Tesla Files for a 3-for-1 Stock Split. Will It Fuel a Bounce?

Electric vehicle manufacturer Tesla (NASDAQ: TSLA) could soon be joining the 2022 stock-split club that already includes Amazon, Alphabet, and Shopify. Paperwork filed with the Securities and Exchange Commission (SEC) late Friday reads that the company intends to increase its total number of authorized shares in order to "facilitate a 3-for-1 split of our common stock in the form of a stock dividend."

This may result in a much-needed rebound effort from the stock. Shares are down more than 40% from their November highs, leading weakness being mirrored by many technology names, including the aforementioned Amazon and Alphabet. Both stocks perked up in response to announcements that splits were forthcoming. And, at least for Amazon, the split appears to have provided something of a bullish bump, even if it was ultimately unwound by the market's bigger bearish tide in the meantime.

It's also possible investors have already figured out that stock splits don't actually make a company more profitable. They just divvy up value using a different baseline share count.

Source Fool.com