Shares of Tesla rose more than 6% in early trade Monday after Elon Musk’s electric carmaker announced plans to split its shares.
Tesla will ask its shareholders to approve a plan to increase the number of its authorized shares a filing with the Securities and Exchange Commission.
Shares of the company rose to their highest level in two months when Wall Street trading opened Monday.
It’s unclear how many more shares the company intends to approve. Shareholders will be asked to approve the move at an upcoming meeting scheduled sometime this year.
“We view Tesla’s move, following the likes of Amazon, Google and Apple, and initiating its second stock split in two years, as a smart strategic move that will be a positive catalyst for the future of stocks,” said Daniel Ives, Analyst at Wedbush.
“Tesla has a strong momentum going into the remainder of 2022, with the biggest overhang of Berlin and Austin now opening in the rearview mirror.”
The world’s richest man danced on stage Tuesday as Tesla officially opened its $5.5 billion manufacturing facility in Germany — an event delayed by months due to local opposition from some government officials and environmental activists.
Musk presented the first Tesla Model Y to 30 customers in attendance at the event and praised the start of production of what his company is calling Gigafactory Berlin.
Chancellor Olaf Scholz was also present.
Meanwhile, around 15,000 people are expected to attend the official opening of Tesla’s Gigafactory near Austin, Texas next month.
The last time Tesla split its shares was in 2020 when it announced a 5-for-1 split. Since then, Tesla stock has more than doubled.
Stock splits increase the number of shares in a company while decreasing the value of each individual share. They are usually initiated after a sharp rise in the stock price.
https://nypost.com/2022/03/28/tesla-shares-soar-after-electric-car-maker-announces-stock-split/ Tesla shares surge after the electric carmaker announced a stock split