Tesla to split stock 5-for-1 at the end of August

Andrew Cummings
August 13, 2020

Image: Tesla stock price at the time of writing.

Each stockholder of record on August 21 will receive a dividend of four additional shares of common stock for each one they own, the electric-car maker said Tuesday in a statement. Right now, Tesla shares are valued at $1,374 a piece, which may sound like a lot for someone wanting to own at least one Tesla share.

In a press release Tesla said its board of directors had approved the five-for-one stock split.

Each stockholder of record on August 21 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. The company's shares surged 6 per cent to $1,459 in extended trading after the news about the split came out. Then, the price of the stock will be adjusted to 20 percent of the original price.


Tesla Inc.is splitting its richly valued shares in a 5-for-1 exchange, a move created to make the stock less expensive for individual investors after the company become the world's most valuable automaker.

It seems August 2020 is a popular month for tech companies getting in on the stock splitting game. Incidentally, those tweets also sent Tesla share prices rocketing at the time.

On Tuesday, the company announced its first ever stock split.

However, analysts say splitting shares could make trading easier, because it is easier to trade full shares between stockbrokers than it is to trade fractional ones.


A stock split could take Tesla's stock surging higher, something that Apple has benefited from in the recent days. Those factors often spark rallies after a split is announced. Tesla has stated it will be offering a five-for-one stock split in the near future.

It was Apple's fifth stock split since the firm started trading publicly.

Less than a month later, it had hit a high of more than $1,640.


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