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7% Rally on Wednesday
Shares in the US alternative energy firm Tesla is trading over 13% higher pre-market on Thursday following an impressive 7% rally yesterday. The moves have come in response to news of a Tesla stock-split. This is essentially where a company divides the number of existing shares in the company into new, multiple shares. This, in turn, creates a lower entry price for new buyers.
The split has created a wave of fresh demand for Tesla shares which were already in high demand following a bumper Q2 earnings report. Tesla reported its fourth consecutive quarter of growth, despite the global pandemic, and posted a large earnings and revenues beat.
Following the stock-split, where pre-existing shares were split in five, shares in Tesla will now cost around $275 to buy. The wealth of new shares, at a heavily reduced price, has already seen a flood of demand. The 7% rise in value yesterday alone, has brought the company’s valuation up to roughly $272 billion.
Bumper Growth i...
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