Tesla added nearly $84 billion to its stock market value on Monday, more than the entire market capitalization of Ford Motor Co., after the electric-automaker said it plans a second stock split in about two years.
Tesla said in a filing that it will take a vote at its upcoming annual shareholder meeting to increase the number of authorized shares to enable stock splits.
The news announced via a tweet helped add more fuel to the recent rally in Tesla’s stock. The company is the top gainer on the NYSE FANG+ index this year. On Monday, the shares closed 8% higher at $1,091.84, the highest level since January 12.
The last time Tesla split its stock was in August 2020. Its share price had increased by 743% that year, and the split was often cited as a reason that boosted profits.
Companies split their shares so that their share prices appear less expensive and attract more investors. However, splitting a stock does not affect its underlying fundamentals.
Tesla was the most-traded stock among Fidelity’s online brokerage clients on Monday, with buy and sell orders split almost equally, suggesting that retail investors are cautious about the company.
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