Tesla sets August 25 as the trading day for the three-to-one split

(Reuters) – Tesla Inc said on Friday that trading in three-for-one split shares will begin on August 25, after electric vehicle maker’s shareholders approved the proposal at its annual meeting.

Electric vehicle manufacturer shareholders voted for board recommendations on most issues at the company’s annual meeting on Thursday, including re-election of directors, approval of the share split, and rejection of environmental and governance-centered proposals.

According to Refinitiv data, CEO Elon Musk owns 15.6% of Tesla shares, after selling millions of shares last year.

Each registered shareholder on August 17 will receive a dividend in the form of two additional shares for each share held, which will be distributed after the close of trading on August 24, the company said.

The new stock split comes two years after the five-for-one split has helped bring down the price of high-flying stocks within the reach of ordinary investors.

While the split does not affect the fundamentals of the company, it can raise the share price, making it easier for a wider range of investors to own shares.

Tesla shares, which debuted at $ 17 apiece in 2010, surged to over $ 1,200 by the end of the year following a 2020 stock split, reaching the company’s market capitalization above $ 1 trillion.

Tesla shares, which ended 6.6% lower on Friday, are down around 18% this year.

At Thursday’s meeting, shareholders narrowly approved an advisory proposal that would increase investors’ ability to nominate directors, with 339.2 million votes for the proposal and nearly 319 million votes against.

A shareholder proposal asking Tesla to report annual efforts to prevent racial discrimination and sexual harassment was rejected, with 350.7 million votes against compared to 310 million for the proposal.

(Reporting by Yuvraj Malik in Bengaluru; Editing by Maju Samuel)

Leave a Comment