Tesla Stock Split Plan Sends TSLA Price Up By About 7% At Mid-Day

A stock plan by Tesla to increase the amount of stock offered has created a surge in the value of its stock (Mid-Day Report).

Tesla will present a stock split plan to investors at its next annual general meeting. The plan was announced formally by Tesla on its company’s Twitter account at 6:00 am Monday, March 28th (this morning).

You can read Tesla’s securities and exchange commission 8-K filing related to this stock split here.

This is not the company’s first stock split plan. In August 2020, Tesla, Inc. executed a 5:1 stock split. Investors have reacted positively to this newest announcement.

On January 1st, 2022, Tesla, Inc. had about 1 billion shares of stock outstanding according to Marketwatch.

At approximately noon today, about halfway through the trading day, Tesla’s stock value had increased in value. At 12:35 it was priced at $1,078 an increase in value for the day of just under 7%. The high point for Tesla’s stock value was $1,222 on November 5th, 2021. On March 11th, 2022 it was a temporary low of about $795 per share and has had a positive run since that recent point.

The Street quoted David Trainer, CEO of New Constructs, as saying, "A Tesla stock split would dramatically reduce the price of Tesla's stock, which would make it even more attractive to unsuspecting retail investors," he added. "This could further fuel the bubble in Tesla's stock that has been brewing over the past two years."

How do you think this proposal will sit with investors as October approaches? Tell us your thoughts in the comments below.

Author Note: John Goreham does not buy and sell any individual stocks, nor does he offer investment advice of any kind.

Image of Tesla retail space by John Goreham

John Goreham is a long-time New England Motor Press Association member and recovering engineer. John's interest in EVs goes back to 1990 when he designed the thermal control system for an EV battery as part of an academic team. After earning his mechanical engineering degree, John completed a marketing program at Northeastern University and worked with automotive component manufacturers, in the semiconductor industry, and in biotech. In addition to Torque News, John's work has appeared in print in dozens of American news outlets and he provides reviews to many vehicle shopping sites. You can follow John on TikTok @ToknCars, on Twitter, and view his credentials at Linkedin

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