Tesla stock split: Here’s what you need to know
New York (CNN Business)Tesla shares are much, less expensive Monday after the stock’s 5-1 split.
Even though Tesla stock closed 12.5% higher at $498.32 a share Monday, that’s still around $1,800 cheaper than where it had been trading on Friday. the corporate announced the split earlier this month, making shares cheaper for average investors.
The split won’t change the worth of investors’ total holdings of the corporate . it’ll just grow the amount of shares making up their portfolios. Tesla (TSLA) stockholders are becoming four shares for every share they held last week.
Tesla continues to be an enormous target of short sellers — investors who borrow the stock and sell it with the hopes of eventually buying it back at a lower cost .
Tesla CEO Elon Musk likes to mean (right, so far) that analysts are consistently wrong about any company that Wall Street continues to raise its earnings forecasts and price targets on the stock.
Tesla can also get an extra boost if it’s finally added to the blue-chip S&P 500 index (INX) — a move that would soon happen now that the corporate has posted a uniform run of profitable quarters.
Apple (AAPL) also started trading Monday after its split with shares now about $400 cheaper after its 4-1 split. Apple stock is now trading at $129.04 per share, after gaining 3.4% Monday. That’s compared to about $500 last week.
Reported by: CNN