On August 11, the day the manufacturer of electric vehicles announced a five-for-one stock split, Tesla’s shares closed at $1,374.39. Why did Tesla split its stock? The split means more retail investors can purchase Tesla stock, which closed at $1,374.39 yesterday and has more than tripled in value this year (+228% YTD). Tesla (ticker: TSLA) shares were set to open on Monday … Apple just announced its 5th stock split since 1987 beginning of August too, so Tesla appears to be following Apple’s footsteps when it comes to marketing. Please see the "Historical Prices" tab for adjusted price values. However, it's reasonable to expect that by Monday, Aug. 31, you'll be credited with the correct number of post-split shares. Market data powered by FactSet and Web Financial Group. Elon Musk, Tesla's CEO, likes to point out (correctly, so far) that analysts have been consistently wrong and that Wall Street keeps raising its earnings forecasts and price targets on the stock. This is the first time Tesla has ever done a stock split, and so there are many shareholders who aren't familiar with what the process looks like. The stock split came at the right time as Tesla shares have become lofty. Tesla shares soared in premarket trading Wednesday after Elon Muskâs electric car-maker announced a 5-for-1 stock split. If you don't want to deal with the split process and just want to buy post-split shares, you'll have that opportunity starting Aug. 31. Here's what you need to know about the share performance of companies that have previously split their stocks. In 2010, Elon Musk had big plans for Tesla. The split date is Aug. 28, 2020. All rights reserved. Returns as of 01/24/2021. Apple and Tesla just implemented stock spilts. The electric car company has been a favourite among our investors so far this year as it has been traded the most every month in at least one country that we are active in. They were trading up 5.9% at 468.83 at 10:34 a.m. The stock split adds to accessibility for investors, with Tesla lowering the bar for entry. TSLA stock will split 5-to-1 on August 31. However, stock dividends often have different rules. The stock split came at the right time as Tesla shares have become lofty. The automaker made the â¦ The stock has soared 229% this year, pushing its valuation to around $256 â¦ Tesla (NASDAQ:TSLA) jumped on the stock-splitting bandwagon recently. The price change will be more dramatic at Tesla, whose stock was trading at more than $1,500 a share on Wednesday. Tesla published an announcement on 11 August 2020 whereby share prices will become more affordable to investors with a 5-for-1 stock split. ET on InvestorPlace.com How These â¦ Taking effect from Monday, August 31st, the tech company has split its stock 5-for-1. in the electric-vehicle pioneer Tesla is splitting 5 for 1 after the market closes for trading. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Factset: FactSet Research Systems Inc.2018. Each shareholder of record as of Friday, Aug. 21, will be entitled to receive a dividend of four additional shares of common stock for every single Tesla share they own. Tesla has announced a 5 for 1 stock split after market close today, sending its stock (TSLA) jumping as much as 8% in after-hours trading. The split means more retail investors can purchase Tesla stock, which closed at $1,374.39 yesterday and has more than tripled in value this year (+228% YTD). New York (CNN Business) Tesla shares are much, much cheaper Monday after the stock's 5-1 split. Don't Count on It, SpaceX to Drill for Natural Gas Near Texas Starship Development Site, 3 Top-Performing Stocks That Could Fall 41% to 71%, According to Wall Street, Copyright, Trademark and Patent Information. Telsa will be splitting its stock at a 5-to-1 ratio. Different brokerage companies have their own procedures for handling their accounting records for stock splits. Tesla will be enacting a 5-for-1 stock split on August 31. There is a Tesla stock split in the cards. That's the day the split takes place. Tesla has been a favorite stock for day traders and other retail investors lately. Tesla (NASDAQ: TSLA) stock has officially split and had its trading price adjusted on August 31st, 2020. Tesla's announced five-for-one stock split, combined with an earlier four-for-one split at Apple, may persuade a few of the other high-flying tech stocks to make a similar move. Tesla's share price has been volatile, and even once the stock split is done, you can expect that volatility to continue. A dizzying rally in Tesla Inc.'s shares has unleashed a burst of options activity tied to the stock jumping even higher. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. Investors should expect the stock price to be roughly one-fifth what it was before the split was finalized. With a regular cash dividend, if you're a shareholder of record on the record date, you receive the dividend. This means that, upon the date of the split, for every one previous Tesla share, there will now be five. Tesla announces a 5-for-1 stock split Tesla announced a five-for-one stock split on Tuesday evening. All rights reserved. Tesla is the second high-profile company to announce a stock split in recent weeks, with Apple - Get Report announcing a 4-for-1 split of shares in … Tesla has announced a new five-way stock split to take effect on August 28th, which will make the companyâs shares cheaper for buyers. CNN Sans â¢ & Â© 2016 Cable News Network. Market Cap Stock split history for Tesla since 2021. Tesla Inc on Tuesday announced a five-for-one stock split, as the electric carmaker looks to make its shares more attractive to retail investors following a stunning rally this year. Shares of Tesla Inc. surged 8% on Wednesday, a day after the Silicon Valley car maker’s board approved