Tesla Announces 5-for-1 Stock Split, Shares Up 6% in After-Hours Trading
After Apple recently announced a 4-to-1 stock split, it now appears another major tech company is following suit.
Tesla announced this afternoon a 5-to-1 stock split is coming at the end of the trading day on August 31, 2020, as reported by Tesla North.
The electric carmaker says its Board of Directors “has approved and declared a five-for-one split of Tesla’s common stock in the form of a stock dividend to make stock ownership more accessible to employees and investors.”
Tesla adds in its press release, “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. Trading will begin on a stock split-adjusted basis on August 31, 2020.”
The move means smaller investors will be able to theoretically afford Tesla’s share after the split, as the stock price for each share will fall by 80%.
News of the announcement sent shares of Tesla up over 6% in after-hours trading, at $1,460 USD per share as of writing.