When Is Tesla’s Stock Split, and What Does it Mean for Investors?

Tesla Inc.

TSLA -2.28%

will split its stock this week, the latest megacap company to divide its highly priced shares this year in a bid to make them more accessible to investors.

Stock splits have declined in popularity over the years, but Amazon.com Inc. and Google parent

Alphabet Inc.

also split their stocks in 2022. Investors often interpret such plans as signals of confidence by management.

Shares of Tesla have climbed about 25% since the electric-vehicle company announced plans June 10 to split its stock. Shareholders cleared a path for the stock split at their Aug. 4 annual shareholders meeting, and the vehicle-maker unveiled the terms of the split Aug. 5.

Despite the rally, Tesla shares are down roughly 18% this year, struggling amid the broader market downturn as rising interest rates made investors take another look at richly valued growth companies.

Tesla closed at $869.74 a share Monday.

What does the Tesla 3-for-1 stock split mean for investors?

Tesla will split its stock Aug. 24. Shareholders as of Aug. 17 will receive what amounts to a dividend of two additional shares for each share they own. Trading will begin on a split-adjusted basis Aug. 25.

For example, an investor who owned 10 shares of Tesla before the split would own 30 shares after, with the share price divided by three.


How will Tesla’s stock split affect you? Join the conversation below.

Nowadays investors can also trade partial shares of pricey stocks. Clients of

Charles Schwab Corp.

, for instance, can buy a fraction of a share of S&P 500 companies for as…


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