The stock of Tesla is up more than 200% this year. Meanwhile, shares of General Motors and Ford Motor fell due to the impact of the coronavirus epidemic.
Tesla’s shares tripled so far this year to give the automaker a market value of $256 billion – nearly three times more than the combined value of long-established rivals Ford Motor, General Motors, and Fiat Chrysler.
The rapid run-up in Tesla’s stock propelled by a widening belief that the company has fixed its past manufacturing problems. It is also seen as moving to widen the appeal of its vehicles beyond the luxury niche with a series of new models.
A stock split scheme is a way for a company to make it’s stock more accessible to the public. However, brokers increasingly allow customers to buy a share of the stock, making the benefits of a stock split less obvious than before.
Tesla said stockholders of record on Aug. 21 would receive four additional shares after the close of trading on Aug. 28, with the stock trading on a split-adjusted basis beginning Aug. thirty first.
This stock split has been rare in recent years. Tesla in July posted a second-quarter profit as cost cuts and strong deliveries helped offset coronavirus-related factory shutdowns, clearing a hurdle that could lead to the carmaker’s inclusion in the S&P 500 index.