Tesla announces a plan for a three-in-one 'stock split'to make shares cheaper and more accessible - freeing up more cash for the Elon Musk-owned company: Larry Ellison, 77, is leaving the board
Elon Musk's company made the announcement in their latest SEC filing, published on Friday, and said the annual meeting will be held on August 4
Tesla announced they were issuing four billion new shares in a three-in-one 'stock split' - a scheme they first floated in March this year
The procedure, approved by the board but needing shareholder approval, increases the number of shares, without diluting the value
The effect is to make each individual share significantly cheaper, and attract new buyers and an injection of cash
Tesla's shares closed on Friday at a little over $696 per share, meaning that if the split were to happen today, its stock would be worth $232 a share
The company said the move was to 'reset the market price of our common stock so that our employees will have more flexibility in managing their equity'
Tesla in August 2020 announced a five-in-one stock split, and the share price jumped 80 percent on the news
June 10, 2022
"Tesla has informed shareholders that it intends to complete a three-in-one 'stock split', designed to increase the number of shares available and bring down their price.
The update was published on Friday, as part of their latest SEC filing, which also announced an August 4 date for the annual shareholder meeting, and said that billionaire software magnate Larry Ellison, 77, was stepping down from the board.
Under the proposal, which the board has approved and now needs shareholder agreement, a person owning one share will now own three, with each of those shares worth a third of the original one."
Tesla's shares closed on Friday at $696, meaning that if the stock split went into effect immediately, each share would be worth $232.
The company said the scheme was to benefit their employees, saying it was designed to 'reset the market price of our common stock so that our employees will have more flexibility in managing their equity'.
Analysts said that the move was likely intended to encourage more people to buy shares, and bring a wave of new cash into the company.
Tesla's last stock split was in August 2020, with a five-in-one move that forced the share price up 80 percent.
Alphabet, the parent company of Google, and Amazon have also announced stock splits earlier this year.
Sauce/moar: https://www.dailymail.co.uk/news/article-10905617/Tesla-announces-plan-three-one-stock-split-make-shares-cheaper-accessible.html