Jermaine Filmore
Tesla said Tuesday that its board had approved a five-for-one split in its soaring stock.
The company’s share price has risen more than 500 percent over the last year, making Tesla one of the most highly valued car companies in the world, even though it sells far fewer vehicles than its industry peers. Tesla’s shares closed at $1,374.39 on Tuesday and jumped more than 6 percent in extended trading.
Investors will receive a dividend of four additional shares for each share they own on Aug. 21. Those shares will be distributed after trading closes on Aug. 28 and the stock will begin trading on a “split-adjusted basis” on Aug. 31, the company said in a brief statement.
Tesla surprised analysts last month when it reported a profit of $104 million in the second quarter despite having closed its main factory in Fremont, Calif., for nearly two months because of the coronavirus pandemic. That profit positioned the company for inclusion in the S&P 500 index, which could prompt a surge in demand from mutual funds and other large institutional investors.
Jermaine Filmore 