Tesla to Increase Shares and Reduce Prices
Tesla, a prominent player in the tech and automotive industries, revealed plans on Tuesday for a five-for-one stock split for all current shares, scheduled for August 31. With this move, each Tesla share will be divided into five shares with lower individual values. Before the split, one share of Tesla priced at about $1,500, would be valued at around $300 post-split. Shareholders will maintain ownership of the divided shares, ensuring that the overall value remains unchanged. Following the announcement, Tesla’s stock surged by 6% at the close of Tuesday’s trading session.
According to Tesla representatives, the objective of the split is to enhance accessibility to stock ownership for both employees and investors.
Despite the challenges posed by the ongoing pandemic, Tesla’s stock has shown resilience, climbing over 200% to $1,374 since the commencement of 2020. Tesla currently holds a significant position among the top companies in the western stock market, surpassing industry stalwarts like Disney and Coca-Cola.
In a parallel development, Apple, another key player in the tech industry, declared its own four-for-one stock split last week, also set to take effect on August 31. Apple shares were valued at approximately $450 per share on Wednesday. Following the split, each share will be worth around $100.
These split announcements by Tesla and Apple demonstrate that, amidst the challenges presented by the pandemic, the tech sector continues to thrive and excel. Both companies are likely targeting new investors with reduced share prices resulting from the splits, which could potentially drive their values even higher.
