Even die-hard fans must be wondering if Tesla stock is moving too fast | Nils Pratley

Stock split is merely cosmetic for company whose valuation seems to be controlled by pure psychology

You have to admire Elon Musk's stage management. On Monday, the Tesla founder delivered a crowd-pleasing five-for-one stock split, transforming a $2,300 share price into a smaller figure to make ownership more accessible". The economic effect of the change was precisely zero - investors just got four additional shares for each one they owned - but Tesla's shares surged 12% anyway.

On Tuesday, Musk produced a twist. Since investors are clearly keen to throw money at Tesla at almost any price, the company will issue new shares to raise $5bn for general corporate purposes". The explanation was gloriously vague but, in Tesla's shoes, you can afford to be loose. With a stock valuation of $460bn, the new shares represent minimal dilution for existing investors. It would almost be silly not to take advantage.