What Tesla Investors Should Know Ahead Of Stock Split

TSLA) shares are up 66% since the company announced a five-for-one stock split back on Aug. 11. The split will take effect on Aug. 31, 2020.

A large part of the decision is likely due to Tesla’s 966% gain in the past year. At a share price of $2,280, shares of the EV maker have likely become prohibitively expensive for some retail investors. By splitting its shares five ways, Tesla will bring its share price back down to around $456.

In addition to ensuring access to all investors, a stock split is typically also an indication that management doesn’t see the current market value as overinflated, another bullish sign.

Tesla investors who owned the stock as of the record date of Aug. 21, 2020, will receive split shares in their trading accounts following the aftermarket close on Aug. 28.

market studies have shown stocks that have split typically outperform the market following the split. Tesla investors are hoping their split will be no exception.” data-reactid=”29″>Benzinga’s Take: For all of the reasons mentioned above, multiple market studies have shown stocks that have split typically outperform the market following the split. Tesla investors are hoping their split will be no exception.

Unusual Tesla Option Trades Pushing Stock Higher And Higher” data-reactid=”31″>Unusual Tesla Option Trades Pushing Stock Higher And Higher

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