Tesla ( TSLA ) announced today that it is moving forward with a 3-for-1 stock split, with the stock dividend coming on August 24th.
Yesterday, Tesla shareholders voted 3 to 1 in favor of the proposed stock split and approved it by a large majority (more than 815 million shares in favor and only 9 million shares against).
Today, Tesla’s board issued a press release announcing that the stock split will take place on August 24th. to all shareholders of record on August 17:
Tesla, Inc. (TSLA) (Tesla) announced today that its board of directors has approved and declared a three-for-one stock dividend of Tesla common stock to make stock ownership more accessible to employees and investors. Each shareholder of record in 2022 August 17 will receive a dividend of two additional shares of common stock for each share then held, which will be distributed after the close of business in 2022. August 24 Trading will commence on a stock split adjusted basis. August 25, 2022
Tesla the last stock split dated just a few years ago, in 2020. At the time, Tesla stock was trading at around $1,300 per share, but after the stock split was announced, the stock price rose to a record high of $2,000 per share.
The split priced the stock at about $460 a share and valued it at about $430 billion. The stock rose relatively quickly after the 5-for-1 split with Tesla, doubling in value over the next year.
Now, the automaker is doing another 3-for-1 stock split instead of 5-for-1, and the stock is trading at $864 per share at today’s close.
Confirmation of the new stock split hasn’t helped the stock so far, with Tesla down 6% today.
However, the impact of the previous split was usually felt months after the stock dividend was issued.
As we reported earlier this week, Tesla stock may finally be helping after shedding its junk bond rating and become a blue chip in the eyes of rating agencies.
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