Tesla's soaring stock cracks $2,000 ahead of share split
The stock has jumped 45% just since Aug. 11, when Tesla announced a five-for-one stock split, with shareholders of record on Aug. 21 receiving four additional shares for each share they own, distributed after the close of trading on Aug. 28.
Shares of Tesla Inc surged past the $2,000 (£1,515) mark on Thursday for the first time as the electric car maker extended its recent rally ahead of an upcoming share split.
The company`s stock closed at a record high $2,001.83, up 6.6% for the day.
With many investors betting Tesla will be added to the S&P 500 <.SPX> after a strong quarterly report last month, the stock has surged over 300% in 2020.
The stock has jumped 45% just since Aug. 11, when Tesla announced a five-for-one stock split, with shareholders of record on Aug. 21 receiving four additional shares for each share they own, distributed after the close of trading on Aug. 28.
Thursday`s surge put Tesla`s stock market value at $372 billion, greater than all but seven of the S&P 500`s components.
Tesla`s stock is among the highest priced, per share, on Wall Street, and the Palo Alto, California-based company has said it was looking to make its shares more accessible to employees and investors.
However, with Robinhood and other brokerages increasingly letting customers by fractions of individual shares, the benefit of stock splits has become less obvious, making Tesla`s rally following the announcement of its stock split surprising to some professional investors.
Tesla`s stock is currently priced at an exceedingly high 148 times expected earnings, according to Refinitiv, and that valuation will not be affected by the upcoming stock split.
Tesla will start rolling out "made-in-China" Model Y vehicles at its factory in Shanghai starting in 2021, the Global Times tweeted on Thursday, citing an unnamed executive.
Investors expect important announcements when Tesla holds its long-awaited Battery Day on Sept. 22, the same day as its annual shareholder meeting.
The company is expected to present battery innovations, with analysts at Morgan Stanley predicting a company announcement on supplying “superior” battery packs to the auto industry.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
SRH vs GT IPL 2024 Ticket Booking Online: Where and how to buy SRH vs GT tickets online - Check IPL Match 66 ticket price, other details
Top 7 SWP Mutual Funds: Rs 50 lakh investment, Rs 70K monthly pension for 10 years, and Rs 42.30 lakh balance value; know more details
Gold and Silver rate today (May 13, 2024): Precious metal under pressure; yellow metal near Rs 72,400, white metal above Rs 84,600
SIP Returns: How Rs 3,000, 5,000, and Rs 10,000 SIPs can help you build retirement corpus of Rs 1.06 cr, Rs 1.77 cr, and Rs 3.53 cr
TBO Tek IPO Listing LIVE Update: Bumper Debut! Share list at 55% premium - Buy, sell or hold? Check Anil Singhvi's view
12:04 PM IST