Tesla stock has been on an upwards trend after the Silicon Valley car maker’s board approved a five-for-one split of the company’s stock. The stock surged more than 6% today as the rally continued.
Each shareholder of record as of Aug. 21 will receive a dividend of four additional shares of common stock for each then-held share, to be distributed after the close on Aug. 28, Tesla said.
The split will allow a wider range of investors take part in the company “is increasingly influenced by individual investors, including those looking to gain exposure to next-generation transportation trends,” Baird analyst Ben Kallo wrote in a note Wednesday.
Options of the stock have also made many investors hundreds of dollars as they continue to double day after day with $2,000 ITM calls expiring this August 21 at a premium of $28.88.
Besides Tesla’s profitability, several analysts have praised Tesla’s cash reserves, the continued strong demand for its electric vehicles, its new factories being built in Texas and in Germany, and a “battery day” scheduled for Sept. 22 as well as the expected launch of the Cybertruck, its electric pickup.