Tesla (NASDAQ: TSLA) announced that it would perform its 3:1 stock split in the form of a stock dividend after the close of trading on August 24. Trading will begin on August 25 on a stock split-adjusted basis.
“Tesla, Inc. (“Tesla”) announced today that the Board of Directors has approved and declared a three-for-one split of Tesla’s common stock in the form of a stock dividend to make stock ownership more accessible to employees and investors. Each stockholder of record on August 17, 2022 will receive a dividend of two additional shares of common stock for each then-held share, to be distributed after close of trading on August 24, 2022. Trading will begin on a stock split-adjusted basis on August 25, 2022,” the automaker said in a press release.
On June 10, Tesla filed a 14A with the SEC that declared one of its proposals would be to split its stock at a 3:1 ratio. It would be Tesla’s second stock split in the past two years, after it completed a 5:1 split in August 2020.
Last night at the company’s Cyber Roundup Shareholder Meeting, Tesla stockholders voted to approve the company’s motion for a 3:1 split.
The number of shares will multiply by three, with the stock price being adjusted by one-third. The valuation of Tesla as a company will not change. It is a way to make the stock less expensive so retail investors can buy more shares.
The 2020 stock split brought the price to $442.68 from $2,213.40.
Disclosure: Joey Klender is a TSLA Shareholder.
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