Shares of electric vehicle (EV) maker Tesla Inc stole the attention in trading As of today, Friday (26/8/2022), after the company split the value of its shares (stock split) for the second time.
Shares of Elon Musk's company rose from 1.5 percent to $301.5 in premarket trading.
Tesla shares closed at $891.29 in late trading Wednesday (Thursday morning WIB), before the three-share-for-one (3-1) split began.
"Tesla knows they need to maintain their influence with the retail crowd, especially after last year's plus retail investors flexing their muscles," said Callie Cox, an analyst at trading and investment platform eToro.
The EV maker's shares have fallen about 11 percent since Tesla announced plans to increase the number of shares in March, and were flat in trading this month.
"In a typical buy-rumor, sell-news style, investors tend to drastically reduce their buying of the splitting stock in the weeks following the effective split date, causing price momentum to slow," said an analyst at research firm Vanda Research.
Meanwhile, high-growth companies, such as Amazon and Google, have also announced share value shares this year. This highlights the need to diversify their investor base.
In August 2020, Tesla was noted to have divided the value of its shares on a basis of five for one share.
A stock split does not affect the company's fundamentals, but it can make it easier for individual investors who want to make small trades.
This new triple-for-one share means Tesla shareholders will get two additional shares for every share they own on August 17.
Tesla's stock debuted at $17 in 2010, soaring to over $1,200 following a stock split in 2020, bringing the company's market cap to over $1 trillion by the end of 2021.
But shares in the EV maker fell around 16 percent as concerns over aggressive US interest rate hikes and geopolitical uncertainty sparked a sell-off in high-growth stocks.
