D.he American electric car maker Tesla has announced a 5-for-1 share split. Shareholders will receive four more share certificates for each share, the company announced on Tuesday. This should enable more employees and investors to acquire shares. The split should take effect on August 31.
Since a stock split can increase the buying interest, offshoots reacted happily and drove the Tesla price in after-hours trading up 6.5 percent to more than $ 1,464. At times the rate reached $ 1,490. Regular trading ended on Tuesday 3 percent in the red at $ 1,374.
The move comes as a surprise insofar as CEO Elon Musk had only wanted to discuss a split at the general meeting in the second half of September at the end of June.
Analysts think, however, that the move comes at the right time to benefit from the recent upward trend in Tesla shares. Dan Ives, an analyst at Wedbush, told Bloomberg news agency that this is a smart move at a time when appetite for stocks and electric car stocks are gaining traction. Tesla follows Apple, which recently announced a 1: 4 stock split. Ives expects other technology companies to follow suit soon.
Tesla’s share price more than quadrupled to $ 1,654 from mid-March to mid-July and then consolidated somewhat. Part of the price gains stems from speculation that the stock will soon be added to the S&P 500 index after the company closed a number of profitable quarters. Then it would become the default value, which would lead to further purchases from index and other funds.