As the world’s most valuable automaker Tesla heads into its stock split, the company’s shares are slightly dipping on the debut.
Tesla’s 3-for-1 stock split kicked in on Thursday, and the automaker’s shares opened at $302 before dipping back to $293 in early trading hours, as reported by Reuters.
The split is Tesla’s second in two years, pulling from the playbooks of Amazon.com and Google parent company Alphabet.
B. Riley Head Market Strategist, Art Hogan, said that stock splits “certainly have a higher appeal to retail investors, and makes their options more affordable as well.” Hogan continued, “Retail investors are a very important cohort for Tesla, and today’s stock split is essentially an acknowledgment of that fact.”
Tesla Has Produced 3 Million Cars; 3-for-1 Stock Split Approved https://t.co/p7X6epyOEv
— TeslaNorth.com (@RealTeslaNorth) August 4, 2022
Retail investors remain one of Tesla’s most important investing demographics, and the split is likely to help these investors stay in the game.
Tesla debuted in the stock market in 2010 at $17 per share. At their peak, Tesla’s shares shot past $2,000 which made the automaker one of the highest-priced stocks on Wall Street. Additionally, this meant it was challenging for small investors and retail investors to go in on the stock.
At the time of writing in late trading hours on Thursday, Tesla’s shares were trading at $293.38 (-$3.27), down 1.25 percent from market open of $302.36.
Numerous analysts have ‘buy’ ratings on Tesla after the stock split, and historically prices have jumped after splits have occured.
$TSLA Price Targets by price (after split) pic.twitter.com/B4N4WrRYhq
— Nitzao (@Nitzao) August 25, 2022
