Tesla shares are much, much cheaper Monday after the stock’s 5-1 split.
Even though Tesla’s stock closed 12.5% higher at $498.32 a share Monday, that’s still around $1,800 cheaper than where it was trading on Friday. The company announced the stock split earlier this month, making shares more affordable for average investors.
The split will not change the value of investors’ total holdings of the company. It will just grow the number of shares making up their portfolios. Tesla (TSLA) stockholders are getting four shares for each share they held last week.
Tesla continues to be a big target of short sellers – investors who borrow the stock and sell it with the hopes of eventually buying it back at a lower price.
Elon Musk, Tesla’s CEO, likes to point out (correctly, so far) that analysts have been consistently wrong and that Wall Street keeps raising its earnings forecasts and price targets on the stock.
Tesla may also get a further boost if it is finally added to the blue-chip S&P 500 index (INX) – a move that could soon happen now that the company has posted a consistent run of profitable quarters.
Apple (AAPL) also started trading Monday after its stock split with shares now about $400 cheaper after its 4-1 split. Apple (AAPL) stock is now trading at $129.04 per share, after gaining 3.4% Monday. That’s compared to about $500 last week.
–CNN Business’ Paul R. La Monica and David Goldman contributed to this report.