Tesla announced Tuesday a 5-for-1 stock split in an effort to bring the highly-price stock down to attract more investors.
According to a SEC filing: Each stockholder of record on August 21, 2020 will receive a dividend of four additional shares of common stock for each then-held share, to be distributed after close of trading on August 28, 2020.
The split wasn’t a total surprise, but it came sooner than expected. When asked on Twitter on June 30 about the possibility of a split, Musk said it was “worth discussing” at the company’s upcoming annual shareholder meeting.
Tesla’s stock has received a big bump in recent months, more than quadrupling since March. The stock jumped nearly 6.6 percent after the announcement to $1,465.00 by 7:30 a.m. Wednesday. The current valuation makes Tesla the largest automaker in the world.