Tesla will ask shareholders to vote to authorize more shares
Tesla Inc. will seek investor approval to increase its number of shares to allow for a stock split in the form of a dividend, the electric carmaker said on Monday, sending its shares soaring more than 5% on Monday. market opening.
The proposal has been approved by its board of directors and shareholders will vote on it at the annual meeting. The stock split, if approved, would be the last after a five-for-one split in August 2020 that made Tesla shares cheaper for its employees and investors.
Following a pandemic-induced rally in tech stocks, Alphabet Inc., Amazon.com and Apple Inc. also recently split their shares to make them more affordable.
Telsa, which debuted at $17 per share in 2010, is trading above $1,000. Since the stock split in 2020, they have jumped 128%, bringing market capitalization to more than $1 trillion and making the company the largest U.S. automaker by that measure.
Tesla’s electric cars are among the best-selling and it has delivered nearly a million cars a year, while ramping up production by setting up new factories in the United States and Europe.
However, the company is also starting to face competition as traditional automakers such as Ford and General Motors, and startups such as Rivian enter the market, giving consumers a number of new options.
Tesla said the stock dividend would depend on final approval.