Opinion: New Tesla Stock Split Would Reward Shareholder Support
Support CleanTechnica's work through a Substack subscription, on Patreon, or on Stripe. Help us produce all of the high-quality, original content we publish week after week despite the challenges of content-scraping AI, antisocial media, inflation, and other hurdles.
Tesla’s proposed stock split would reward shareholders for their support. Tesla’s recent filing with the US Securities Exchange Commission shows that it wants to split the stock so that the company can pay a stock dividend to its shareholders. Tesla announced on Twitter that it will ask shareholders to vote during the annual meeting to authorize additional shares in order to enable a stock split.
Tesla will ask shareholders to vote at this year’s annual meeting to authorize additional shares in order to enable a stock split.
— Tesla (@Tesla) March 28, 2022
At the next shareholder meeting, Tesla will ask shareholders to vote on authorizing a stock split, the company announced on Twitter. According to a filing with the US Securities Exchange Commission (SEC), Tesla noted that it wants to split the stock so it can pay a stock dividend to shareholders. This type of dividend comes in the form of additional company shares instead of cash and does not affect the value of the company. However, such a dividend dilute its share price. CNBC explained further:
“If there is a 6-for-1 split, investors will get a stock dividend of five shares for every one share of Tesla they own. This would be a one-time event.”
This is the second time Tesla is splitting its stock. The first time was in 2020 when the stock price soared.
Tesla Stock Split Would Reward Shareholders
I think this is Tesla’s way of saying thank you to the shareholders who have steadfastly supported the company during its harder times. Sadly, I had to sell my shares, but I do play to reinvest soon. I believe in Tesla and its mission and have been very transparent about that.
There have been a lot of misleading reports, misinformation, and even disinformation put forth by various organizations and individuals about Tesla and Elon Musk, but long-term shareholders have held their faith during those intense times.
Sign up for CleanTechnica's Weekly Substack for Zach and Scott's in-depth analyses and high level summaries, sign up for our daily newsletter, and follow us on Google News!
Have a tip for CleanTechnica? Want to advertise? Want to suggest a guest for our CleanTech Talk podcast? Contact us here.
Sign up for our daily newsletter for 10–15 new cleantech stories a day. Or sign up for our weekly one on top stories of the week if daily is too frequent.
CleanTechnica uses affiliate links. See our policy here.
CleanTechnica's Comment Policy
