Why Tesla Stock Went Parabolic on Monday

Electric car star Tesla (NASDAQ: TSLA) floated plans this morning to "increase ... the number of authorized shares of common stock ... in order to enable a stock split of the Company's common stock in the form of a stock dividend." Don't be confused by the terminology: A "stock dividend" is just another way of saying that Tesla wants to split its stock, awarding folks who already own Tesla shares some extra shares -- it doesn't affect the value of those shares, and it doesn't imply the paying of any actual dividends.

Nevertheless, Tesla stock responded immediately, up 8% as of 11 a.m. ET.

Image source: Getty Images.

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Source Fool.com