Here's How Much You'd Have Today If You Had Invested $10,000 in Tesla the Day Before It Completed Its Last 3-for-1 Stock Split.
Tesla has been a disappointment since its stock split.
Overview
When a big-name stock executes a stock split, it gets a lot of attention. That's because stock splits are considered bullish indicators -- the company is splitting its stock to make it more affordable to retail investors. It also provides the company with greater flexibility in offering compensation packages that include stock equity for its employees. It's a win-win, generally.
That's why the 3-for-1 stock split that Tesla (NASDAQ: TSLA) announced in August 2022 got so much attention. Tesla was a high-flying stock, gaining 2,000% in the three years immediately before the split. Had you invested $10,000 into Tesla in August 2019, you would have had $210,000 the day of the split.
Details
But against those lofty expectations, Tesla stock has been a disappointment since the split. It's gained only 28% since executing the split on Aug. 25, 2022, meaning that had you invested $10,000 in Tesla the day before the split, you'd only have $12,800. Meanwhile, the S&P 500 (SNPINDEX: ^GSPC) gained 77% over the same period, and a $10,000 investment in an S&P 500 index fund, such as the Vanguard 500 Index Fund ETF (NYSEMKT: VOO), would have grown to nearly $17,800.
Source
Originally published at www.fool.com.