Tesla (TSLA) announces a 3-to-1 stock split with a stock dividend on August 24

Tesla (TSLA) announced today that it is moving forward with a 3-to-1 stock split with the stock dividend coming August 24th.

Yesterday, Tesla shareholders voted on the proposed 3-to-1 split and approved it by an overwhelming majority (over 815 million shares for and only 9 million shares against).

Today, Tesla’s board of directors released a press release to announce that the stock split will take place on August 24 for all record shareholders on August 17:

Tesla, Inc. (TSLA) (“Tesla”) announced today that the Board of Directors has approved and announced a 3-for-1 split of Tesla common stock as dividends to make stock ownership more accessible to employees and investors. Each registered shareholder on August 17, 2022 will receive a dividend in the form of two additional ordinary shares for each share then held, which will be distributed after the close of trading on August 24, 2022. Trading will commence on a split-share basis on August 25, 2022.

Tesla’s last stock split dates back just a few years ago in 2020. Tesla’s stock was around $ 1,300 a share at the time, but the announcement of the stock split pushed the stock price to a record $ 2,000 a share.

The split reset the price per share to about $ 460 and a valuation at about $ 430 billion. Shares rose fairly quickly after splitting 5 for 1 with Tesla, roughly doubling its valuation over the next year.

Now the car maker is making another stock split at 3 for 1 instead of 5 for 1, while the stock price at today’s close is $ 864 per share.

The approval of the new share split has not helped the shares so far, as Tesla fell 6% today.

However, the impact of the previous split was most felt in the months following the issuance of the share dividend.

As reported earlier this week, Tesla shares could also help to eventually get rid of the junk bond rating and become a blue chip in the eyes of rating agencies.

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