- Tesla has been meeting since announcing on Tuesday that it will approve a 5-for-1 share split in late August.
- Motorcycle stocks rose 13% on Wednesday and climbed to 6% on Thursday.
- Sharing shares does not change anything about the company in essence, but it should appeal to smaller investors.
- See Tesla trade directly at Markets Insider.
- Read more at Business Insider.
Tesla has rallied as investors hail the company announcing it will split its shares at the end of the month.
On Wednesday, a day after the company announced a 5-for-1share split, Tesla shares rose 13%. Motorists ’gains continued on Thursday, with shares up up to 6%, bringing the two-day total to 20%.
Sharing shares does not change anything radically for the company. But a lower price per share should appeal to smaller investors who may want to own Tesla shares but may not be at the stock price close to $ 1600. Tesla said the share split was created to “make stock ownership more accessible to employees and investors”.
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At the close of trading on August 28, Tesla shareholders will receive four additional shares for each share they own. The separate shares will start trading at the new price on August 31, Tesla said. This split in Wednesday’s closing price would value the shares at approximately $ 310.
Tesla stock has been a tear this year, driven by solid vehicle sales, blockchain revenue and its ability to be included in the popular S&P 500 index.
Tesla is about 280% year-on-date.
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