SpaceX CEO Elon Musk attends a post-launch press conference in the press room auditorium at NASA's Kennedy Space Center in Florida on May 30, 2020 after the agency's SpaceX Demo-2 mission to the International Space Station launches.
NASA / Kim Shiflett
The massive upswing from the Apple and Tesla stock splits shows signs that it is on its way.
Apple shares fell more than 4% from their record high on Wednesday, while Tesla also slid from its all-time high, falling 14.7%. The duo rallied in major rallies after their stock splits were announced to drive interest from regular investors.
Apple, the only U.S. company with a market capitalization of over $ 2 trillion, has surged nearly 40% since the tech giant announced the corporate action on July 30. Meanwhile, the electric car maker rose more than 70% after the 5-to-1 share announcement shared on Aug. 11.
Their splits took place on Monday, causing another knee-jerk pop in both stocks. Tesla rose more than 12% that day while Apple gained more than 3%.
A stock split could theoretically encourage ownership of retail stocks as the cheaper stock price is more accessible to individual investors. However, it doesn't change a company's underlying fundamentals or the intrinsic value of its stocks.
Tesla's decline on Wednesday was also due to Baillie Gifford, the largest outside shareholder, trimming her position in the company from 6.3% to less than 5%.
The two companies were among the year's biggest winners as investors continued to focus on high-growth technologies and the booming electric vehicle market. Shares in the Elon Musk-led company are up a whopping 460% in 2020, while Apple is up more than 80%.
Amid the incredible run, Tesla said Tuesday it would sell up to $ 5 billion in new shares.
Subscribe to CNBC PRO for exclusive insights and analysis as well as live business day programs from around the world.