Tesla stock split

📊 Investing
61

Guys and girls I need a favour. Could someone explain to me if it is better to buy stock in pre of after split? I am referring to both Tesla and Apple here. I own fractions of Apple and want to top up but would love to get in Tesla. Has anyone been in this situation before in the past or could they refer me to a book/article/source to read more about it ?

2 Likes
62

Thanks, but I meant is there an explanation outside of this community forum?
Like an RNS?
Or even simply an article from a reputable newspaper?
I haven’t seen the word dividend mentioned anywhere in the articles that I have read, but I haven´t read the RNS (equivalent).

63

image
image828×1792 279 KB

That was Tesla’s official statement

1 Like
64

The use of the term ‘dividend’ is used in the official statement, found https://ir.tesla.com/news-releases/news-release-details/tesla-announces-five-one-stock-split

It could be a misunderstanding on my part, but I am not sure of how the terminology will be treated for tax purposes.

65

surely it just wouldn’t be like a normal dividend or the current shareholder would lose out as tax needs to be paid on it right. why don’t they just do a normal stock split like everyone else, mentioning the word dividend in their statement is messing with my brain.

1 Like
66

Thank you, I had not seen the official announcement :slight_smile:

67

now you can be confused along with everyone else :slight_smile:

68

23 posts were split to a new topic: Tesla Off Topic Rant

70

So is it a split or is it a dividend?

71

I have no idea, makes no sense to me either. But wouldn’t be a cash dividend, since it will be shares, so I doubt it will be taxed.

72

True, but is it splitting or are they just going “hey, here’s 4x your money invested as stock dividend” cause if true… Bless Elon.

Edit: yes that will never happen. But is it a split or is it a dividend?

73

PALO ALTO, Calif., August 11, 2020 – Tesla, Inc. (“Tesla”) announced today that the Board of Directors has approved and declared a five-for-one split of Tesla’s common stock in the form of a stock dividend to make stock ownership more accessible to employees and investors. Each stockholder of record on August 21, 2020 will receive a dividend of four additional shares of common stock for each then-held share, to be distributed after close of trading on August 28, 2020. Trading will begin on a stock split-adjusted basis on August 31, 2020.

74

ok I think I understand it now. 2 types of dividends, cash and stock. this one is a stock dividend, they are not taxed until sold by the owner. google is great.

1 Like
75

It may depend on the country…

76

So it’s a 5:1 split and then a dividend of 4 shares per share held? How generous Elon!

I’m still kidding and don’t understand what is going on.

77

you will get 4 additional shares. Its simple as that.

78

yup, instead of 1 x 1500, you’ll then have 5 x 300. that’s it I think.

1 Like
79

We’ll treat it like a regular 5-for-1 stock split.

3 Likes
80

I bet brokers love these splits. all the work to divide things up and make it work right for everyone and they get nothing out of it. thanks elon and apple. who’s next? lol

82

Especially brokers with fractional shares lol, doesn’t make a difference at all

1 Like