How Tesla Shares Will Get Cheaper?

In the recent Annual Meeting of the company, Tesla shareholders approved 3 for 1 split of the Tesla Stock.

Annual Meeting

What Is Stock Split

When a company wants to reduce the prices of its stock, it increases the number of outstanding shares by a split. 

Tesla 3 For 1 Stock Split

After the split, shareholders who hold one share of tesla will hold three stocks of the company. Total Outstanding shares will be 3X

 Stock Will Be Cheaper

The Tesla share prices will get cheaper. Theoretically, it will be one-third of the price before split effect.

Fundamentals Don't Change

Stock splits don't affect the company's financials or overall valuation.

Why Companies Split

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.

Tesla Stock Split Date

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.

Stock Prices After Split

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.

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