Tesla 3 to 1 split will take place on August 25

Shareholders of the largest electric car manufacturer in the world have decided to split the deal with a 3:1 ratio.

The goal of the share split is to further attract retail investors, as well as bring the market value of Tesla's shares down to $300. Trading taking into account the company's share split will start on August 25. For the first time, the intention to split the company's shares became known from a tweet on March 28.

According to Craig Irwin, an analyst of Roth Capital Partners investment bank, the decision to split the shares was made at the right time, as "the market seems to be heading in the right direction."

Recall that this is the second split that Tesla has carried out in the past two years. The growth of the company's shares was facilitated by their division in the ratio of 5 to 1 in August 2020. Then, Tesla shares rose by 60% from the announcement to the split execution date.