Five for One Stock Split announced by Tesla

Following the soaring of its stock, the Tesla board has announced a five for one stock split.

Tesla which is currently one of the most highly valued car company has seen its shares rise at a tremendous rate over a short period. The company’s share price has risen more than 500% over the last year.

Its shares rose above 6% in post-market trading on Tuesday evening. With this stock split, nothing changes about this stock.

Tesla's stock is up 9 percent today following the news about the stock split. 

The stock split would have investors on August 21, receive a dividend of four additional shares for each share they already own in the company. The distribution of the shares will be made after trading comes to an end on August 28.

After distribution trading will then begin on a stock-split adjusted basis on August 31, 2020, and the approval by the board of directors would make stocks more available to both employees and investors.

Tesla (TSLA) has had its shares grow at a rapid rate this year, with its shares being 228.54% year to date.

Reporting a profit of $104 million last month, for its second quarter even with its major factory located in Fremont, California being shut down for about two months as a result of the coronavirus pandemic.

Its fourth straight quarter of profits has put the company in a position to be included in the S&P 500 index, and this could bring about a boost in demand for mutual funds and large institutional investors.

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