Tesla stock split 2022 news is already doing the rounds. Elon Musk’s Tesla has filed its proxy statement with the SEC, revealing plans for a 3-for-1 stock split. Through the filing, the notice has been provided for the 2022 Annual Meeting of stockholders to be held on Augusts 4, 2022.
Among the various proposals that will be voted on at the 2022 Annual Meeting, an important one is to increase the number of authorized shares of common stock by 4,000,000,000 shares. The Tesla’s Board has approved the Authorized Shares Amendment subject to its adoption by the stockholders.
The primary purpose of the Authorized Shares Amendment is to facilitate a 3-for-1 split of the common stock in the form of a stock dividend (the “Stock Split”).
As per the Filing, Elon Musk holds 23.5 per cent while The Vanguard Group holds 6 per cent of Tesla’s shares.
Tesla stock price fell by 3.12 per cent to close at $696.69 on June 10.
As of June 6, 2022, Tesla has 1,036,390,569 shares of common stock outstanding, and the current number of authorized shares of the common stock is 2,000,000,000, which is insufficient to effectuate the Stock Split. Tesla’s Board intends to approve the Stock Split, subject to and contingent upon stockholder approval of the Authorized Shares Amendment.
As per the Filing, since the stock split in August 2020 to June 6, 2022, Tesla’s stock price has risen nearly 43.5%.
The closing prices of Tesla’s stock on the first trading day of each of 2020, 2021 and 2022 were $86.05, $729.77 and $1,199.78, respectively (as adjusted for the five-for-one stock split effected in the form of a Stock Split.
As retail investors have expressed a high level of interest in investing in Tesla stock, the Stock Split will also make the stock more accessible to the retail shareholders.
Tesla’s 2022 Annual Meeting of Stockholders will be held on Thursday, August 4, 2022, at Tesla’s Gigafactory Texas.