Toronto, Ontario — Tesla will split its stock for the first time in its history so more investors can afford to buy shares in the company—this followed an exponential rise in the automakers market value.
The five-for-one stock split announced Tuesday, August 11 will not change how much Tesla is worth, but it will reduce the price of its shares by 80 per cent when it’s completed on Aug. 31.
Stock splitting allows a wider range of people to invest in a company, and often makes it seem as though a stock is on sale.
Following Tesla’s announcement the company’s shares surged 6 per cent to $1,459 in extended trading.
This decision marks the first time that Tesla has split its stock since the company went public at $17 per share a decade ago.
Tesla’s shares already have tripled so far this year to give the automaker a market value of $256 billion.
