The success of apple and Teslas stock splits may prompt CEOs of other companies with higher stock prices to consider splitting their own shares.
Tesla shares have soared more than 70 per cent since the announcement of the spin off plan on August 11. Apples share price has risen more than 30% since the company announced its split on July 30.
On Friday, Teslas shares traded at more than $2000 before the spin off, making it one of the most expensive stocks on Wall Street. Other companies with higher stock prices include Amazon, which shares more than $3400; alphabet, the parent company of Google, with a share price of more than $1600; and chipotle Mexican Grill, with a share price of more than $1300.
Apples last spin off was in 2014, with a 7-to-1 split. This month is the fifth spin off since Apple went public in 1980.
Apples market value soared to more than $2 trillion, surpassing Saudi Aramco and becoming the worlds highest market value listed company. Teslas shares are up nearly 500% this year; by contrast, shares of General Motors and Ford Motor Co. have fallen because of the epidemic. (Chen Chen)