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

The logo of car manufacturer Tesla is seen at a branch in Bern, Switzerland, October 28, 2020. REUTERS/Arnd Wiegmann

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Aug 5 (Reuters) – Tesla Inc (TSLA.O) said on Friday that three-for-one trading of its shares will start on August 25, after the electric vehicle maker’s shareholders approved the proposal during its annual meeting. .

Shareholders of the electric-vehicle maker voted in favor of the board’s recommendations on most issues at the company’s annual meeting on Thursday, including reappointing directors, approving a stock split and rejecting proposals. focused on the environment and governance.

Chief Executive Elon Musk owns 15.6% of Tesla, according to Refinitiv data, after selling millions of shares last year.

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Each shareholder of record on August 17 will receive a dividend of two additional shares for each share they own, to be distributed after the close of business on August 24, the company said.

The new stock split comes two years after a five-for-one split helped push the price of high-flying shares out of the reach of ordinary investors.

While a split doesn’t affect a company’s fundamentals, it could boost the share price by making it easier for a broader range of investors to own the shares.

Tesla shares, which debuted at $17 each in 2010, rose to more than $1,200 by the end of the year after the 2020 stock split, pushing the company’s market capitalization to more than $1 trillion.

Shares of Tesla, which ended 6.6% lower on Friday, are down 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 in favor of the proposal and nearly 319 million votes against.

The shareholder proposal calling for Tesla to report annually on its efforts to prevent racial discrimination and sexual harassment was defeated, with 350.7 million votes against the proposal’s 310 million votes. read more

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Reporting from Yuvraj Malik in Bangalore; Edited by Maju Samuel

Our standards: the Thomson Reuters Trust Principles.

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