TESLA (TSLA) 2-for-1 Stock Split Due On 24 August
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Summary:
- A three-for-one stock split has been announced by Tesla.
- Teslas stock price will begin trading at a third of its current value.
TESLA’s stock split
A three-for-one stock split has been announced by Tesla, giving investors something to look forward to this coming week. A "dividend" of two additional shares will be given to Tesla stockholders as of the conclusion of trading on August 24. The Tesla shares will begin trading the following day at the new price, which is a third of its previous value.
According to one study, stocks that announce splits often outperform the market over the following 12 months by 16 percentage points. Tesla's shares, which were recently $860, will now cost closer to $285, a significant difference for regular investors. For Tesla, small investors are important. Noninstitutional investors own about 46% of the shares that are available for trade. 15% would be a comparable figure for, let's say, Alphabet.
Additionally, stock splits can indicate management's confidence in the future. A firm never splits a stock that it anticipates losing value. Shares of Tesla increased by an astounding 81% between the announcement and the share trading on a new split-adjusted basis the previous time its stock was split—five for one back in August 2020. That repeating is difficult to imagine. First off, the news of this split has been well publicized for several months, and the shares have increased by approximately 25% in the past month and by 40% since their May 52-week low.
TSLA Price Chart
Sources: finance.yahoo.com, barrons.com
