5 Things You Should Know About the Tesla Stock Split

TIM THOMAS TIM THOMAS Learn more

On August 4, Tesla (NASDAQ: TSLA) declared that its shareholders had approved a 3-1 stock split for its shares.

[{"selector":"#anim-100a3a1b-34f7-4d95-b7b8-c573ee7ad3df","keyframes":{"opacity":[0,1]},"delay":400,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f0468b4b-23a0-46d6-9fea-df695d63fdf1","keyframes":{"transform":["translate3d(0px, 233.73888%, 0)","translate3d(0px, 0px, 0)"]},"delay":400,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Learn more

While the news of the Tesla stock split has been anticipated by shareholders, the shares fell 2.6% lower during the first trading session after the announcement.

[{"selector":"#anim-77c763f0-ca66-4282-8875-d84f2399b966","keyframes":{"opacity":[0,1]},"delay":400,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1f82a90a-f832-44c9-95ab-f29a874094f4","keyframes":{"transform":["translate3d(0px, 181.79175%, 0)","translate3d(0px, 0px, 0)"]},"delay":400,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Learn more

Shareholders generally support the concept of stock splits; It’s nice to have at least the impression of getting something for nothing.

[{"selector":"#anim-656b10fe-c614-49c0-a0d6-4ccda13837f6","keyframes":{"opacity":[0,1]},"delay":400,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a9c9186b-a08d-4779-aae9-bf2c3d21dbd1","keyframes":{"transform":["translate3d(0px, 210.50133%, 0)","translate3d(0px, 0px, 0)"]},"delay":400,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Learn more

A stock split, however, does not always imply that investors would receive better value for their money. Tesla’s shareholders approved the revised stock split during the annual shareholder meeting in Austin, Texas.

[{"selector":"#anim-6ac6b43c-ec3b-4577-960d-50fb9c16e778","keyframes":{"opacity":[0,1]},"delay":400,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-532fc579-c8af-435e-8690-e07c614b7df9","keyframes":{"transform":["translate3d(0px, 145.43408%, 0)","translate3d(0px, 0px, 0)"]},"delay":400,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Learn more

Five Things to Know about Tesla Stock Split

1. Tesla’s Stock Split Will Make it More Affordable

For most individual investors, Tesla has long carried a heavy price tag, with its stock price approaching $1,000 per share.

[{"selector":"#anim-88bb26f9-8115-4168-8d6c-38bf572f56d5","keyframes":{"opacity":[0,1]},"delay":400,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-4ca15693-7130-4c94-a984-f8e5e954b4db","keyframes":{"transform":["translate3d(0px, 211.60651%, 0)","translate3d(0px, 0px, 0)"]},"delay":400,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Learn more

The 3-1 stock split will change all that and spur more retail investment in the company.

[{"selector":"#anim-1406ec8d-0cab-4bde-806e-702a6fb61b6a","keyframes":{"opacity":[0,1]},"delay":400,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-91a4a55b-a3ae-417f-a52d-89af3b21d82d","keyframes":{"transform":["translate3d(0px, 321.36753%, 0)","translate3d(0px, 0px, 0)"]},"delay":400,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Learn more

2. Why is Tesla Stock Splitting?

According to several experts, the Tesla split will increase the stock’s availability for regular investors.

[{"selector":"#anim-48f6e0e2-d188-411c-9ac1-a70f89f75090","keyframes":{"opacity":[0,1]},"delay":400,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-71c900d9-73d8-418f-8da7-6af985b0ebfb","keyframes":{"transform":["translate3d(0px, 249.02462%, 0)","translate3d(0px, 0px, 0)"]},"delay":400,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Learn more

Its provision on performing loans was higher by $244 million driven by the reduced uncertainty in the market.

[{"selector":"#anim-b80436ed-c8f0-4379-a6a5-6df252507c8d","keyframes":{"opacity":[0,1]},"delay":400,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-98b3034c-7d5c-4245-8a1a-1548aafdcfd6","keyframes":{"transform":["translate3d(0px, 244.44444%, 0)","translate3d(0px, 0px, 0)"]},"delay":400,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Learn more

Swipe up now to read the full post!

[{"selector":"#anim-ba9f8ca0-a618-4154-a403-8d14a0ec2240","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-61311b64-07fb-4cdf-b51e-1793eab5d0f9","keyframes":{"transform":["translate3d(259.40593%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0de13c46-490f-4949-b04b-02d05c4a5dc5","keyframes":{"opacity":[0,1]},"delay":300,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-166cd90b-7d13-45bd-9e91-b4aba380e4f2","keyframes":{"transform":["translate3d(42.07921%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8bdf38c6-9cfc-4e92-99ab-768f83502407","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-10d27733-17d6-439b-90b0-d9c663b43d9b","keyframes":{"transform":["translate3d(151.50000%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8c7e3c71-eac9-4e43-9529-7ee3653fafcc","keyframes":{"opacity":[0,1]},"delay":600,"duration":1600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a465d536-c99c-4e65-9451-253e503437e8","keyframes":{"opacity":[0,1]},"delay":500,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1c5e087a-e0c2-48e2-951b-37fff7af6c31","keyframes":{"transform":["translate3d(-44.55445%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":500,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-645c8b74-8876-4504-9479-9e8db373085e","keyframes":{"opacity":[0,1]},"delay":300,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-dc8476cc-a94c-414d-9e35-3b4d24664fd0","keyframes":{"transform":["translate3d(-260.89109%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-770a774e-2cbd-4bff-b28d-4bf41a08bba0","keyframes":{"opacity":[0,1]},"delay":400,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-15e05293-0d3b-4273-bfdb-b1cb992f4454","keyframes":{"transform":["translate3d(-154.5%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":400,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a97af70f-adc5-4f68-b263-93382a25f225","keyframes":{"opacity":[0,1]},"delay":600,"duration":1600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Warning Signs a Big Housing Market Crash is Just Around the Corner Big Trends to Expect in the US Housing Market