Do not worry, Tesla shareholders (who are pretty much all with a retirement account these days) – your efforts will still be worth the same. You will have three times more shares when all is said and done.
Although institutional investors with deep pockets do not care about the company’s overall share price, individual investors may be turned off by high-priced stocks. The growth of free-to-trade apps, including Robinhood, E-Trade and others, has made stock splits much more important in recent years.
Tesla said that they took these factors into account – as well as employees who get paid in the company’s shares.
The split is no guarantee that it will be included in the Dow, but the index may have the world’s most valuable car company and a pioneer in electric vehicles.
Shares in Tesla rose 1% in expanded trading.