Will Tesla Finally Do a Stock Split Now?
Stock market investors have rarely seen the kind of performance that Tesla (NASDAQ: TSLA) put up over the past week, with its stock soaring to as much as $969 per share. Even after pulling back by the weekend, the electric vehicle pioneer's stock has doubled just since early December, and many analysts believe that Tesla could have much further to run.
A question that more and more Tesla shareholders are asking is whether the company will finally do a stock split. Even though splitting the stock does nothing to increase the intrinsic value of a business, many market watchers see stock splits as a sign that company management is confident about a stock's future prospects.
CEO Elon Musk has been nothing but optimistic about Tesla's future, and the stock now trades at a price 44 times higher than the $17 per share that investors in its 2010 initial public offering paid. Having flirted with the $1,000 per share mark, Tesla stock could be ripe for a stock split -- and that could spur even more enthusiasm from current and would-be shareholders.
Source Fool.com
