Tesla shares are up 12.6% againSeptember 1, 2020
Tesla Inc. Shares rallied again on Monday after a stock split took place, drawing more attention from investors.
Tesla shares surged another 12.6% to $ 498.32, boosting the market cap of electric vehicles to about $ 464 billion and making them more valuable than big companies like Walmart and Johnson & Johnson.
Tesla split its shares 5 to 1, joining Apple’s 4 to 1 division on Monday, with both companies saying they are looking to make their shares more accessible to individual investors.
Robinhood and other brokerages are increasingly allowing clients to buy stakes in individual stocks, making the benefits of a stock split less obvious. According to the S&P Dow Jones, only three members of the S&P 500 announced the split in 2020, up from 12 in 2011.
The success of Apple’s and Tesla’s split may prompt executives of other high-stock companies to consider their own split. Both Silicon Valley companies have a huge following among individual investors.
In recent sessions, Apple and Tesla were the top-selling stocks at brokerage Fidelity. Tesla shares are up more than 70% since the split was announced on August 11.
Tesla shares, trading at over $ 2,000 on a split-adjusted basis on Friday, had one of the highest prices on Wall Street. Tesla shares are up nearly 500% this year, while General Motors and Ford Motor Co. fell due to the effects of the COVID-19 pandemic.
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