Tesla Shareholders Approved a 3-for-1 Stock Split -- Is the Stock a Buy?
Tesla (NASDAQ: TSLA) recently hosted its annual meeting in Texas, where shareholders voted in favor of a 3-for-1 stock split. The split itself has yet to be scheduled, but it will be Tesla's second stock split in just over two years, and many investors see that as a bullish sign.
To be clear, splitting a stock has no impact on a company's market cap, a share's intrinsic value, or important fundamentals like profitability. Splits simply make a stock more accessible by lowering the share price. But lowering the price is only necessary after significant share price appreciation, which implies strong execution from a business perspective.
With that in mind, is it time to buy Tesla stock?
Source Fool.com
