Tesla shares jump 12% on first day of post-split trading
- Tesla stock jumped as much as 12% in its first day of post-split trading on Monday.
- The electric vehicle maker announced August 11 that it would enact a 5-for-1 stock split, and started trading at the new price Monday.
- Still, the automaker's rally hasn't slowed down. Shares are up more than 470% this year.
- Watch Tesla trade live on Markets Insider.
- Read more on Business Insider.
Tesla surged as much as 12% on Monday to $497 per share in the company's first day of post-stock-split trading, extending the automaker's blistering rally.
The company announced on August 11 that it would enact a 5-for-1 stock split after its recent rally pushed shares above $2,000 a piece. Since the announcement, Tesla shares have added more than 70%, even though a stock split changes nothing about a company's underlying fundamentals.
Still, the split may encourage more small investors who couldn't afford the stock's pre-split price.
"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," wrote Wedbush analyst Daniel Ives in a Monday note. He adjusted his price target on Tesla shares to $380 with a bull case of $700 and reaffirmed his neutral rating following the split.
Also on Monday, Apple shares gained after its own 4-for-1 stock split went into effect. It's the company's fifth stock split ever.
Tesla has gained more than 472% year-to-date.
