- Tesla has been recovering since announcing on Tuesday that it will do a 5-to-1 stock split by the end of August.
- Shares of the automaker rose 13% on Wednesday and up 6% on Thursday.
- The stock split doesn̵7;t fundamentally change anything for the company but will appeal to smaller investors.
- Watch Tesla trade live on Markets Insider.
- Read more on Business Insider.
Tesla rebounded as investors cheered the company’s announcement that it would split its stock by the end of the month.
On Wednesday, the day after the company announced a 5-for-1 share, Tesla’s stock rose 13%. The automaker’s gains continued on Thursday, with shares up 6%, bringing the two-day total to 20%.
A stock split doesn’t change anything fundamental about the company. But the lower price per share will attract smaller investors who might want to own Tesla stock but not at around $ 1,600. Tesla says the stock split is designed to “make it easier for employees and investors to access stock ownership.”
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At the end of the August 28 session, Tesla shareholders will receive an additional 4 shares for each share they own. Tesla says the shares will start trading at a new price on August 31. That split at Wednesday’s close will value the stock at around $ 310.
Tesla shares have plunged this year, fueled by solid car sales, massive earnings, and the ability to qualify for the popular S&P 500 index.
Tesla is up about 280% year-to-date.
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