American aerospace manufacturer SpaceX is preparing to split its shares at a ratio of 1:10, which means that investors who already hold SpaceX will convert 1 share to 10 shares. Market capitalization and total share price have no effect.
According to CNBC, SpaceX was valued at $560 per share in its most recent sale, and SpaceX’s stock price will drop to $56 per share after the split.
According to an internal SpaceX email, the stock split is cosmetic and will not fundamentally change the company. Certain companies occasionally conduct stock splits, such as high-growth tech companies such as Apple and Alphabet, so stock splits are also seen as a way to make stocks easier to acquire or manage.
Sources allege that SpaceX is conducting its first stock split. The company’s valuation has soared over the past few years, and SpaceX is now worth more than $100 billion as SpaceX raises billions of dollars to fund its Starship and Starlink initiatives.
SpaceX did not respond to this request.