![Tesla shares shoot up after announcement of five-for-one stock split Tesla shares shoot up after announcement of five-for-one stock split](https://morningtopnews.com/wp-content/uploads/2020/08/200706115222-08-elon-musk-0309-restricted-super-tease-768x432.jpg)
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Tesla (TSLA) noted in a statement that the split is intended to “make stock ownership more accessible to employees and investors.”
A stock split creates more shares of a company without changing the underlying dollar value of any single investor’s holdings. By increasing the number of shares available, the company can attract new investors who might otherwise be put off by the high price of a single share.
Tesla’s stock is on a roll this year, despite challenges presented by the coronavirus pandemic. Shares have risen more than 200% since January to $1,374, and its market capitalization has surpassed the likes of Disney (DIS), Toyota (TM) and Coca Cola (KO).
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