After today’s market closes, Tesla’s shares will be split 3 for 1, After the close of trading on Wednesday, shareholders in Elon Musk’s electric vehicle company will receive two more shares of Tesla at no further cost. In addition, on Thursday, they will begin trading on a basis that takes into account the stock split.
Despite the fact that the stock split won’t affect the company’s equity in any way that is fundamental, the expectation caused Tesla’s share prices to rise by approximately 1.8% on Wednesday morning.
During the annual meeting held by Tesla on August 4 in Austin, Texas, shareholders cast their votes in favor of approving the 3-for-1 stock split offered by the firm.
The split will, in theory, make it possible for more retail investors to purchase Tesla stock; however, the number of retail investors is negligible when compared to the number of institutional investors, and fractional shares were already available to individuals with lesser investment amounts.
In a proxy filing made earlier this year proposing the new split, Tesla wrote that the move was primarily intended to assist the company in “offering every employee the option of receiving equity,” and to assist Tesla in “resetting the market price” of its common stock in order to provide employees with “flexibility in managing their equity.”
[Tesla] wrote that the move was also intended to assist Tesla in “resetting the market price” of its common stock in order to assist Tesla in “offer
On August 17, 2022, investors will be entitled to acquire an additional two shares of Tesla for each existing share of Tesla that they possess.
In August of 2020, Tesla completed its most recent stock split, which was conducted on a 5-for-1 basis.