Tesla files for a three-way stock split to make its shares more affordable - The Verge
Tesla is asking shareholders to approve a three-way stock split to reduce the price of its shares and help bring in more retail investors.
Tesla is asking its shareholders to approve a three-way stock split to help make the company’s shares cheaper for buyers.
The request is included in a list of provisions Tesla is planning to bring up at its August 4, 2022 shareholder meeting, which it filed Friday with the US Securities and Exchange Commission. Tesla is framing it as way to “reset” its stock price, which has gone up dramatically in the past few years — 43.5 percent since the company’s last stock split in August 2020.
“While this value appreciation has led to our employees benefiting enormously through the years, we want to make sure all employees, no matter when they join, have access to the same advantages,” the company states.
The electric car maker’s stock closed on Friday at $696.69 a share, down $22 from the previous day and at a total market valuation of more than $721.8 billion. But at prices that high, it’s difficult for individuals — especially retail traders using platforms like Robinhood — to own more than fractional shares of the company.
If the stock split goes into effect, Tesla shareholders would receive two additional shares of common stock on that date. Institutional investors are largely neutral on stock splits, considering the value of the stock tends to stay the same.