D.American electric car maker Tesla has announced a stock split to make its shares cheaper for small investors. Tech billionaire Elon Musk’s company said its board of directors will approve a 3-for-1 split if approved by shareholders at its annual meeting in August. Tesla had already announced in March that it was planning a split. Until now it was not clear in what relationship.
Stock splits do not change a company’s stock market value, but they lower the price per share. Stocks can thus become more attractive, especially for small investors, even though many brokers already offer to buy shares in proportion.
However, the measure is highly regarded by companies: other large American companies such as Google’s parent company, Alphabet and Amazon, have already announced the stock split this year.
Tesla shares have been under pressure recently during the general downturn in the stock markets. The price has dropped more than 40 percent from last November’s highs. The stock closed at $ 696.69 on Friday. The announcement of the stock split initially caused slight price increases after the trading session. Tesla also announced in the announcement that Oracle founder Larry Ellison wanted to step down from the board of directors.