Late Tuesday, the electric car manufacturer, Tesla broke the news that they were providing a 5-for-1 stock split. In after-hours trading, the stock surged 6% and this should in turn, provide smaller investors access to the stock at a lower price. How much, is questionable, because of institutional investors holding a majority of shares.
“Each stockholder of record on August 21, 2020 will receive a dividend of four additional shares of common stock for each then-held share, to be distributed after close of trading on August 28, 2020. Trading will begin on a stock split-adjusted basis on August 31, 2020,” Tesla said.
They recently announced a $1.1 billion gigafactory in Austin, TX
This is a breaking story. Stay tuned for additional details.