Now it looks like Tesla is about to benefit from the same phenomenon. Shares of the company jumped 6% to $ 1,459 in extended trading after news of the split broke.
The stock has risen 8,500% since its IPO
This is the first time Tesla has split its shares since the Palo Alto, Calif., Company went public at $ 17 a share ten years ago. Any investor who bought $ 10,000 worth of shares at this IPO price and would now own shares worth approximately $ 860,000.
Tesla shares have already tripled so far this year to give the automaker a market value of $ 256 billion – nearly three times the combined value of longtime rivals Ford Motor, General Motors and Fiat Chrysler.
The rapid ramp-up of Tesla’s inventory has been propelled by a growing belief that the company has solved its past manufacturing issues. It is also seen as a desire to broaden the appeal of its vehicles beyond the luxury niche with a series of new models.
Tesla was also able to reverse a long history of losses under the leadership of its eccentric CEO and co-founder, Elon Musk, to record four straight quarters of profit.
The company’s financial turnaround has qualified Musk for two lucrative awards valued at nearly $ 3 billion since May.