Tesla will conduct its first ever stock split

Tesla's board of directors approved a five-for-one share split. This will make one of the fastest growing stocks on the market more accessible to retail investors: on the news of the split, Tesla quotes jumped 7% after the close of trading.

“Each registered shareholder will receive a dividend of four additional shares of common stock per share on August 21 of this year, which will be distributed after the close of trading on August 28,” Tesla said. Already on August 31, trading will begin, taking into account the split.

• Since the beginning of 2020, Tesla shares have risen in price by almost 300%. The company surpassed Toyota in capitalization and became the most valuable auto company in the world almost exactly on the tenth anniversary of its listing. Over the past year, Tesla's capitalization has grown fivefold, to $205 billion.
• So far, Tesla's stock is worth $1,500, which already makes it hard to reach for small investors. A split share would thus be worth about $300.
• In July, Apple announced a four-for-one stock split. The shares will be distributed among shareholders on August 24, and trading will begin with a split adjustment on August 31. This means that for every share of Apple that the investor owns, he will receive an additional three.