a five-for-one split of the company’s stock. Split-adjusted, Tesla is currently just above $4,000 as I write. Finally, Monday, Aug. 31, is the date on which Tesla shares will finally start trading at post-split prices. So, now that Tesla’s officially represented in indexers’ portfolios, what happens next for Tesla’s stock price? Morningstar: Copyright 2018 Morningstar, Inc. All Rights Reserved. The New Statesman put up a … Rather than buying one Tesla stock for $450, you could own one-tenth of a stock for $45, or 1.1 shares for $495. … Tesla may also get a further boost if it is finally added to the blue-chip. You therefore shouldn't expect to see the new stock in your account right after the market closes on Friday. Tesla shares are now trading at $442.68, although they were trading at … Here, the ex-dividend date is one business day after the dividend actually gets paid. Following a similar move from iPhone maker Apple (NASDAQ:AAPL), Tesla decided to split its shares 5-for-1. After the split, you'll own 50 shares, but the basis for each share will be one-fifth of its previous amount, or $100 per share. Finally, Monday, Aug. 31, is the date on which Tesla shares will finally start trading at post-split prices. Tesla will be enacting a 5-for-1 stock split on August 31. Multiply that by 50 shares, and your total capital gains would be $15,000 -- the same amount as if you sold the shares before the split. Say you paid $500 per share for 10 shares of Tesla stock back in January. You must own Tesla shares as of this date to be eligible to receive the additional shares created by the split. Shares of Tesla Inc. surged 8% on Wednesday, a day after the Silicon Valley car makerâs board approved a five-for-one split of the companyâs stock. Shares of Tesla soared 6.5% in extended trading on Tuesday after the electric car maker announced a 5-for-1 stock split. The company plans to give investors five shares of stock â¦ Apple just announced its 5th stock split since 1987 beginning of August too, so Tesla appears to be following Appleâs footsteps when it comes to marketing. Tesla continues to be a big target of short sellers -- investors who borrow the stock and sell it with the hopes of eventually buying it back at a lower price. Apple is enacting a 4-for-1 stock split on the same date. When someone sells Tesla stock after August 21 and before August 28, they sell the stock dividend as well. If you're not, you don't. Apple and Google have done them as their share prices have risen, and it didnât hurt shareholders. Dan Caplinger has been a contract writer for the Motley Fool since 2006. That split at Wednesday's closing price would value shares at roughly $310. Illustration by Alex Castro / The Verge Tesla has announced a new five-way stock split to take effect on August 28th, which will make the company’s shares cheaper for buyers. The shares will begin trading on a split-adjusted basis on August 31. Shares of the automaker jumped 13% on â¦ Tesla is taking after Apple Inc., which Ives said other tech giants are likely to emulate. It will just grow the number of shares making up their portfolios. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on Fool.com. Instead, you'll need to adjust your cost basis to reflect the number of shares you now own. That happens officially after the stock market closes, so any trades that occur earlier that day are still governed by the pre-split stock price. 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Teslaâs 5-for-1 stock split. Nevertheless, it'll be interesting to see what happens next with Tesla's stock -- especially if the automaker keeps driving forward with its strong growth. This means that, upon the date of the split, for … Tesla (NASDAQ: TSLA) stock has officially split and had its trading price adjusted on August 31st, 2020. Today, Tesla TSLA stock traded for the first time since splitting 5-for-1 last Friday. At the close of trading on August 28, shareholders will receive five shares for every one they own. Tesla shares closed 12% higher today on its first day of trading post its stock split. The record moves for both companies come ahead of their prepared stock splits. Tesla's press release announcing the 5-for-1 stock split included three key dates that investors should understand. Apple is enacting a 4-for-1 stock split on the same date. Tesla Inc on Tuesday announced a five-for-one stock split, as the electric carmaker looks to make its shares more attractive to retail investors following a stunning rally this year. So far, the stock has soared more than 220 percent year-to-date. Therefore, if you sell your shares after what's known as the ex-dividend date, you still get to keep the cash dividend even though you no longer own the shares. On August 28th, each Tesla share will split into 5: if you own 1 share trading at $1.5K, you’ll suddenly have 5 worth $300. The stock closed at $498.32. The split will not change the value of investors' total holdings of the company. Tesla announced the stock split on August 11, and since that date its shares have increased by 81%, while in contrast the S&P 500 increased by 5%. Even though Tesla's stock closed 12.5% higher at $498.32 a share Monday, that's still … More Accessible. At Tesla’s current price-to-earnings ratio, it would take the company almost 1,600 years to make what the stock market says it’s worth. Tesla recently said it would enact a 5-for-1 stock split, making its wildly popular stock even more accessible to individual investors. That so-called "record date" would ordinarily be the sole determining factor in establishing who has the right to the additional stock that Tesla is issuing as a stock dividend in order to make the stock split happen. With Tesla Inc. (NASDAQ: TSLA) now claiming it wanted the shares