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Apple and Tesla show gains, after pre-announced stock split takes effect

FILE - In this Tuesday, June 16, 2020 file photo, the sun is reflected on Apple's Fifth Avenue store in New York. A European Union high court on Wednesday, July 15, 2020 ruled in favor of technology giant Apple and Ireland in its dispute with the EU over 13 billion euros, 15 billion US dollars in back taxes. (AP Photo/Mark Lennihan, File)

NEW YORK (NewsNation) — Both Apple and Tesla followed through with previously announced stock splits on Monday, making the shares more accessible for investors.

When the price of a share is too high, splitting stocks is a way for companies to make it less expensive to buy individual shares.


Apple’s previous stock split was 7-for-1 in 2014 and its fifth since going public in 1980.

Shares of the Cupertino-California-based company, which have rallied nearly 30% since it announced its 4-for-1 stock split and blockbuster quarterly results on July 30, rose 2.6% to $127.99 on Monday.

The rally helped the iPhone maker become the first publicly listed U.S. company to breach $2 trillion in market capitalization.

Apple shares closed at $499.23 before the split on Friday, up 70% this year.

Tesla followed suit earlier this month by announcing a 5-for-1 split to portion its richly valued stock into smaller chunks, which surged more than five-fold this year.

Shares of Tesla, up 61% since it announced its first-ever stock split in mid-August, closed at $2,213.40 on Friday. They rose 3.2% at $456.90 in early trading on Monday.