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Tesla has surged 18% since it announced a stock split 2 days ago (TSLA)

Reuters

  • Tesla has rallied since the company announced on Tuesday that it will enact a five-for-one stock split on its shares at the end of August. 
  • Shares of the automaker jumped 13% on Wednesday, and climbed as much as 4% 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.
  • Read more on Business Insider.

Tesla continues to rally as investors cheer the company's announcement that it will split its stock at the end of the month. 

Shares of Tesla jumped 13% on Wednesday after the company announced its five-for-one stock split on Tuesday. On Thursday, the automaker's gains continued with shares rising as much as 4%, bringing the two-day total to 18%. 

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

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. As of Wednesday's close, the split would value shares at roughly $310. 

Tesla stock has been on a tear this year, fueled by solid vehicle sales, blockbuster earnings, and potential that it could be included in the popular S&P 500 index.

Tesla is up more than 280% year-to-date.

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