TESLA (NASDAQ: TSLA) shares pre-market up 7% after the carmaker announced Tuesday the five-for-one stock split. The split set to go into effect on August 31. Each stockholder of record on Aug. 21 will receive a dividend of four additional shares of common stock for each one they own. Starting August 31st, Tesla says it will begin trading on a split-adjusted basis. Recently, Apple’s stock price has soared by 14% because of the iPhone producer disclosed a four-for-one divide lower than fourteen days previous.
“The Board of Directors has approved and declared a five-for-one split of Tesla’s common stock in the form of a stock dividend to make stock ownership more accessible to employees and investors,” Tesla said in a statement.
As we know the stock splits are typically done when the price of a stock gets so high that it intimidates small shareholders. The shares of TESLA surged more than 200% in this year and as per Tuesday closing the shares are valued at $1,374. After the stock split, the price would be around US$275 but the market capitalisation will not be affected. So, this will be more helpful for any normal investor wanting to own at least one Tesla stock. “make stock ownership more accessible to employees and investors” the company said.