Tesla Shares Close Lower After 3-1 Stock Split

Highlights
Tesla Inc's shares closed 2% lower on Thursday as a three-for-one stock split announced by the world's most valuable automaker to woo retail investors came into effect.
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.
This is the second stock split by Tesla in as many years and follows similar moves by high-growth companies such as Amazon.com and Google-parent Alphabet to address the growing need to diversify investor base.
Stock splits "certainly have a higher appeal to retail investors and makes their options more affordable as well," said Art Hogan, chief market strategist at B. Riley.
"Retail investors are a very important cohort for Tesla and today's stock split is an acknowledgment of that fact."
Austin-based Tesla debuted in 2010 at $17 and in a decade surged to a peak price of $2,000, becoming one of the highest priced shares on Wall Street and making it difficult for small investors to bet on the high-growth stock.
The company decided to split its stock on a five-for-one basis in August 2020 and breached $1 trillion in market capitalization in 2021.
The EV maker is the sixth company in the S&P 500 index to split its shares this year, according to Howard Silverblatt, senior index analyst for S&P and Dow Jones indices.
Tesla's ticker was trending on social media stocktwits.com, indicating increased chatter among individual investors. The shares have lost about 11% of their value since March when the company announced plans to increase its number of shares.
"In typical buy-the-rumor, sell-the-news style, investors tend to drastically scale back purchases of splitting stocks in the weeks ensuing the effective split date, causing price momentum to slow," analysts at Vanda Research said in a note.
A stock split does not affect the fundamentals of a company, but makes it easier for individual investors to do small trades. The benefits of such splits, however, are becoming less clear as brokerages let customers buy parts of a company's share.
Tesla's shares have fallen about 16% so far this year amid a selloff in high-growth stocks due to worries over aggressive interest rate hikes and geopolitical uncertainties.
(Reporting by Akash Sriram and Medha Singh in Bengaluru; Additional reporting by Devik Jain; Editing by Sriraj Kalluvila and Arun Koyyur)
Great Deals on Used Cars
View All Used Cars
- 44,300 km
- Diesel
- Automatic

- 84,000 km
- Petrol
- Automatic

- 77,000 km
- Diesel
- Automatic

- 47,549 km
- Diesel
- Automatic

- 76,000 km
- Diesel
- Automatic

- 76,000 km
- Diesel
- Manual

- 62,500 km
- Diesel
- Automatic

- 81,000 km
- Petrol
- Manual

- 85,000 km
- Diesel
- Manual

- 41,000 km
- Petrol
- Manual
Upcoming Cars










Upcoming Bikes










Explore More
Latest News
Related Articles

10 hours ago
A strong push during the festive season helped Ola Electric achieve its highest-ever monthly sales, retaining its number-one position in the market.

11 hours ago
Gauhar Khan and her husband, Zaid Darbar, were pictured together at the dealership in Mumbai while taking delivery of their new Mercedes.

11 hours ago
Hero MotoCorp’s cumulative sales for November 2023 stood at 491,050 units, witnessing a 25.61 per cent increase year-on-year

12 hours ago
The bikemaker’s cumulative motorcycle sales for the year 2023 stood at 621,672 units, reflecting a 13 per cent increase.

12 hours ago
In the previous month, the automaker sold a total of 11,891 units, marking a growth of 24 per cent as compared to the same month last year.

13 hours ago
At present, India’s largest carmaker holds just a little over 2.06 lakh open bookings, nearly a third of which are for the Ertiga.

14 hours ago
New variant of the Chetak scooter gets some changes as compared to the Premium variant currently on sale.

15 hours ago
The cumulative sales for the Calendar Year 2023 reached 2,10,497 units - a 40 per cent growth over 2022

3 days ago
The updated Tesla Model 3 gets the “Active Hood” feature to reduce pedestrian injuries in the event of a collision

14 days ago
A YouTuber from Vietnam recently shared videos and images of his fully functional Cybertruck replica made out of wood and caught the attention of Tesla co-founder and CEO, Elon Musk.

18 days ago
While company chief Elon Musk was unable to meet in person due to health reasons, he expressed his honour in having the Indian minister visit Tesla’s manufacturing unit

23 days ago
Lucid customers will gain access to over 15,000 Tesla Superchargers across North America.
