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 got cheaper. The new price is 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 got 2 additional stocks for each share they held. The split-adjusted stocks started trading on 25th August.
After a 3 for 1 split the prices will be around one-third of the of the prices before split. After the split, Stock is trading near 296