In Tesla's case, a split helps the company in issuing shares to potential future employees, as part of SBC (Stock-Based Compensation). Basically, it increases the number of shares, so instead of getting 20 shares after 1 year or 3 years, you get 100 shares in the same time period.
It just sounds better.
I don't understand the excitement:
1) We're still well under $1500
2) S&P may now have a good excuse to wait until after Sep 1 to add Tesla to the S&P 500.
Everything remains the same from a dollar standpoint. This stock split and the subsequent euphoria just goes to show you how irrational the market right now is. I'm wondering if the real reason AAPL is up 15% is the 7 for 1 stock split and not the great earnings.
I definitely think a stock split will bring in more retail investors who think TSLA is too "expensive". I'm surprised they did not do a 10 to 1 though.
Tomorrow should be very interesting.