Tesla Investors Clear 3-for-1 Stock Split as Shares Rebound

(Bloomberg) — Tesla Inc. shareholders approved a three-for-one stock split on Thursday as the electric-vehicle maker seeks to attract an even larger number of retail investors amid a furious rally since late May.

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The split will bring Tesla’s shares down to the $300 range, but the Austin, Texas based-company did not immediately specify as of when it will take effect. Tesla had first announced its plan on March 28 via a tweet.

The four-month lag between announcement and vote is proving to be beneficial: A rally in growth stocks has brought the Nasdaq 100 Index up nearly 20% from a June low, with Tesla outperforming both the tech-heavy index and the broad S&P 500 Index with a gain of nearly 50% from a late-May low.

Tesla rose 0.3% in postmarket trading to $928.55 as of 6:34 p.m. in New York. The stock has been on an upswing over the past month, rising 37% since the end of June as of Thursday’s close.

“Tesla’s stock split timing looks impeccable,” Roth Capital Partners analyst Craig Irwin said, noting the shareholder vote is coming at a time when the “market seems to be heading in the right direction.”

Tesla’s recent rebound — it posted a 32% gain in July for its best month since October — comes on the back of resilient second-quarter results and a bit of a lift from the climate change bill from the Biden Administration, which aims to boost the use of clean energy through a series of tax incentives.

Most of the risks that weighed on the company earlier this year still linger, with supply-chain disruptions far from sorted, tensions between the US and China rising, and Elon Musk involved in a potentially lengthy and costly legal dispute with Twitter Inc. Moreover, recent high profile stock splits have failed to give a meaningful boost to other giants including Alphabet Inc. and Amazon.com this year.

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Read more: Alphabet Stock Split Lands With a Thud in Worry-Filled Market

For Tesla, this will be the second share-split in less than two years. The company had a five-for-one stock split in 2020, prompting a 60% surge in…

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