Investors Tesla approved the fragmentation of shares 3 to 1

Investors Tesla approved the fragmentation of shares 3 to 1

Tesla's stockholders approved the initiative the previous day to split the company's securities from 3 to 1, assets that have been valued since May, and to date cost $925.9 per share — a reduction in the number of nominals will attract more retail investors.

For the first time in late March, the company announced the idea of fragmenting shares, which would reduce their price to just over $300, but the time frame for the procedure has not yet been announced. The four months since the announcement, Nasdaq 100 added almost 20% to the June minimum, while Tesla's paper showed a more dynamic trend, leaving even S&P 500 behind — it has increased by almost 50% since the end of May.

July, during which the car manufacturer's shares added 32% to the price, has been the best month for the company since October. The current success in the Tesla stock market is due to a positive quarterly report, as well as a new legislative initiative by the US President's administration, which has decided to introduce tax incentives to increase the use of clean energy. However, there are still current and negative factors: supply chain failures, tensions between the US and the PRC, and the upcoming trial of the head of Ilon Mask on Twitter. This year's fragmentation of the Alphabet and Amazon shares has not given the assets of the two giants any impetus.

For Tesla, the upcoming fragmentation will be the second in less than two years, the last time it took place in August 2020, bringing the company ' s assets up 70%. The difference with Alphabet and Amazon is that Tesla has a really strong retail investor community that buys the car manufacturer ' s securities on specialized platforms.