Tesla has set a date for the split of shares

The manufacturer of electric cars Tesla has announced the date of the upcoming split of shares.

Last Friday, Tesla announced that each shareholder registered on August 17 will receive a dividend of 2 new shares for each one owned by him after the close of trading on August 24. The shares will be traded at the new price adjusted for fragmentation the very next day, August 25. The split of shares in the ratio of 3 to 1 is, in fact, the issue of two new shares. 

Elon Musk, the head of the company, explained this decision with the desire to support retail investors who are important to Tesla. About 46% of the company's shares available for trading belong to non-institutional investors, whereas institutional investors are mutual funds or hedge funds.

The last time Tesla split its shares was in August 2020: then the split ratio was 5 to 1. After that, the company's shares rose by 81% from the moment of the announcement to stock trading on a new basis adjusted for split.