We explain why?

Wall Street is on fire. Tesla share will be divided by five.

logo

Tesla has a busy schedule for the next few weeks, and the events in question are going to have a big impact on the stock market. We are thinking in particular of September 22, when the car manufacturer has invited its shareholders to a “Battery Day”. This will be an opportunity for him to present his latest technological advances in the field of batteries.

In the stock markets, Tesla stock is peaking. It could even lead to the arrival of TSLA stock on the S&P 500 in the coming months. An exceptional situation that places the brand among the most influential and successful companies in the United States.

But we must believe that Elon Musk did not see only advantages to this spectacular rise in the price. The CEO said overnight that he was going to operate a stock split. The goal: to make access to company shares more accessible for smaller investors, by dividing the price of each share by five.

To do this, the operation will simply consist of multiplying the number of shares on the market by dividing each of the securities by five. Thus, the holders of shares in the company at present will not see anything change, except that they will have five times as many shares.

For new investors, however, the benefit will be a much more accessible Tesla share, compared to the more than $ 1,300 a single share currently costs. As of August 29, the day this decision comes into effect, Tesla’s price could soar at the idea that a gigantic number of new shareholders will come and collect shares.

 

Since the start of the year already, it’s stock market valuation has tripled. For all the specialists regretting that its course is oversized compared to reality, the speculations around this stock split could bring Tesla into another dimension. The direction of the 500 billion dollars on Wall Street? Yesterday, after the close, the TSLA share price was already climbing 7% to $ 1,463.