Tesla announces date of 3:1 stock split

Tesla exhibits its electric cars and energy products at the 2018 LA Auto Show. [Credit: Christian Prenzler/Teslarati]

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.

I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.

Joey Klender: Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his time at TESLARATI, Joey has broken several big stories, including the first images of the Tesla Model S Plaid, the imminent release of the 4680 Model Y through EPA certification, and several expansions to the Lucid AMP-1 factory in Arizona, to name a few. His stories have been featured in several publications, including Yahoo! Finance, Fox News, CNET, and Seeking Alpha. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on Twitter @KlenderJoey.
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