5:1 Tesla stock split

[ajdelange]

You have to be owning the stock by 8/21 to be eligible for the split on 8/31. So you if you "want in" on the 5 to 1 split, you have to buy it before EOTD tomorrow, 4 PM EST.

That depends on how you define "being in". If you want to experience seeing your account showing 1 share of Tesla stock tomorrow morning and 5 shares of stock on Monday morning then you will have to buy 1 share tomorrow for $2001 - no, that is not a typo. OTOH you can wait until Monday and buy 5 shares at $400.20 shares apiece also shelling out $2001. Result by Monday evening is the same either way: 5 shares of stock valued at $2001 total (assuming the madness does not continue Monday);

 

[Daweism]

So what happens to people who buy next week during the limbo week?

 

[Jhodgesatmb]

You have to be owning the stock by 8/21 to be eligible for the split on 8/31. So you if you "want in" on the 5 to 1 split, you have to buy it before EOTD tomorrow, 4 PM EST.

https://www.forbes.com/sites/peterc...la-stock-on-5-for-1-stock-split/#68a0099c24e1

Tesla’s stock split — done to make its stock “more accessible to employees and investors,” according to Reuters — will add four new shares to each share of the stock held by investors. To qualify for the split, investors must own shares in Tesla by August 21st.

It is not the end of the world if you don't get in. Some stocks lose value immediately after a split so you can actually get it at a lower price. Historically, around 80%+ go lower in price after the split. But the sentiment on the street is that Tesla is in the other 20%.

I do not see the point in buying before the split just to get ‘in’ on the split. If you have 6 shares today at value $12K (or $12K/6 = $2K per share), then next Friday you will have 6*5 = 30 shares at value $12K/30 = $400 per share * 30 shares = $12K, at least until the market opens for trading. If 80% go lower then you are buying high now and losing value. If 20% go higher then you can buy at the $400 per share price and gain value but you can buy more shares because the price is lower. Am I missing something?

 

[DIYDharma]

I do not see the point in buying before the split just to get ‘in’ on the split. If you have 6 shares today at value $12K (or $12K/6 = $2K per share), then next Friday you will have 6*5 = 30 shares at value $12K/30 = $400 per share * 30 shares = $12K, at least until the market opens for trading. If 80% go lower then you are buying high now and losing value. If 20% go higher then you can buy at the $400 per share price and gain value but you can buy more shares because the price is lower. Am I missing something?

No - you are not missing anything and you are correct, you can get them on the 31st as well. That makes sense too.

 

[Youaregoldone]

You have to be owning the stock by 8/21 to be eligible for the split on 8/31. So you if you "want in" on the 5 to 1 split, you have to buy it before EOTD tomorrow, 4 PM EST.

https://www.forbes.com/sites/peterc...la-stock-on-5-for-1-stock-split/#68a0099c24e1

Tesla’s stock split — done to make its stock “more accessible to employees and investors,” according to Reuters — will add four new shares to each share of the stock held by investors. To qualify for the split, investors must own shares in Tesla by August 21st.

It is not the end of the world if you don't get in. Some stocks lose value immediately after a split so you can actually get it at a lower price. Historically, around 80%+ go lower in price after the split. But the sentiment on the street is that Tesla is in the other 20%.

SURE THING...Just as Statistically the Stock price was supposed to drop after the initial Split Hype, which definitely DID ANYTHING BUT. Everyone knows by now that Tesla was, and still is, under valued. I personally foreseen exponential growth for the company, which reflects its Founder Genius.

 

[ajdelange]

I personally foreseen exponential growth for the company, which reflects its Founder Genius.

I wish people would not misuse that term. Here's an example of exponetial growth: Stock price today $2000; one year from now $2004; two years from now $2006.01.

Here is another: today $2000, 1 week from now $1809.67, 2 weeks from now $1637.46.

 

[Jhodgesatmb]

I wish people would not misuse that term. Here's an example of exponetial growth: Stock price today $2000; one year from now $2004; two years from now $2006.01.

Here is another: today $2000, 1 week from now $1809.67, 2 weeks from now $1637.46.

The common use of the term is for the steep part of the exponential curve and positive unless otherwise noted, but you know that...so I think you have your ‘nit’ basket out.

 

[ajdelange]

Actually it's my pet peeve basket. I guess it's also acceptable to say "I seen.." when you mean "I see" or "I saw" but this only makes the language less precise and leads to misunderstanding.

 

[Jhodgesatmb]

Actually it's my pet peeve basket. I guess it's also acceptable to say "I seen.." when you mean "I see" or "I saw" but this only makes the language less precise and leads to misunderstanding.

My list of pet peeves would fill an ark.

 

[Akgolf]

This morning I looked at my Fidelity account. They’ve split my Tesla stock, so now I have 655 shares. They’ve left the price the same, it hasn’t been reduced.

So at least for a day, my IRA looks great!

 

[ajdelange]

That's serious money. If I had serious money in Tesla stock I wouldn't sleep at night!

 

[Dids]

Why would I want to own Tesla? Once I have cybertruck I will be so gone. Money is for buying stuff and if you already have everything you want what's the point of more?

 

[Crissa]

Money also buys food and electricity.

-Crissa

 

[TyPope]

Why would I want to own Tesla? Once I have cybertruck I will be so gone. Money is for buying stuff and if you already have everything you want what's the point of more?

Well, if you bought Tesla stock, you may earn enough on it to get your Cybertruck without having to put out any more money... Or, since you already have all the money you'll need, you could donate to some charity or research effort...

 

[Dids]

Well, if you bought Tesla stock, you may earn enough on it to get your Cybertruck without having to put out any more money... Or, since you already have all the money you'll need, you could donate to some charity or research effort...

If you donate to charity they all start calling.... Don't do it!?