Tesla 2nd Stock Split in 2 Years in 2022

  • Ian Fan by Ian Fan
  • 1 year ago
  • Money
  • 0
close up of illuminated text against black background
close up of illuminated text against black background
Photo by Pixabay on Pexels.com

What does the number 2 have to do with Tesla (TSLA)?

On 4th August 2022, Tesla shareholders confirmed and announced it’s 2nd stock split at 3-for-1 in just 2 years. Tesla shares were trading at $925 on the day of Tesla’s annual shareholder meeting for 2022. The stock split is expected to take effect later in August.

A stock split doesn’t influences a company’s value, it makes it more affordable for retail investors. Stock splits increase the number of outstanding shares while simultaneously decreasing the cost of each share.

At a 3-for-1 split, the new share price is estimated to be at around $300 range post-split (based on the current $800-900 share price).

Let’s look back in 2020 and forward in 2022

Back in August 2020, Tesla made it’s 1st stock split at a 5-for-1 ratio. For every one share, the shareholder gains additional four shares; thereby making it 5 shares total.

It was trading at $1568 when the share split in August 2020. After the split, it became around $310 per share.

Since then, the share price has increased 175%!

If a investor had bought 1 share pre-split in 2020 and held on with the 5 shares until the next split in August 2022, the investor will gain 10 shares. That’s a 10-for-1 stock split. This is due to the 3-for-1 share split, because for every 1 share, the investor gains additional 2 shares.

Hence, 10 shares in 2 years from 2020 to 2022.

This is not financial advice. Do your own due diligence and invest at your own risk. Invest safely.

Subscribe for Updates

for latest in real estate, investment, finance, and home tips!

Leave a Reply

Compare listings

%d bloggers like this: