Tesla Shares Become More Accessible!

Tesla at a lower price starting August 31

Tesla's share price jumped by approximately 6% after yesterday's U.S. session closed, as the company announced a five-for-one stock split that will take effect on August 31. A split of the share price creates more shares of a company without changing the underlying dollar value of each investor's stake. For example, if before the split you had one Tesla share worth 1500$, then after the 5-to-1 split you will have 5 shares priced at 300$ each. As a result, you will have the same total money value, but more shares. Tesla said in a statement that the split is intended to "make stock ownership more accessible to employees and investors". By increasing the number of available shares, the company can attract new investors who might otherwise be put off by a further increase in the share price. Tesla shares are making a rally this year, despite the challenges presented by the coronavirus pandemic. Shares have risen by more than 200% since January to 1.374 dollars yesterday (and around +300% up to the all-time high), while its market capitalization has exceeded the valuations of Disney (DIS), Toyota (TM), and Coca Cola (KO). Find out what result we achieved with Tesla shares in the article "6-Month Summary". Apple (AAPL) also announced a stock split last week - its price has risen by more than 45% this year. The success of the two companies reflects the overall strong performance of the technology sector in a year that has been turbulent for Wall Street.

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Risk warning: This article is for information and education only, reflects the situation as of its publication date and does not constitute investment advice, an offer or a recommendation to buy or sell any financial instrument. Trading leveraged instruments (Forex, CFDs) and crypto-assets carries a high risk of losing your capital. Past performance does not guarantee future results. Before investing, assess your objectives and risk tolerance and, if needed, consult a licensed adviser. Details: Disclaimer & Risk Warning.