Tesla calls for 3-for-1 stock split
Tesla has just filed its annual proxy statement with the SEC and revealed that it plans a three-for-one stock split, and that board member Larry Ellison does not plan to run again.
Shares of Tesla rose more than 1% after hours after closing at $696.69 on Friday.
In the filing, the company wrote of the proposed stock split, “Our success depends on attracting and retaining excellent talent,” and that “highly competitive compensation packages,” offering each employed an option to receive stock, helped Tesla do so. “We believe the stock split would help reset the market price of our common stock so that our employees have more flexibility in managing their equity.”
A stock split is cosmetic and could mean smaller investors feel they can afford the stock, but those investors are tiny compared to larger institutions. Many brokerages already offer investors split trades, allowing small investors to buy a slice of a seemingly expensive stock.
In its 2022 proxy filing, the electric vehicle and renewable energy industry also disclosed that board member Larry Ellison currently owns 1.5% of Tesla shares. Ellison plans to step down as a Tesla board member.
The filing also says that Tesla CEO Elon Musk currently owns 23.5% of Tesla stock and Vanguard owns 6% of Tesla stock. Musk has sold a sizable chunk of his Tesla holdings since late 2021, in part to boost a stake in Twitter, the social media giant he agreed to acquire for around $44 billion.
Tesla announced a similar five-for-one stock split in August 2020.
In thirteen different shareholder-suggested proposals, Tesla is asked to review and disclose more about its anti-harassment and discrimination efforts, lobbying practices, supply chains and workforce, as well as details of its own water use and water-related climate impacts and risks. .
The company plans to hold its annual shareholder meeting online and with a limited number of shareholders invited to attend in person at the new Tesla factory in Austin, Texas on August 4, 2022.