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.

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.

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.

Five Things to Know about Tesla Stock Split

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.

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

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

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

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

Vanguard and Blackrock, which hold more than 65 million and 55 million shares, respectively, are two of the largest of 3,000 institutions that own Tesla’s shares.