This article was first published on Orbex Forex Trading Blog.
- -
This content is synced from the rightful owners. Copyright on text and images belong to the original source.
- -

tesla stocks

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...


--
To keep reading this article, please navigate to: Orbex Forex Trading Blog.