The announcement comes as the electric vehicle maker's shares have slumped 42% this year.
June 10, 2022 / 6:01 PMTesla on Friday said it is planning a 3-for-1 stock split, partly to make its shares"more accessible" to retail investors. The announcement comes after the company's shares shed 42% of their value this year.
Stock splits don't change the value of a company. For instance, investors in a company with a stock trading at $100 that does a 2-for-1 stock split will simply own two stocks worth $50 each — the value of their two new shares are the same as their prior single share. Yet companies that engage in stock splits often outperform the market,That could be due to investors buying shares in a company after a split because of the perception that the stocks are more affordable.
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