On Thursday, the stock prices of US EV firm, Tesla, surpassed the $2000 mark as investors can’t get enough of the share split news from the famous CEO, Elon Musk. The Tesla’s shares are scheduled to split in the 5-for-1 ratio on 31st August 2020.
The carmaker’s share prices surged 6.6%, reaching $2001.83 on Thursday closing. The increase in stock prices aided Tesla to attain a market value of more than $373 billion, which makes it the most valuable of all but seven S&P 500 companies.
The electric vehicle firm’s share prices have risen more than 300% since the start of the year and 45% since 11th August, when the Elon Musk announced a 5-for-1 share split to make it affordable for investors, employees, and more people. Each shareholder will get four additional shares for each share of Tesla, to be distributed on the closing trading session of 28th August 2020. The massive surge was primarily led by investors betting on Tesla to be an S&P 500 company after it announced a robust quarterly report last month.
However, with brokerage firms like Robinhood and few others, which aid users buy fractions of shares, the features like stock split lost its significance, thus, surprising many investors after the record-breaking rally of Tesla shares. The Paul-Alto, California firm’s shares are currently priced 148 times higher than the expected earnings, but the valuation will not be much affected after the split session, said Refinitiv.
The US automaker will roll out its Model Y, the “Made in China” vehicle, at its manufacturing hub in Shangai in 2021. Moreover, investors’ forecast the company to make an important announcement as Tesla holds it Battery Day, the long-awaited day, on 22nd September, which is the same day for the annual shareholder’s meeting. Analysts’ at Morgan Stanley predicts the company to report an innovation in batteries, supplying superior packs to the automotive industry than today.