Tesla Stock Split: 5 Things You Should Know

On August 4, Tesla (NASDAQ: TSLA) declared that its shareholders had approved a 3-1 stock split for its shares.

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Investors who have a low-risk appetite generally purchase dividend stocks. Investors who want a part of their portfolio in ‘safe’ territory also opt to buy a certain amount of dividend stocks.

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Even though shareholders anticipated the stock split, Tesla’s stock, which was at $933 at the opening bell that day, opened the following morning with a nearly 2.6% decline.

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Five Things to Know about Tesla Stock Split

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A company may split its stock if it feels that the price of its shares has risen to the point where an average investor cannot buy them.

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1. Tesla’s Stock Split Will Make it More Affordable

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For most individual investors, Tesla has long carried a heavy price tag, with its stock price approaching $1,000 per share.

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The 3-1 stock split will change all that and spur more retail investment in the company.

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In terms of institutional ownership, many different funds own Tesla shares.

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