In the recent Annual Meeting of the company, Tesla shareholders approved 3 for 1 split of the Tesla Stock.
When a company wants to reduce the prices of its stock, it increases the number of outstanding shares by a split.
After the split, shareholders who hold one share of tesla will hold three stocks of the company. Total Outstanding shares will be 3X
The Tesla share prices will get cheaper. Theoretically, it will be one-third of the price before split effect.
Stock splits don't affect the company's financials or overall valuation.
When a company's stock price rises above a limit, it becomes difficult for small investors to buy shares. So companies do stock splits to increase liquidity.
Those who hold stocks on record 17th August will get 2 additional stocks for each share they held. The split-adjusted stocks will start trading on 25th August.
On 5 August, Tesla Stock Closed at $864. After a 3 for 1 split the prices will be around one-third of the current prices. After the split price might be near $300.