growing on earnings performance, potential inclusion in the S&P 500 Index and strong auto deliveries amid the coronavirus pandemic. Tesla's current market capitalization makes it one of the most valuable automakers in the world, despite the fact that it produces far fewer vehicles than established brands such as VW or Toyota.

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