Tesla's stock went from $2,213 a share to $457 a share after 5-for-1 stock split, and so many investors want to buy that they're crashing trading sites.
Tesla's new stock split has would-be investors extremely interested in buying the stock. They're so interested that key trading sites like Ameritrade and Robinhood are being overwhelmed. At the time of writing, Robinhood still allows trades, but is experiencing high traffic that is limiting functionality.
Tesla announced the 5-for-1 stock split earlier this month. The split awarded all existing investors a dividend of four extra stock on August 28, and the split took effect today, Monday, August 31. At the time of writing, Tesla stock sits at a stock-split adjusted value of $457 a share and has already jumped 2.86% from its initial split value.
Companies issue stock splits to make shares more accessible to investors and widen the pool of overall shares. The idea is to create more shares and lower the price-per-share value. Tesla's market cap is unaffected and currently sits at $409 billion, the eighth highest market cap on the market.