The electric-car maker said in March it would seek shareholder approval to boost share count. A Tesla service and sales center is shown in Vista, Calif. this month.
Photo:
MIKE BLAKE/REUTERS
Tesla Inc.
TSLA -3.12%
plans a 3-for-1 stock split, joining other technology companies with lofty share prices that have taken such a step to make ownership more accessible to individual investors.
The electric-car maker on Friday detailed the plan in a regulatory filing ahead of its planned Aug. 4 annual shareholder meeting. Tesla in March said it would seek shareholder approval for a stock split at that gathering, but at the time didn’t provide details.
America’s largest auto maker by market value said in the disclosure it would ask shareholders to approve the company issuing 4 billion more shares. Tesla is currently authorized to issue 2 billion shares. As of March 31 the company had around 1.04 billion shares outstanding.
Tesla shares closed down Friday at $696.69. Shares have fallen more than 40% since their November highs.
Tesla also said that
Oracle Corp.
ORCL -3.00%
co-founder
Larry Ellison
wouldn’t stand for reelection to be board. His term expires this year. He has been on Tesla’s board since December 2018.
Stock splits change the stock price, not the total value of an investor’s holding, although they have a history of generating a short-term rally in a company’s stock price. Companies say that the move also makes shares more accessible to small investors.
Already this year, two of the largest tech companies have pursued stock splits.
Amazon.com Inc.
AMZN -5.60%
recently implemented a 20-for-1 stock split, following shareholder approval last month. Shareholders of Google parent
Alphabet Inc.
GOOG -3.04%
earlier this month approved the company’s proposal for a 20-to-1 stock split, which takes effect in mid-July.
Tesla’s plan comes almost two years after Tesla enacted a 5-for-1 stock split as shares of the company run by
Elon Musk
rode to new heights. Tesla, at the time, said it was making the move “to make stock ownership more accessible to employees and investors.”
(More to Come)
Write to Denny Jacob at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
For all the latest Technology News Click Here
For the latest news and updates, follow us on Google News.
