Tesla (TSLA) announced today that it is moving forward with its 3-for-1 stock split with the stock dividend coming on August 24.
Yesterday, Tesla shareholders voted on a 3-for-1 stock split proposal and approved it with a large majority (over 815 million shares in favor and only 9 million shares against).
Today, the Tesla board of directors issued a press release to announce that the stock split will take place on August 24 for all shareholders of record on August 17:
Tesla, Inc. (TSLA) (“Tesla”) today announced that the Board of Directors approved and declared a three-for-one split of Tesla common stock in the form of a stock dividend to make stock ownership more accessible to employees and investors. Each shareholder of record on August 17, 2022 will receive a dividend of two additional shares of common stock for each share held at that time, to be distributed after the close of trading on August 24, 2022. Trading will commence on a stock split adjusted basis on August 25, 2022.
Tesla’s last stock split dates back to just a few years ago in 2020. At the time, Tesla stock was trading at around $1,300 per share, but the announcement of the stock split caused its stock price to rise. rose to a record $2,000 per share.
The split resulted in the share price being reset to around $460 and a valuation of around $430 billion. The stock grew fairly quickly following the 5-for-1 split with Tesla, roughly doubling its valuation over the next year.
Now the automaker is doing another stock split for a 3-for-1 instead of a 5-for-1, while the stock is trading at $864 a share as of today’s market close.
The approval of the new stock split has not helped the stock so far as Tesla fell 6% today.
However, the impact of the previous split was mainly felt during the months after the stock dividend was issued.
As we reported earlier this week, Tesla stock could also benefit if it were to finally shed its junk bond rating and become a blue chip in the eyes of rating agencies.
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