On March 28, Tesla filed an 8K outlining the proposition of a stock split which will be subject to approval by the companies board of directors and its shareholders. The announcement has sent Tesla Stock higher this morning, now 5% higher in pre-market trading. The company will seek investor approval for the stock split at Tesla’s 2022 Investor Meeting, which will increase the number of shares outstanding of Tesla Stock.
The stock split announcement comes after both Amazon and Google announced splits to reduce the companies share price following years of high compound capital gains. The split will allocate additional shares to shareholders to compensate for the lowered share price. This dilution of the share price is generally good news for existing shareholders as behavioural trading tells us lowered share prices generally entice more investors. However, in this day and age the purchase of partial shares has become more common product offered by brokerages.
When is the 2022 Tesla Stock Split?
At this stage, Tesla has notified the SEC that further information will be released about the stock split including the split ratio, record date and the date and location of the Annual Meeting. The previous meetings have been in September 2020 and October 2021 respectively. Based on this information we can expect the meeting to take place in the third quarter, however Tesla will confirm this at a later stage.
The companies last split was in August 2020, following a steep incline of the companies share price. Since then, Tesla stock has grown 146% and the company now looks to reduce its stock price once again.
For the official Tesla Stock Split 8K filing, investors can find the link here.
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The content above is strictly for informational purposes only and is not financial advice nor does it constitute a recommendation. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.