Will Tesla Finally Split Its Stock?
Many investors pay a lot of attention to stock splits, even though they do nothing directly to boost the value of a company. Even though splitting a stock only gives shareholders a larger number of lower-priced shares, some see such moves as indicating long-term confidence in a company's business prospects.
For electric-car maker Tesla (NASDAQ: TSLA), confidence from CEO Elon Musk and his executive team has never been lacking, but investors have never gotten a stock split from the company. Now that Tesla has climbed into the mid-$300s, some diehard split advocates are wondering whether the automaker could finally pull the trigger with a move in the near future.
Many companies with longer histories have already done stock splits in the past, so investors can look at what motivated past moves in deciding what conditions would need to be present in order to justify similar decisions in the future. Tesla, however, has never done a stock split, so we can only infer what might cause the company to split its shares by seeing what hasn't been sufficient in the past to spur Tesla to action.
Source: Fool.com