Down 42% From Its High, Could Tesla Stock Rebound After Its Stock Split?
Tesla (NASDAQ: TSLA) is planning a 3-for-1 stock split, according to a recent filing with the Securities and Exchange Commission (SEC). Of course, the company still needs to obtain the approval of shareholders -- the measure will be put to a vote at the annual meeting on Aug. 4 -- but many investors are already excited about the implications.
While stock splits have no direct impact on business performance, they do reduce the price of each share, which makes the stock more accessible to retail investors. That occasionally translates into price appreciation, simply because new investors start buying. And with Tesla down 42% from its high, a post-split rebound probably sounds pretty good to shareholders.
Unfortunately, stock splits don't always trigger price appreciation, and there are several other variables at play.
Source Fool.com
