Illustration by Alex Castro / The Verge
Tesla has announced a new five-way stock split to take effect on August 28th, which will make the company’s shares cheaper for buyers.
The electric car maker’s stock closed on Tuesday at $1,374.39 a share, close to its July all-time high and at a total market valuation of more than $256 billion. But at prices that high, it’s difficult for individuals — especially retail traders using platforms like Robinhood — to own more than fractional shares of the company.
If you own Tesla stock by August 21st, you’ll receive four additional shares of common stock on the date of the split. Starting August 31st, Tesla says it will begin trading on a split-adjusted basis.
Stock splits are typically…