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Tesla decided on a 5-1 stock split

Miguel A. Rodriguez
Miguel A. Rodriguez
14 September 2020
By the end of this month, Tesla will have a 5-1 stock split

The California-based electric carmaker, Tesla, never ceases to amaze the world. 

Yesterday, TSLA announced a five-for-one stock split, as it wants to make the stock accessible to its employees and retail investors. It marks the first stock split in the electric-car makers' history.

On August 28, after the closing bell, shareholders will receive four additional stocks. Starting August 31, the shares will be tradable on a split-adjusted basis.

According to experts, the stock split shouldn't impede Tesla's inclusion on USA500, as the index is based on companies' market cap. Given the hype that surrounds Tesla, analysts expect the market capitalization to grow even more. By the latest data from Refinitiv, Tesla stock is valued at 112 times expected earnings over the 12 months. 

For the market, this is the second most significant stock split in a little over a week. Apple announced a four-for-one stock split, the second one for the company. 

Following the announcement, the price of Tesla stocks went up 7%. Year-to-date, the stock price gained more than 220%.

See what Tesla did in Q2 here!


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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.