NEW YORK — Tesla shares are much, much cheaper Monday after the stock's 5-1 split.
Even though Tesla's stock closed 12.5% higher at $498.32 a share Monday, that's still about $1,800 cheaper than where it was trading on Friday. The company announced the stock split earlier this month, making shares more affordable for average investors.
Monday was the first day of trading in the Dow since the 30-company average had its lineup of companies revamped. Salesforce.com, Amgen and Honeywell International are replacing Exxon Mobil, Pfizer and Raytheon Technologies. The shuffle was triggered by a 4-for-1 stock split in Dow member Apple. Tesla's 5-for-1 stock split also took effect Monday.
Apple was up 3.4% while Tesla vaulted 12.5%.
Tesla's split will not change the value of investors' total holdings of the company. It will just grow the number of shares making up their portfolios. Tesla stockholders are getting four shares for each share they held last week.
Tesla continues to be a big target of short sellers, who are investors who borrow the stock and sell it with the hopes of eventually buying it back at a lower price.
Elon Musk, Tesla's CEO, has said that analysts have been consistently wrong and that Wall Street keeps raising its earnings forecasts and price targets on the stock.
Tesla may also get a further boost if it is finally added to the blue-chip S&P 500 index, a move that could soon happen now that the company has posted a consistent run of profitable quarters.
— CNN Business' Paul R. La Monica and David Goldman and the Associated Press contributed to this report.