more affordable for investors and employees, without having to spend close to $1,500 for a single share of stock, Tesla â¦ Tesla skyrocketed another 14% after announcing its 1st-ever stock split. Tesla on Tuesday announced a five-for-one stock split effective August 31. Even though Tesla's stock closed 12.5% higher â¦ Most stock quote data provided by BATS. Investors will receive four additional shares and the stock price will be one-fifth. Disclaimer. Tesla is the second high-profile company to announce a stock split in recent weeks, with Apple - Get Report announcing a 4-for-1 split of shares in â¦ Prices shown are actual historical values and are not adjusted for either splits or dividends. Trading on a split-adjusted basis will go into effect Monday. All content of the Dow Jones branded indices Copyright S&P Dow Jones Indices LLC 2018 and/or its affiliates. Tesla (NASDAQ: TSLA) has announced that its Board of Directors has approved a 5:1 split for the companyâs common stock in the form of a dividend. Stock Advisor launched in February of 2002. PALO ALTO, Calif., Aug. 11, 2020 (GLOBE NEWSWIRE) -- Tesla, Inc. (“Tesla”) announced today that the Board of Directors has approved and declared a five-for-one split of Tesla’s common stock in the form of a stock dividend to make stock ownership more accessible to employees and investors. New York (CNN Business) Tesla's stock jumped as much as 6% in after-hours trading Tuesday after the company announced a five-for-one stock split, set to go into effect on August 31… Friday, Aug. 28, is the date on which Tesla will actually distribute the four additional shares in its stock dividend. Tesla stock ascent continues on record date for 5-for-1 stock split Investors holding Tesla stock at the end of Friday will be due five new shares, likely priced at around US$400 each. The electric car makerâs stock is close to â¦ Each share of Tesla stock that an investor owns before Ex-Date (Aug 31st, 2020) will be eligible for stock split. Tesla is, of course, far from the first to do a stock split. Stock-split math and figures associated with it generally donât amount to much, but Tesla is the exception. Conversely, if you buy the stock after the ex-dividend date, you don't get the dividend payment -- even though it won't actually get made until after you've bought the stock. Even though the stock split is being handled as a stock dividend, you're not going to be subject to immediate tax on the shares you receive in the split. Teslaâs stock (TSLA) has surging to$2,000 a share ahead of the stock split and the shorts are running away. One thing that's extremely confusing is that the stock dividend that Tesla's using to split its stock doesn't work the same way as a cash dividend. If you sell before that date, you're selling away those rights as well. Cumulative Growth of a $10,000 Investment in Stock Advisor, Tesla's Stock Split: Here's What It'll Look Like When It Happens @themotleyfool #stocks $TSLA $AAPL, Tesla decided to split its shares 5-for-1, Will the Blue Sweep Boost Tesla? On June 22, 2012, Tesla’s stock opened at a split-adjusted $6.796. If you sell the stock immediately, you'd have a gain of $400 minus $100 or $300 per share. If you buy stock on or before Aug. 28, then you're also buying the right to receive the extra stock in the split. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. The stock has soared 229% this year, pushing its valuation to around $256 … On August 11, the day the manufacturer of electric vehicles announced a five-for-one stock split, Teslaâs shares closed at $1,374.39. The stock has soared in response, climbing well above $2,000 per share. Tesla announced a five-for-one stock split on Tuesday evening. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Tesla Stock: The Case For A $1 Trillion Market Cap Is Unplugged From Reality Jan. 22, 2021 at 5:01 a.m. New York (CNN Business)Tesla shares are much, much cheaper Monday after the stock's 5-1 split. New York (CNN Business)Tesla shares are much, much cheaper Monday after the stock's 5-1 split. So far, the stock has soared more than 220 percent year-to-date. Tesla shares â¦ The shares will begin trading on a split-adjusted basis on August 31. Tesla has rallied since announcing on Tuesday that it would enact a 5-for-1 stock split at the end of August. Therefore, the record date doesn't really matter. Each share of Apple stock that an investor owns before Ex-Date (Aug 31st, 2020) will be eligible for stock split. The split shares will begin trading at the new price on August 31, Tesla said. The Tesla (TSLA) stock split on 31 August 2020 was a five-for-one split, meaning that there are now five times the number of shares in circulation as there were pre-split, and historical share prices have been adjusted to one fifth of their pre-split value. A $77,400 investment would have been good for 11,389 shares of Tesla stock. With the stock currently around $2,000 per share, you can expect the post-split shares to be worth around $400. The record date matters, but there is no arbitrage for investors to exploit. Tesla shares are now trading at $442.68, although they were trading at â¦ There is a Tesla stock split in the cards. At Tuesday’s prices, the new stock price would be about $US274 per share. Take an example. On August 28th, each Tesla share will split into 5: if you own 1 share trading at $1.5K, youâll suddenly have 5 worth $300. Tesla skyrocketed another 14% after announcing its 1st-ever stock split. Fortunately, the mechanics of the split are relatively simple, but there are still some things you should understand upfront so you don't get any nasty surprises. Tesla will start trading on a split-adjusted basis Aug. 31. With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world. All times are ET.