Technology
Tesla splits stock to make it more attractive to investors
You can forget about Tesla stock price being over $1,000 — at least for a while.
On Tuesday, the company announced its first ever stock split. The split will be performed in a five-for-one fashion, meaning one stock will be split into five.
In a stock split, there are no material changes to the company’s overall market cap. In practice, those who own Tesla stock on Aug. 21 will receive four additional Tesla shares per share after trading closes on Aug. 28, 2020. Then, the price of the stock will be adjusted to 20 percent of the original price.
Stock splits are typically done when the price of a stock gets so high that it intimidates small shareholders. Right now, Tesla shares are valued at $1,374 a piece, which may sound like a lot for someone wanting to own at least one Tesla share. Divide that by five, and you get a far more manageable $274.80 price (so you’ll be paying a fifth of the price but it’ll be worth just 20 percent of a current Tesla share).
Tesla says it has decided on the split to “make stock ownership more accessible to employees and investors.”
Ideally, this should put some buying pressure on Tesla stock as smaller investors flock to buy, but, as always, nothing is guaranteed.
Tesla’s move follows Apple’s recent four-to-one stock split announcement, the fifth split in the company’s history.
-
Business6 days ago
Langdock raises $3M with General Catalyst to help businesses avoid vendor lock-in with LLMs
-
Entertainment6 days ago
What Robert Durst did: Everything to know ahead of ‘The Jinx: Part 2’
-
Entertainment6 days ago
This nova is on the verge of exploding. You could see it any day now.
-
Business5 days ago
India’s election overshadowed by the rise of online misinformation
-
Business5 days ago
This camera trades pictures for AI poetry
-
Business6 days ago
CesiumAstro claims former exec spilled trade secrets to upstart competitor AnySignal
-
Business4 days ago
TikTok Shop expands its secondhand luxury fashion offering to the UK
-
Business7 days ago
Internet users are getting younger; now the UK is weighing up if AI can help protect them