This April 22, 2021, photo shows a Tesla Supercharger station in Buford, Ga. Tesla on Friday, June 10, 2022, proposed a three-for-one split of its stock, a move that would make a stake in the electric carmaker more accessible to investors but not affect the company’s overall market value.
Highlight
- Tesla on Friday (June 10) proposed a three-for-one split of its stock.
- The move that will make the electric car maker’s single stock more accessible to investors
- Tesla’s move will not affect the company’s overall market value
Tesla on Friday (June 10) proposed a three-for-one split of its stock, a move that would make the electric carmaker’s single stock more accessible to investors but would not affect the company’s overall market value.
Tesla Inc. made the announcement in its annual proxy statement, which also said Oracle co-founder Larry Ellison would not stand for re-election to the company’s board.
The company said in late March that it plans to split its stock for the second time in two years. The shares were trading at over $1,000 at the time.
But Tesla’s stock is down about 39% since early April, shortly after its CEO Elon Musk floated the idea of buying Twitter. Shares of the Austin, Texas-headquartered company closed Friday at $696.69.
Share splits are used by companies when the price of their stock becomes too high for retail investors to purchase individual shares, or when a company wants the stock to be more liquid in the market to trade. Shares exist.
More details from Tesla’s current statement:
In its statement, Tesla said it was trying to accomplish both of these goals: to offer a higher volume of shares to its employees, as well as to make the stock more accessible to retail investors.
Musk plans to use his Tesla shares as collateral to buy Twitter, as well as sell his stake in the company to aid in funding.
Tesla shareholders will vote on the share split at the company’s annual meeting on August 4.
Meanwhile, the company said Ellison, a major Tesla investor and friend of Musk, would step down from its board. Ellison was one of two independent members named on the board as part of a settlement with the Securities and Exchange Commission in late 2018 that called for more oversight of Musk.
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