Tesla Stock Split 2023
When investors make investment decisions, they consider the history of a company’s stock splits, including the number of times the stock has split in the past and the ratios used for the splits. However, a stock split doesn’t alter anything fundamentally about the company itself. Instead, it makes the stock more affordable and attractive to investors, potentially leading to higher demand and an increased stock price.
Currently, Tesla is one of the world’s most valuable companies, with a market capitalization of $848.82 billion. Since its Nasdaq listing in 2010, Tesla’s stock (TSLA) has undergone two stock splits. Let’s look at the history of the stock splits in-depth and then try to guess when will be the next stock split.
Tesla Stock Split: History of Stock Split For Tesla
A stock split occurs when a company increases the number of its shares by dividing each existing share into multiple new shares. This move aims to enhance the stock’s liquidity and appeal to individual investors by reducing the price of each share proportionally.
Tesla’s stock (TSLA) has experienced two stock splits since its listing on Nasdaq in 2010.
| Date of the Split | Split | Cumulative Split |
| August 31, 2020 | 5 – to – 1 | 5 – to – 1 |
| August 25, 2022 | 3 – to – 1 | 15 – to – 1 |
In a 3-to-1 stock split, each existing share of the company’s stock is divided into three new shares. As a result, shareholders will have three times the number of shares they had before the split, but the price per share will be reduced to one-third of its original value.
During this 3-for-1 stock split, the value of each Tesla share decreased from around $900 before the split to $300 after the split.
Tesla Stock Split: Will Tesla split its stock?
Over its 14 years as a publicly traded company, Tesla has undergone two stock splits, with the most recent one being a 3-for-1 split in August 2022. The stock traded at approximately $2,250 per share before the 5-for-1 split in 2020 and around $900 per share before the 3-for-1 split in 2022.
Currently, there have been no recent public statements from Elon Musk regarding the possibility of another stock split. Considering the current price of Tesla around $260, Tesla may consider another stock split in the future if its stock price rises significantly, making it less affordable for individual investors. However, there is no definite way to predict if or when Tesla will choose to do so.
Tesla Stock Split: Will Tesla Split in 2023?
As of now, there have been no announcements from the company, and there is no high buzz among the people regarding any potential stock split. However, considering the previous two splits, which occurred when the share price was at a high level, and with the current share price hovering around $260, Tesla might consider another stock split only if there is a significant surge in the share price once again.
Note: Please consult a registered investment advisor to guide you on your financial decisions.