Tesla: shares dip after stock split
(CercleFinance.com) - Tesla shares dipped slightly on Monday after a 5:1 stock split aimed at making it easier for individual investors and staff to buy into the Californian electric vehicle maker.
The shares were trading at 442 dollars in early morning trading, down 0.1% from a base price of 447.7 dollars per share, which was calculated by dividing the shares' last pre-split closing price by five.
"We believe the stock split decision was a smart move by Tesla and its board given the parabolic move in shares over the past six months," analysts at Wedbush said.
With Tesla's stock split becoming effective today, the broker has adjusted its target price to 380 dollars, with a bull-case scenario of 700 dollars.
The Tesla shares has increased six-fold year to date.
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