Tesla has decided to split its share on Wall Street by three in order to make it more accessible to its employees while hoping to conquer small shareholders.
Divide and rule ? Still, Tesla will split its stock on Wall Street, dividing it by three. This is not the first time that the electric vehicle manufacturer has made an adjustment of this type since in 2020 already, Elon Musk had already divided the Tesla action by five. This strategy of drop in share price, currently around $700, could give shareholders “more flexibility to manage” their sharessays the company, which believes that a new stock split “will also make our action more accessible to individual shareholders”.
A bet on the small carrier
Remember that a stock split does not change the total value of a company. It simply changes the number of shares outstanding. Every company that does it – Tesla is far from the only one using it – bets thatat a lower price, a share will attract new small investors. The increase will be voted on at the group’s general meeting on August 4.