Tesla Stock Is Rising Ahead of Its Stock Split

Shares of electric car maker Tesla (NASDAQ: TSLA) were trading sharply higher on Tuesday. The growth stock rose as much as 2.4%. While the stock lost some of these gains later in the day, shares were still up nearly 2% as of 12:50 p.m. ET.

The stock's gain is likely due to trading bets and hype surrounding the company's planned stock split this week. Tesla shares are splitting on a 3-for-1 basis. The stock will start trading on a split-adjusted basis on Thursday, Aug. 25.

Tesla stock has had a rough year, sliding about 16% year to date. But the stock's year-to-date return would have been much worse if it wasn't for a sharp recovery over the last three months. During this period, the stock is up more than 30%. This compares to a 6% gain for the S&P 500.

Source Fool.com