{"id":18616,"date":"2022-03-28T06:57:51","date_gmt":"2022-03-28T10:57:51","guid":{"rendered":"https:\/\/autosector.com\/?p=18616"},"modified":"2022-03-28T06:57:51","modified_gmt":"2022-03-28T10:57:51","slug":"tesla-tsla-2022-stock-split-shareholders-vote","status":"publish","type":"post","link":"http:\/\/autosector.com\/?p=18616","title":{"rendered":"Tesla (TSLA) announces another stock split, dividend; shareholders to vote later this year"},"content":{"rendered":"

Tesla (TSLA) announced today that it is planning a new stock split toward a possible dividend, and it is going to put it to a shareholder vote later this year.<\/p>\n

Back in 2020, Tesla announced a five for one stock split<\/a>.<\/p>\n

At the time, Tesla\u2019s stock was trading at around $1,300 a share, but the stock split announcement sent its stock price surging to a record high of $2,000 a share<\/a>.<\/p>\n

The split resulted in the price per share being reset at around $460<\/a> billion or $430 billion market capitalization.<\/p>\n

There have been ups and downs since, but Tesla\u2019s stock is now up 63% over the last 12 months, and it is now trading at over $1,000 a share again and at over $1 trillion in market cap.<\/p>\n

Today, the automaker announced another stock split \u2013 pending shareholder approval.<\/p>\n

Tesla wrote in a new SEC filing today:<\/p>\n

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On March 28, 2022, Tesla, Inc. (the \u201cCompany\u201d or \u201cTesla\u201d) announced its plan to request stockholder approval at the upcoming 2022 Annual Meeting of Stockholders (the \u201cAnnual Meeting\u201d) for an increase in the number of authorized shares of common stock through an amendment to the Company\u2019s Amended and Restated Certificate of Incorporation (the \u201cAmendment\u201d) in order to enable a stock split of the Company\u2019s common stock in the form of a stock dividend. Tesla\u2019s Board of Directors (\u201cBoard\u201d) has approved the management proposal, but the stock dividend will be contingent on final Board approval.<\/p>\n<\/blockquote>\n

The filing didn\u2019t include details about the proposed split, but more should be released with materials for the shareholder\u2019s meeting, which is generally held in June. The split would theoretically allow Tesla to pay a dividend to shareholders. That would attract a new type of shareholder to TSLA ranks. <\/p>\n

Tesla also tweeted about the planned stock split:<\/p>\n

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Tesla will ask shareholders to vote at this year\u2019s annual meeting to authorize additional shares in order to enable a stock split.<\/p>\n

\u2014 Tesla (@Tesla) March 28, 2022<\/a><\/p>\n<\/blockquote>\n<\/div>\n<\/figure>\n

The announcement today sent Tesla\u2019s stock price up 5% in pre-market trading \u2013 or about $1,060 a share.<\/p>\n

Traditionally, companies have announced stock splits to make their price per share more reasonable after their stock price has risen considerably. It makes the stock more accessible to smaller individual investors.<\/p>\n

However, the practice has become less useful in recent years as most individual investors have moved to apps like Robinhood<\/a> (US) and WealthSimple<\/a> (Canada), which allow the purchase of fractional shares on big stocks like Tesla\u2019s.<\/p>\n

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