Retail investors set to benefit from Tesla’s stock split
25th August 2022 12:20
by Jemma Jackson from interactive investor
Share on
interactive investor comments on the electric car maker’s move.
Commenting, Victoria Scholar, Head of Investment, interactive investor, says: “As anticipated, shares in Tesla Inc (NASDAQ:TSLA) are now trading at around a third of their price from yesterday. Existing shareholders will receive two extra shares for every share they held previously, swapping each share valued at roughly $900 for three shares now valued at around $300 each, thereby unaffecting the value of each investor’s overall holdings in the company.
- Discover more: Buy international shares | Interactive investor Offers | Most-traded US stocks
“Tesla is an extremely popular stock among retail investors and often among the most-bought stocks on the interactive investor platform. The second stock split in as many years is designed to make sure that smaller investors aren’t getting priced out of the market and are able to afford shares in the company. With Tesla’s share price rallying off the June lows, heading back towards quadruple digits, now seems like as good a time as any to reduce the price of a Tesla share by roughly 66%, broadening the stocks accessibility to a wider pool of smaller investors.
“Investors continue to be drawn to Tesla thanks to its well-deserved place at the centre of the shift towards climate-friendly technologies and the mega-trend away from petrol and diesel vehicles towards electric cars, instead. Although this is a constant tug-of-war between the bulls and the bears, as a divisive stock with a CEO who is no stranger to controversy, most analysts on Wall Street are optimistic on Tesla with a majority of buy recommendations on the stock.”
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.