By Claudia Assis, MarketWatch
Tesla Inc.shares will start trading Monday after a 5-for-1 stock split.
The electric-vehicle maker /zigman2/quotes/203558040/composite TSLA +2.95% announced the split on Aug. 11, saying it would “make stock ownership more accessible to employees and investors.”
Shareholders of record as of last Friday will receive a dividend of four additional shares of common stock for each then-held share; these new shares were formally distributed after the closing bell Friday.
Here are five things to know about the Silicon Valley car company ahead of the split.
A record stock run has boosted market cap to $409 billion
Tesla shares have gained more than 400% this year, hitting 33 record closes in the process. The stock reached the latest on Thursday, when it closed at $2,238.75 and notched an intraday record of $2,295.60.
The stock is up 56% in August, which is shaping up to be its best month since May 2013 and its third best month on record.
The stock rally has boosted the company’s market valuation to around $409 billion on Friday, and made it the eighth biggest company in the U.S. by market cap. Tesla’s market valuation places it between Dow Jones Industrial Average components Johnson & Johnson’s /zigman2/quotes/201724570/composite JNJ +1.28% and Visa Inc. /zigman2/quotes/203660239/composite V -0.48% . The latest string of records for Tesla came ahead of the stock split as well as a “battery day” that Tesla has set for Sept. 22. Wall Street views the event, a showcase of Tesla’s battery technology, as another potential catalyst for the stock.
Wall Street remains cautious on the stock, for the most part
For all the heady stock-market gains, most Wall Street analysts maintain a cautious view of Tesla.
Of the 36 analysts covering Tesla’s stock and surveyed by FactSet, 19% rate the stock a buy, and 31% rate the stock a sell; the other 50% rate it a hold.
The average share-price target on Tesla is $1,288.87, or around 42% below its latest pre-split level.