Shares of Tesla (TSLA) are on the rise on Wednesday after the electric car maker announced a five-for-one stock split “to make stock ownership more accessible to employees and investors.
Shares of Tesla (TSLA) are on the rise on Wednesday after the electric car maker announced a five-for-one stock split “to make stock ownership more accessible to employees and investors.” Commenting on the news, Wedbush analyst Daniel Ives called it “a smart strategic move at the right time.”
STOCK SPLIT: On Tuesday, Tesla announced that the board 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.” 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.
SMART’ STRATEGIC MOVE: In a research note to investors following the announcement, Wedbush analyst Daniel Ives noted that Tesla is following the lead of Apple (AAPL), adding that he ultimately expects more tech giants to potentially head down this path over the coming months as the parabolic rally in tech and electric vehicle names over the past five months has put companies in a position of strength to make such moves.
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