Tesla Stock Split: Why It Matters
Investors are hungry for any sort of good news after Wall Street's brutal start to 2022. Inflation is high, consumer sentiment has cratered, and the market is swooning. Few events capture traders' attention like a blockbuster stock split. And while a stock split has no direct effect on the underlying value of a company, the ancillary effects of those moves can be pretty poignant.
If there's one stock that could use a positive catalyst, it's Tesla (NASDAQ: TSLA). The automaker's annual investor meeting will take place in early August, at which time the shareholders will likely vote to authorize an increase in the share count. That would pave the way for a stock split.
Tesla's revenue and profits have grown massively over the past decade. In 2012, the company posted less than $1 billion in sales. Fast-forward to 2021, and Tesla reported $53.8 billion in total revenue. In recognition of that, investors have rewarded it with a market cap that's larger than the next seven largest automakers combined.
Source Fool.com
