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The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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Tesla stocks soar higher as they attempt a stock split

Tesla stock (NASDAQ:TSLA) has witnessed a rapid price increase this week with over a 7% increment so far amidst the recent proposal from the company to pursue a stock split.

On Monday, the company announced that they approved an increase in the number of authorized shares to enable a split in the form of a stock dividend.

Tesla’s decision to split the stock marks its second stock split in less than two years. Tesla is currently seeking to obtain investors' approval to carry on with the process. The last stock split carried out by Tesla was in August 2020 at a 5-for-1 ratio. This brought about a significant increase in price value since then. Thus the stock has doubled after the split with over a 130% addition.

The final decision to split its stock was after the company suspended its Shanghai factory amid COVID-19- warranted lockdown. While the stock dividend will be contingent on final board approval, the company will seek shareholders' final consent to effect the increase in its authorized share capital at its upcoming annual general meeting next month.

Tesla management revealed in a tweet that its board has approved the proposal but that the dividend is contingent on final board approval by shareholders during the forthcoming annual shareholders meeting. The Tesla stock is currently trading at $1,099.64, giving the company a total market cap of over $1.2 trillion.

Tesla's equity base comprises 1.03 billion shares available on the market. Its shares have been up to over 70% since last year. Splitting a stock has a significant advantage of making it more accessible in bits to large retail investors, thereby increasing the number of shareholders and market cap invested into the project. Hence, many would consider it an excellent opportunity to invest in Tesla stock as more gains are expected from the split.

Last Updated: 31/03/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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