Don’t worry, Tesla stockholders (which is pretty much everyone with a retirement account, these days) — your stakes will still be worth the same. You’ll be holding three times more shares when all is said and done.
Tesla said it took those factors into consideration — as well as employees who get paid in company stock.
Tesla noted its stock has risen 43.5% since its last stock split, although shares have tumbled 34% this year as Big Tech and the broader market have taken a beating from inflation and higher interest rates. But Tesla, in particular, has struggled this year in part because of CEO Elon Musk’s attempt to leverage his massive Tesla stake to purchase Twitter.
The split is no guarantee that it will be included in the Dow, but the index may want the world’s most valuable car company and a pioneer in electric vehicles.
Shares of Tesla rose 1% in extended trading.