Tesla, Apple stock splits propel shares to record highs
Both stocks split their shares on Monday
New Street Research managing partner Pierre Ferragu discusses his outlook for Tesla shares.
Red-hot Tesla Inc. and Apple Inc. shares rallied to record highs Monday as investors scooped them up at greatly reduced prices following their stock splits.
Apple shares, which split 4-for-1, climbed as much as 4.2% to $130.05. The split was the fifth since Apple became a publicly traded company in 1980.
Tesla’s stock, meanwhile, rallied as much as 12% in the first trading day after the 5-for-1 stock split, its first in the more than 10 years since its June 2010 initial public offering.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 229.81 | +1.68 | +0.74% |
| AAPL | APPLE INC. | 222.77 | +0.11 | +0.05% |
Shares of both companies, which have had banner years, were off their best levels of the session.
Tesla’s share price had surged 435% this year through Friday, fueled by strong quarterly results amid the COVID-19 pandemic.
The Palo Alto-based electric-car maker in the three months through June completed its fourth straight quarter of profitability, clearing the final necessary hurdle for entry into the S&P 500 amid increasing enthusiasm about its business in China and the upcoming Battery Day event.
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Meanwhile, shares of Cupertino-Calif.-based iPhone maker Apple were up 70% year-to-date through Friday. Apple earlier this month became the first U.S. company to reach a $2 trillion market capitalization after reporting strong results in the April through June period.