3 Reasons Tesla Could Soar After Its Stock Split
Despite tough odds, plenty of doubters, and regular criticism over its actions, Tesla (NASDAQ: TSLA) has developed into the leading manufacturer of electric vehicles globally. The automaker has grown rapidly, and so has its share price. This has led management to announce a 3-for-1 stock split sometime later this year to make its stock more accessible to retail investors.
The decision to split the stock in 2022 comes not all that long after a 5-for-1 split in late August 2020, which reduced its price per share from around $2,300 to roughly $444. Like all stock splits, the increase in the number of shares and the resulting share price drop doesn't actually change the intrinsic value of each share or of the company overall.
Since that last split, Tesla's stock price has risen by about 64% to $725, thanks in part to the company's strong operational performance. If the 3-for-1 split occurred today, each share would be further reduced to a new price of roughly $242.
Source Fool.com
