How much has Tesla gone up since split?

Topline

Shares of electric vehicle maker Tesla rallied in after-hours trading on Wednesday as the company’s 3:1 stock split went into effect, the second such move in around two years, as the world’s most valuable automaker looks to make its stock more affordable.

Table of Contents Show

Crucial Quote:
Key Background:
Chief Critic:
Big Number: $263.4 Billion
Further Reading:
Tesla's 3-for-1 stock split, first announced in early August, takes effect today
How much did Tesla rise after split?
Did Tesla stock go up after split?
What was the split price of Tesla?
How much will Tesla split in 2022?

Tesla’s stock has risen over 30% since announcing the proposed stock split in June.

Patrick Pleul/Pool via Associated Press

Key Facts

Tesla’s stock began trading on a split-adjusted basis after the market close on Wednesday, with each investor gaining roughly two additional shares under the latest stock split, which was approved by shareholders earlier this month.

Tesla first announced the proposed 3:1 stock split in June as a way to make the nearly $900 stock more affordable; based on today’s closing price the new share price would be just under $300 per share.

Though the stock is down roughly 25% this year amid the wider market selloff, billionaire Elon Musk’s electric vehicle maker has still seen its shares surge roughly 200% since the last stock split in August 2020.

Stock splits don’t impact a company’s market value, but evidence suggests that by making shares more affordable to retail investors, the move does often provide a short-term boost to share price.

Tesla shares are up roughly 25% since announcing the 3:1 split in early June, while news of Tesla’s 5:1 stock split roughly two years sent shares over 70% higher in the 20 days following the announcement.

Several other major tech companies have announced stock splits this year and saw subsequent spikes in their share price; Google-parent Alphabet’s split 20:1 in February and Amazon’s stock split 20:1 split one month later.

Crucial Quote:

“When stocks trade in a so-called comfortable range, everyday investors can more easily afford a piece of the company,” according to Lindsey Bell, Ally’s chief money & markets strategist. “That drives more interest in the shares and more interest means more people trading the stock.”

Key Background:

Tesla reported mixed second quarter earnings last month which largely beat analyst expectations. Production took a hit, however, worrying analysts as the company was impacted by ongoing supply chain disruptions as well as a factory closure in China that was due to Covid-related government lockdowns. Tesla’s quarterly revenue of $16.9 billion rose 42% from a year ago, though it fell from a record high of $18.7 billion in the previous quarter, ending the company’s streak of record profits. “In a nutshell, the quarter was better than feared with healthy guidance” for the rest of the year, which certainly “look[s] achievable with no margin for error," Wedbush analyst Dan Ives said following the earnings report.

Chief Critic:

Tesla shares are overpriced and could plunge more than 50%, according to Citi analysts, who maintain a “sell” rating on the stock with a $424 price target. “The current valuation remains challenging,” especially when considering that the few other companies that achieved a similar market cap did so by generating on average around $100 billion in annualized gross profit versus Tesla’s annualized profit of $20 billion in the first half of the year, the firm points out.

Big Number: $263.4 Billion

That’s how much Tesla CEO Elon Musk is worth, according to Forbes’ estimates. He is the world’s richest person.

Tesla's 3-for-1 stock split, first announced in early August, takes effect today

Published August 25, 2022

Tesla’s (TSLA) 3-for-1 stock split has arrived. The company declared the split in early August. Shares ended yesterday at $891, and began trading at roughly around $297 per share this morning.

Tesla implemented the split by paying a stock dividend of two shares for each share held after the close of trading. The stock split makes the shares less expensive, and more accessible for a wider base of retail investors. It also makes trading options in the stock less expensive.

When Tesla first proposed the stock split, it said the move was primarily intended to help the company “offer every employee the option of receiving equity” in Tesla, and that increasing employee satisfaction would help to maximize stockholder value.

The first time Tesla split its stock in August 2020, shares had gained 81% between the split announcement and the day the stock split. In the month following the split, Tesla shares dropped about 14%, but recovered in less than two months, and were up about 36% six months after the split.

"Shares of Tesla are up 28% since it announced its most recent split, but still down 16% for the year as investors have realized that it is not immune from a slowdown in spending, especially discretionary spending," said Caleb Silver, Editor-in-Chief of Investopedia.

How much did Tesla rise after split?

And one year later, Tesla shares had risen about 48% compared with the price on the day of the split. The stock did well, outperforming the S&P 500 at the three-, six-, nine-, and 12-month mark. Shares were up about 18 percentage points more than the S&P a year after the August 2020 split.

Did Tesla stock go up after split?

What was the split price of Tesla?

The stock opened at $302 and closed at $296.07 as the split allowed investors to get two additional shares for each they owned as of Aug. 17. It had closed at $891.29 before the split on Wednesday.

How much will Tesla split in 2022?

Investors will receive an additional two shares of Tesla for each one they already owned as of Aug. 17, 2022. Tesla's last stock split, on a 5-for-1 basis, was implemented in August 2020.