Tesla Seeks Shareholder Approval for Stock Split
The electric carmaker's shares are rising, although the timing and split ratio have yet to be determined
Tesla Inc. said it would seek shareholder approval at its annual meeting for an increase in the number of shares in the electric-car maker to accommodate a stock split, though the company didn't specify when such a split would occur or what the ratio of shares would be would look like.
Tesla shares closed at $1,091.84 on Monday, up 8%. The automaker usually holds its shareholders' meeting in the fall.
Tesla is currently eligible to issue 2 billion shares. As of January 31, the company had 1.03 billion shares outstanding.
The move follows Amazon.com Inc.'s announcement earlier this month that it would split its shares 20-for-1. Google parent <a class="tvreplink" target="_blank" href="https://www.tradingview.com/chart/?symbol=Nasdaq%3AGOOG">Alphabet Inc. announced a 20-for-1 stock split on Feb. 1, giving shareholders 19 more shares for every share they own.
The proposal comes almost two years after Tesla carried out a 5-for-1 stock split as shares of the Elon Musk-led company soared. At the time, Tesla said it wanted to “make it easier for employees and investors to access shares” with this step.
Shares of Tesla have soared over the past year as the company's vehicle deliveries have surged despite global supply chain bottlenecks and profits have also increased. That surge has made Musk the richest person in the world, according to the Bloomberg Billionaires Index.
The stock is down about 3% this year amid broader market turmoil following Russia's attack on Ukraine, which began last month. However, Tesla shares are still up more than 60% over the past year.
The announcement of the Tesla share split comes as the company is temporarily shutting down its Shanghai factory to reinforce the Covid-19 lockdown measures in China.
Mr Musk also tweeted on Monday that he had tested positive for the virus again.