Tesla’s value on the stock market has been skyrocketing nonstop. We’ve seen incredible high’s throughout quarantine and most recently in these last few days the Tesla stock hasn’t stopped climbing.
In an attempt to make the stock more accessible, Tesla has decided to go forward with a stock split. What this means is that each person who owns one share of the company will be given an additional 4. Meaning that the value of 1 share will now be equivalent to 5 shares.
At the same time the value of the Tesla stock will be divided by the same ratio as the stock split. This means that if you owned one Tesla share at 100$ you will now own 5 Tesla shares at $20.
Companies often do this to make the stock more accessible to retail investors. The unpredictable growth of the Tesla stock over the last few months has made it inaccessible to a large portion of common investors.
Going through with a stock split will allow Tesla to continue growing, with a strong market value and more approachability for other investors looking to join in on the continued growth!
Do any of our readers own Tesla stock! Send us an email cause we’d love to hear your experience!