Tesla has surged 20% since it announced a stock split 2 days ago

• Tesla has rallied since announcing on Tuesday that it would enact a 5-for-1 stock split at the end of August.
• Shares of the automaker jumped 13% on Wednesday and climbed as much as 6% on Thursday.
• The stock split doesn't change anything about the company fundamentally but should appeal to smaller investors.
• Watch Tesla trade live on Markets Insider.
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Tesla has rallied as investors cheer the company's announcement that it will split its stock at the end of the month.

On Wednesday, a day after the company announced a 5-for-1 stock split, Tesla shares jumped 13%. The automaker's gains continued on Thursday, with shares rising as much as 6%, bringing the two-day total to 20%.

The stock split doesn't change anything fundamentally about the company. But a lower price per share should appeal to smaller investors who might want to own Tesla stock but can't at the roughly $1,600 share price. Tesla said the stock split was designed to "make stock ownership more accessible to employees and investors."

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At the close of trading August 28, Tesla shareholders will receive four additional shares for every share they own. The split shares will begin trading at the new price on August 31, Tesla said. That split at Wednesday's closing price would value shares at roughly $310.

Tesla stock has been on a tear this year, fueled by solid vehicle sales, blockbuster earnings, and its eligibility for inclusion in the popular S&P 500 index.

Tesla is up roughly 280% year-to-date.

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