Tesla (NASDAQ:TSLA) is splitting its shares in a 5-for-1 exchange, a move timed to make the stock price less expensive for individual investors after a recent run-up in valuation making it the world’s largest automaker by market cap.
Its shares surged on the news in aftermarket trading.
The Silicon Valley EV maker said Tuesday each shareholder of record on 21 August will receive a dividend of 4 additional shares of common stock for each then-held share. It will begin trading on a split-adjusted basis on 31 August.
At their highs, the shares on 20 July marked a closing high at 1,643, more than 4X the low in March at 361.22. In aftermarket trading Tuesday, Tesla rose as much as 8.4% at 1,490.
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