Tesla (NASDAQ: TSLA) shares adjusted in price this morning following the implementation of a 3-to-1 stock split. Tesla shares officially reopened this morning at $302.36.
After shares closed yesterday at $891.29, the shares reopened this morning at the price of $302.36. Various things, such as stock movement during after-hours and pre-market trading and the number of outstanding shares, affect where the price opens and how it differs from the price the stock closed at on the previous trading day.
Tesla announced in June that its Board of Directors had moved to execute a 3-to-1 stock split through a 14A filing with the SEC. The split “would help reset the market price of our common stock so that our employees will have more flexibility in managing their equity, all of which, in our view, may help maximize stockholder value,” according to Tesla.
The stock split is also meant to help retail investors. “In addition, as retail investors have expressed a high level of interest in investing in our stock, we believe the Stock Split will also make our common stock more accessible to our retail shareholders,” Tesla added in the filing.
Tesla also performed a stock split at a ratio of 5-to-1 in August 2020. That split sent shares to $442.68 from $2,213.40.
Tesla shares were trading at $294.06 at 9:50 a.m. in New York.
Disclosure: Joey Klender is a TSLA Shareholder.
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