Tesla's 3-for-1 stock split is now live, but investors should be focusing on the company itself
Electric vehicle powerhouse Tesla (TSLA -1.05%) is the latest in a string of high-profile technology companies to execute a stock split this year.
It means the number of Tesla shares in circulation increased threefold, which has cut the price of each share by two-thirds, from $891.30 to $297.10.
The move is designed to make Tesla stock more accessible to smaller investors, which could broaden the company's shareholder base.
It's important to remember the stock split is entirely cosmetic and that it doesn't add any value to the company itself.
Instead, investors should remain focused on Tesla's long-term potential -- especially since there's so much of it.
Tesla is the world's leading manufacturer of electric vehicles. Its success comes not only from the popularity of its cars but also the precision of its production processes
In 2017, Tesla delivered 101,312 electric cars. In 2021 that number was more than nine times higher, at 936,172
And thanks to two brand-new gigafactories in Austin, Texas, and Berlin, Germany, the company will have the capacity to manufacture 2 million cars per year by the end of 2022.