Shareholders of the e-car manufacturer get two additional shares for one share.
(Photo: dpa)
Dusseldorf The electric car maker Tesla splits its shares this Wednesday. One share becomes three after the close of trading on August 24th, ten becomes 30, 20 becomes 60 and so on. Tesla is thus following a trend: Other stock exchange giants such as Amazon and Alphabet have already split their shares this year.
The share split makes the paper more affordable and easier to trade. The following answers to eight questions clarify what this means for investors, whether they have advantages or disadvantages, how the share price behaved during Tesla’s last share split and why share splits are not visible in the price chart.
1. Why is Tesla doing a stock split?
If the price of a share rises sharply, it becomes visually more and more expensive. 100 euros can become 1000 or even 10,000 euros. However, it will then become increasingly difficult, especially for small investors, to invest in the company.
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