Tesla plans to make shares more affordable
Each paper will be divided into five parts. Based on this, each shareholder will receive four more shares to the existing ones, but the value of the package itself will not change. The process is scheduled for August 28 after the end of the trading day. From Monday, August 31, trading will begin with the terms of the changes.
The decision on the so-called split of shares was made in connection with a sharp jump in shares. In recent years, the value of securities rose to $1650, which made its securities unattainable for private investors with little capital. Dan Ives, an analyst at Wedbush, also reported that the high price of shares is a serious barrier for novice investors. Dan Levy, an expert at Credit Suisse, proved his words.
Tesla shares have risen three times compared to last year, when their value reached $413. At the time of the close of trading on Tuesday, the price was $1,374.37 per unit, according to the Nasdaq stock exchange. After the news of the stock split, they rose to $1,474.
Among other things, in July, the company’s management published its first earnings reports for four consecutive quarters. In this regard, Tesla is likely to be included in the S&P 500 — the list of the largest companies in terms of capitalization.
Apple plans to take the same step. Split announced for August 24th.