(CNN Business) — Tesla shares are much, much cheaper this Monday after the company’s 5-1 split (a trade known as split).
Even though Tesla shares closed up 12.5% at a cost of $ 498.32 per unit on Monday, they are still about $ 1,800 cheaper than Friday’s price. The company announced the stock split earlier this month, which makes the stock more affordable for average investors.
The division will not change the value of the investors’ total interests in the company. It only increases the number of stocks that make up their portfolios. Tesla shareholders are getting four shares for every one they held last week.
Tesla remains a great target for short-sellers, investors who borrow the stock and sell it in hopes of buying it back at a lower price.
Elon Musk, Tesla’s chief executive, likes to point out (correctly, so far) that analysts have been consistently wrong and that Wall Street continues to increase its earnings forecasts and stock price targets.
Tesla may also get an additional boost if it is finally added to the top-notch S&P 500 index, a move that could happen soon now that the company has posted a steady series of profitable quarters.
Apple also went public on Monday after its split with stocks that are now about $ 400 cheaper after the split 4-1. Shares of Apple are now trading at $ 129.04 per unit, after gaining 3.4% on Monday. This figure should be compared to the cost of around $ 500 last week.
CNN Business’s Paul R. La Monica and David Goldman contributed to this report.