Five things you should know about Tesla's 5-for-1 stock split

Five things you should know about Tesla's 5-for-1 stock split - teslaFrom Monday 31 August le Tesla shares Inc. are traded on a fractional basis at a 5 for 1 ratio. Electric vehicle maker TSLA announced the fractionation on August 11, saying it "would make equity ownership more accessible to employees and investors." Shareholders who were already registered as of Friday, August 28, received a dividend of four additional common shares for each share then held.

A record-breaking equity rally raised market cap to $ 409 billion

Tesla stock has gained more than 400% this year, earning 33 record-breaking closes, the latest of which came on Thursday when the stock closed at $ 2.238,75 and posted an intraday record of $ 2.295,60. .

The stock was up 56% in August, which promises to be the best month since May 2013 and the third best month on record. The stock rally raised the company's market valuation to around $ 409 billion on Friday and made it the eighth largest company in the United States by market capitalization. Tesla's market valuation places it between Johnson & Johnson JNJ's Dow Jones Industrial Average and Visa Inc. V.

Wall Street remains cautious on the stock

Despite all the huge gains in the stock market, most Wall Street analysts keep a cautious view on Tesla. Of the 36 analysts covering Tesla stocks surveyed by FactSet, 19% rate the stock up and 31% rate the stock down; the remaining 50% consider it to be in the hold phase.

Tesla's stock run raised the shares of other electric vehicle manufacturers

These are good days for electric vehicle makers' actions, which several market observers attribute at least in part to Tesla's recent successes and ability to generate a fan base. Massive investment flows went to electric vehicle companies such as Nikola Corp. NKLA or China's Nio Inc. NIO, Li Auto Inc. LI and X Peng Inc. XPEV.

Wall Street expects Tesla to be included in the S&P 500

Tesla is expected to join the S&P 500 SPX index in the coming months. The company removed a major barrier to index inclusion when it reported its fourth consecutive quarterly GAAP profit in late July. Joining a major stock market index would automatically bring Tesla shares into the portfolios of thousands of mutual funds.

What else changes from Monday?

From Monday, there will be notable changes to the DJIA Dow Jones Industrial Average, due to splits by Apple and Tesla. ExxonMobil Corp. XOM, a Dow component since 1928, will be replaced in the index by Inc. CRM. Pfizer Inc. PFE and Raytheon Technologies Corp. RTX are also out, replaced by Biotech Amgen Inc. AMGN and industrial conglomerate Honeywell International Inc. HON.