Tesla (NASDAQ: TSLA) shareholders approved a proposal that will split the company’s stock at a 3:1 ratio. Shareholders approved the proposal at the company’s annual meeting, dubbed the Cyber Roundup, earlier today.
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.
“The primary purpose of the Authorized Shares Amendment is to facilitate a 3-for-1 split of our common stock in the form of a stock dividend (the “Stock Split”),” Tesla said in the filing. “As of June 6, 2022, we have 1,036,390,569 shares of common stock outstanding, and the current number of authorized shares of our common stock is 2,000,000,000, which is insufficient to effectuate the Stock Split. Our Board intends to approve the Stock Split, subject to and contingent upon stockholder approval of the Authorized Shares Amendment.”
The Cyber Roundup’s first portion read several stockholder proposals. After the votes were collected, shareholders approved the split.
A stock split means that the number of shares will triple, while the price on the date of the split will be reduced by a third. The company’s valuation remains the same, but it allows investors to buy shares at a less expensive price.
It is Tesla’s second stock split in the past two years. In August 2020, the automaker declared a 5:1 stock split, which brought the stock price down to $442.68 from $2,213.40.
Tesla has not yet announced the date of the split.
Disclosure: Joey Klender is a TSLA Shareholder.
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