The Clap
Tesla (NASDAQ: TSLA) announced it would propose a 3-to-1 stock split amid a sharp sell-off in the stock.
The deets
The split would be in the form of dividends, & would mark Tesla’s second stock split in less than two years when it executed a 5-for-1 stock split in 2020.
Why this matters
Tesla is down more than 34% year-to-date, a sharper decrease than the three major indexes. Stock splits have recently proved to boost company stock prices as they become more affordable to retail investors. In fact, Tesla’s stock surged 60% over the period of announcing the split to the date of execution back in 2020.
