Opinion: New Tesla Stock Split Would Reward Shareholder Support

Sign up for daily news updates from CleanTechnica on email. Or follow us on Google News!

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.

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.

Have a tip for CleanTechnica? Want to advertise? Want to suggest a guest for our CleanTech Talk podcast? Contact us here.

CleanTechnica Holiday Wish Book

Holiday Wish Book Cover

Click to download.

Our Latest EVObsession Video

I don't like paywalls. You don't like paywalls. Who likes paywalls? Here at CleanTechnica, we implemented a limited paywall for a while, but it always felt wrong — and it was always tough to decide what we should put behind there. In theory, your most exclusive and best content goes behind a paywall. But then fewer people read it!! So, we've decided to completely nix paywalls here at CleanTechnica. But...
Like other media companies, we need reader support! If you support us, please chip in a bit monthly to help our team write, edit, and publish 15 cleantech stories a day!
Thank you!

CleanTechnica uses affiliate links. See our policy here.

Johnna Crider

Johnna owns less than one share of $TSLA currently and supports Tesla's mission. She also gardens, collects interesting minerals and can be found on TikTok

Johnna Crider has 1996 posts and counting. See all posts by Johnna Crider