Apple, Tesla Continue Crazy Hot Streak On First Day Of Split Adjusted Trading

Apple Inc. AAPL and Tesla Inc. TSLA both had strong days Monday after splitting shares of their stock.

What Happened: Apple's four-for-one split took effect after Friday's close. This followed the company’s announcement back in July that it would split shares for the first time since 2014. Shares gained more than 30% from the split announcement to today.

Tesla split shares five-for-one in the company’s first stock split. Tesla announced a stock split back on Aug. 11 and saw shares gain over 60% since that announcement.

See Also: Is Tesla Pulling Off A 'Business Miracle'?

Why Shares Split: Companies often split their shares to make the price more affordable for retail investors. Apple shares were trading at $502 prior to the split, making it hard for small investors to buy more than a few shares.

Apple previously split shares in 1987, 2000 and 2014. Apple shares are up over 400% since their last split in 2014.

Tesla shares traded for $2,280 before today's split. The five-for-one split will give new investors a chance to accumulate shares of the EV company.

Split Adjusted Debut: Apple shares traded as high as $131 and closed Monday's trading session at $129.04, good for a 3.4% gain on the day. Apple shares are now up 70% in 2020.

Tesla shares hit a high of $500.14 during Monday’s trading session and closed at $498.32. This represented a 12.6% gain on the new split-adjusted stock price. Shares of Tesla are now up 435% in 2020.

Tesla also became the seventh-largest U.S. company by market capitalization, sitting around $464 billion at Monday’s close.