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

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

Yesterday, Tesla shareholders voted and approved a proposed 3-for-1 stock split by a strong majority (more than 815 million shares in favor and just 9 million shares against).

Today, the Tesla board issued a press release announcing that the stock split will take place on August 24 for all registered shareholders on August 17:

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

Tesla’s last stock split dates back to just a few years ago in 2020. At the time, Tesla’s stock was trading at about $1,300 a share, but the announcement of the stock split pushed the stock price to an all-time high of $2,000 a share.

The split resulted in a price per share of approximately $460 and a valuation of approximately $430 billion. The stock grew quite quickly after the 5-for-1 split with Tesla, roughly doubling its valuation the following year.

Now, the automaker is doing another stock split for a 3-for-1 instead of 5-for-1, while the stock is trading at $864 a share at today’s close.

The approval of the new stock split has not helped the stock so far as Tesla is down 6% today.

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

As we reported earlier this week, Tesla’s 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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