Tesla shares jump 12% on first day of post-split trading

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Tesla shares jump 12% on first day of post-split trading
Elon Musk.Aly Song/Reuters
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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.

Read more: 35-year market vet David Rosenberg warns the stock market's rally features distortions that were glaring during the tech bubble — and lays out his plausible scenario for a crash

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.

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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.

Tesla shares jump 12% on first day of post-split trading
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