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Tesla Inc (NASDAQ: TSLA) shareholders on Thursday approved a three-for-one stock split as the electric carmaker seeks to attract an even larger number of retail investors amid a furious rally since late May.
The split will bring Tesla’s shares down to the $300 range.
However, the Texas based-company did not specify as of when the stock split will take effect. Tesla had first announced its plan on March 28 via a tweet.
Tesla rose 0.3% in the extended trading to $928.55 as of 6:34 p.m. in New York. The stock has been on an upswing over the past month, rising 37% since the end of June as of Thursday’s close.
For Tesla, this will be the second stock split in less than two years.
The carmaker had a five-for-one stock split in 2020, prompting a 60% surge in the share price from the day of the announcement to the execution date.
Even though stock splits do not impact a company’s business model, they make the stock affordable by lowering the price of the shares.
Picture Credit: Tesla
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