Tesla Hopes New Investors Go For The Ride After Stock Split

Associated Press has an interesting coverage explaining what Tesla hopes to achieve with the stock split.

It says Tesla hopes new investors go for the ride after stock split.

Tesla is splitting its stock 3 for 1, so after the close of trading Wednesday, investors will receive two additional Tesla shares for every one they owned as of Aug. 17. In theory, that should drop Tesla’s share price by about two-thirds before trading starts on Thursday, explains the Associated Press.

Going further, the agency reports that Tesla shares traded for more than $1,000 when the company announced its intention to split the stock in March. "That’s a bit steep for most retail investors. Some brokerages let investors buy fractions of a share, but not all," reads the report.

Also, keep in mind, that stock splits don’t make a company more valuable or more profitable.

Disclaimer: I don't hold any stocks at all. This is not an advice to sell or buy a stock. This is pure Tesla news reporting.

This is Armen Hareyan from Torque News. Please follow us at https://twitter.com/torquenewsauto on Twitter and https://www.torquenews.com/ for daily automotive news.

Reference
Associated Press with Sun-Sentinel https://www.sun-sentinel.com/business/ct-biz-tesla-stock-split-ap-20220824-dwu4j53vqvhkblergpd4fcc4vm-story.html

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