After yesterday's closure of the US market, Tesla's stock splits from 3 to 1. With the opening of the market today, the car manufacturer's stock trade will begin with an adjustment for a new price.
Although this measure does not promise any fundamental changes in Tesla's activities, the company's shares last year increased by 1.8 per cent, and the shareholders approved the equity split from 3 to 1 during the annual meeting that took place in Texas Austin on 4 August.
In theory, fragmentation means that retail investors ' access to company shares will be facilitated as the company ' s securities will become cheaper; in practice, first, the size of such shareholders ' investments is negligible compared to institutional investors ' assets; second, retail investors may have previously traded shares of Tesla.
Tesla herself explained the initiative by taking care of her employees: the company seeks to make the stock available to each employee and adjusts the value of the securities to them. After the fragmentation, investors will receive two additional shares for each of their employees as of 17 August 2022. The last break-up was almost exactly two years ago, in August 2020, from 5 to 1.