Is Tesla Stock a Buy NOW! 5 to 1 Split Review! (TSLA)

Tesla has announced a 5 for 1 stock split after market close today – sending its stock (TSLA) jumping as much as 8% in after hours trading.

In short, it means that each Tesla shareholder will see their number of shares held increase by a factor of 5, but the value of the share will be adjusted accordingly.

This aims to reduce the price per share and as Tesla put it: “make stock ownership more accessible to employees and investors.”

The stock split will happen on Friday August 28th and the stock will resume trading the following Monday.

After the announcement, Tesla’s stock price (TSLA) jumped by as much as 8% before settling down up 6% at ~$1,450.

If Tesla’ stock price was to remain the same until the end of the month, it will be trading at around $290 per share after the stock split.

My Thoughts
This is a bit of an over reaction in the stock aftermarket.

It’s not usual. Apple recently announced a split and it saw a bump from it, but much less than 6%.

For most shareholders, it really doesn’t change anything – like at all.



Comments

Popular posts from this blog

How to Start Investing in Stocks?

Top Oil Stocks to Buy 2020

Why The Stock Market is Going to Fall?