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• Tesla wants to lower prices of its stock price
• Shareholders will vote on proposed stock split on August 4
Tesla Inc (NASDAQ: TSLA) on Friday proposed a three-to-one stock split to make its shares more affordable following a recent sell-off of the most valuable carmaker.
In its proxy statement with the SEC, the electric carmaker said, “Our success depends on attracting and retaining excellent talent,” and that “highly competitive compensation packages,” offering every employee an option to receive equity, helped Tesla to do so.
“We believe the Stock Split would help reset the market price of our common stock so that our employees will have more flexibility in managing their equity.”
Shares of the carmaker went up by more than 2.5% after-hours, having closed at $696.69 on Friday.
Tesla has fallen nearly 40% since Musk unveiled his stake in Twitter Inc (NYSE: TWTR) in early April, hurt in part by a strict lockdown in Shanghai that has affected the production of electric vehicles.
Shareholders will vote on Tesla’s proposed stock split on August 4. If approved, it would be the company’s first such action after a five-for-one split in August 2020.
Picture Credit: CNBC
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