Tesla (TSLA) Announces 3-for-1 Stock Split with Stock Dividend Coming August 24

Tesla (TSLA) announced today that it is moving forward with its 3-for-1 stock split and the stock dividend will arrive on August 24.

Yesterday, Tesla shareholders voted on a 3-to-1 stock split proposal and approved it by a strong majority (over 815 million shares in favor and just 9 million shares against).

Today, Tesla’s Board of Directors issued a press release announcing that the stock split will take place on August 24 for all shareholders of record on August 17:

Tesla, Inc. (TSLA) (“Tesla”) today announced that the Board of Directors has approved and declared a three-for-one stock split of Tesla common stock in the form of a stock dividend to make shareholding more accessible to employees and investors. Each shareholder of record on August 17, 2022 will receive a dividend of two additional common shares for each share then held, to be distributed after the close of trading on August 24, 2022. Trading will commence on a stock split-adjusted basis. on August 25, 2022.

Tesla’s last stock split was just a few years ago in 2020. At the time, Tesla’s stock was trading at around $1,300 per share, but news of the stock split sent the stock split soaring. its share price at an all-time high of $2,000 per share.

The split resulted in a price per share reset to around $460 and a valuation of around $430 billion. The stock rose quite quickly after the 5-for-1 split with Tesla, roughly doubling its valuation over the next year.

Now, the automaker is doing another stock split for a 3-for-1 instead of 5-for-1, as the stock trades at $864 per share at market close today.

Approval of the new stock split hasn’t helped the stock so far, with Tesla down 6% today.

However, the impact of the previous split was mostly felt in the months following the issuance of the stock dividend.

As we reported earlier this week, Tesla stock could also be helped by finally shedding its junk bond rating and becoming a blue chip in the eyes of rating agencies.

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