Tesla to seek shareholder approval for stock split

• Tesla shares climbed nearly 8% to $1,088 a share in Monday trading

Tesla Inc (NYSE: TSLA) said on Monday it will request shareholder approval to increase its number of shares to enable a stock split in the form of a stock dividend.

Shares of the electric-car maker climbed nearly 8% to $1,088 a share in Monday trading.

The stock split has been approved by its board and will be up for voting for the shareholders at an annual meeting.

Stock splits alter the price of the stock while stock dividend is a dividend paid to shareholders in the form of additional company shares and thus the total value of an investor’s holding remains unchanged.

Also Read: Tesla’s Berlin Gigafactory gets the green signal for commercial production

The latest five-for-one stock split by the company was done in August 2020 making its shares cheaper. Shares of the company have jumped 128% since the stock split in 2020, valuing Tesla above $1 trillion.

Stock of the company fell around 4% this year due to the impact on the market after Russian invasion of Ukraine. In 2021, shares surged 49.8% and were up 743.4% in 2020. 

Picture Credits: Reuters