Tesla announces a 5 for 1 stock split
Electric vehicle maker Tesla announced a five for one stock split which will go into effect on 31 August. While the stock split does not change anything fundamental about the stock, its shares were up more than 6% in the post-market trading session.
Did you know you can speculate on the price of Tesla shares using Contracts for Difference (CFDs)? This allows you to potentially profit from both rising and falling markets. Get started with a free demo trading account today!
The stock split does mean that more smaller investors may be able to afford the stock after 31 August. While Tesla's shareholders consist primarily of larger institutions, the recent stock market rally higher has involved a higher amount of smaller investors who opened accounts during the lockdown period.
Tesla's share price has been on a meteoric rise higher and has already tripled this year. In its most recent earnings reported Tesla reported its fourth straight quarter of profits, making it eligible to join the S&P 500. This means the stock may become more attractive to large mutual funds who track the stocks within the S&P 500 index.
How to trade Tesla shares with Admiral Markets UK Ltd
If you are feeling bullish or bearish on Tesla's share price you can speculate on its price direction using CFDs. To get started, follow these five simple steps:
- Log in to your existing Admiral Markets trading account, or open a live or demo trading account in just a few minutes.
- Click Trade on your chosen account which will direct you to the Admiral Markets MetaTrader Web Platform.
- Type in Tesla at the bottom of the Market Watch search box and then drag the symbol onto the chart.
- Use the one-click trading feature on the chart or right-click on select Trading -> New Order.
- Choose your entry, stop loss and target levels and position size (volume) and then confirm the trade.
Source: Admiral Markets MetaTrader 5 Web, #TSLA, Weekly - Data range: December 22, 2013 to August 22, 2020. Please note: Past performance is not a reliable indicator of future results.
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