Tesla’s stock market value increased by roughly $84 billion on Monday, more than Ford Motor Company’s whole market capitalization, after the electric vehicle maker announced plans for a second stock split in about two years.
Stocks splits for large companies have returned to the spotlight recently with Amazoncom saying earlier this month that it will do a 20-for-1 stock split, followed by Alphabet’s own plan announced in February, as these companies try to make their lofty stocks more attractive for individual investors.
The revelation, which was publicised via a tweet, helped to drive Tesla’s recent stock rise. This year, the company has been the largest gainer on the NYSE FANG+ Index. The stock rose 8% to $1,091.84 on Monday, reaching its highest level since January 12.Its stock price soared by 743 percent that year, and the split was frequently regarded as one of the factors driving the gains.
Stock splits can generate large rallies as retail traders pile in, as evidenced by recent proposals from Alphabet, Amazon, and Tesla. Day traders are flocking to these companies as a result of the splits, propelling stock surges.
According to data from Fidelity, Tesla was by far the most popular stock among its users on Monday. According to Vanda Research, Amazon’s announcement drew “substantial” retail attention and was likely the greatest contributor in the stock’s outperformance during a week when the Nasdaq 100 plummeted nearly 4%.