Tesla sets August 25 as trading day for three-for-one split stock

(Reuters) – Tesla Inc said on Friday that trading in its three-for-one stock split would begin on August 25, after the electric vehicle maker’s shareholders approved the proposal at its annual meeting.

Shareholders of the electric vehicle maker voted for the board’s recommendations on most issues at the company’s annual meeting on Thursday, including re-election of directors, approval of a stock split , while rejecting proposals focusing on the environment and governance.

Chief Executive Elon Musk owns 15.6% of Tesla, according to Refinitiv data, after selling millions of shares last year.

Each shareholder of record on Aug. 17 will receive a dividend of two additional shares for each share held, to be distributed after markets close on Aug. 24, the company said.

The new stock split comes two years after a five-to-one split helped drive down the price of high-flying stocks within reach of ordinary investors.

While a split won’t affect a company’s fundamentals, it could support the stock price by making it easier for a wider range of investors to own the stock.

Shares of Tesla, which debuted at $17 each in 2010, rose to over $1,200 by the end of the year after the 2020 stock split, bringing the company’s market capitalization to more than 1 trillion dollars.

Shares of Tesla, which ended down 6.6% on Friday, are down about 18% this year.

At Thursday’s meeting, shareholders narrowly approved an advisory proposal that would increase investors’ ability to appoint directors, with 339.2 million votes for the proposal and nearly 319 million votes against.

A shareholder proposal asking Tesla to report annually on its efforts to prevent racial discrimination and sexual harassment was defeated, with 350.7 million votes against against the proposal’s 310 million votes.

(Reporting by Yuvraj Malik in Bengaluru; Editing by Maju Samuel)

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