money Musk Always Cared About 'The Little Guy' And Tesla Stock Split Shows That: WSJ's Higgins
Tesla Inc (NASDAQ: TSLA) announced Tuesday a 5-for-1 stock split and this is consistent with CEO Elon Musk's belief in looking out for small investors, The Wall Street Journal's Tim Higgins said on CNBC.
The 'Little Guy' Built Tesla: Musk's vision since taking Tesla public 10 years ago was to always want "the little guy" having a seat at the table as an investor, Higgins said. He noted that Musk set aside Tesla stocks for early Roadster buyers because he believed they "helped make the company."
Tesla's stock split could be seen as a move consistent with Musk's vision. By splitting the stock price, buying one share will be more affordable to retail investors who don't want fractional ownership of a share through a platform like Robinhood.
See Also: Experts React To Tesla Stock Split, Trading Action: 'Kind Of Ridiculous
Musk Is Selling A Vision: Musk continues to offer investors the same story presented years ago. Tesla is a "narrative story" about the future of transportation and even the world, Higgins said. This vision is "pretty exciting" to retail investors although experts and analysts might have to do "very ambitious math" to justify the current valuation.
Nevertheless, retail investors believe the future of Tesla will include self-driving taxi cars and alternative energy offerings.
"The fact that Elon Musk has gotten to this point, that four quarters of profitability, as messy as they may have been, suggests that he can execute," Higgins said. "And if he can execute on this, what can he do going forward?"
Photo Courtesy: Steve Jurvetson on Flickr.
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