Nuked Tesla has announced a new five-way stock split to take effect on August 28th. It will make the company’s shares cheaper for buyers.
The electric car maker’s stock closed on Tuesday at $ 1,374.39 a share. It’s close to its July all-time high and at a total market valuation of more than $ 256 billion.
Starting August 31st, Tesla says it will begin trading on a split-adjusted basis. Starting August 31, Tesla said it will start trading on the split-adjusted basis.
Stock splits are typically neutral events for investors – you used to own one share and now you own five, but the value remains the same. For Tesla, it helps defend against claims its stock price is inflated by reducing the total cost of one share by 80 percent.
Some reasons include not being able to move fractional shares between brokerages as easily as full ones. But in some cases, it’s good for appearances to have a lower-priced, more accessible stock.
