It would seem that Tesla (TSLA) is looking to make its stock more affordable to investors in the very near future. The company has reportedly announced plans for a 3-to-1 stock split that would divide its common stock into three shares for every one, allowing for more volume of the stock while giving further shares to existing shareholders. This action also follows further tech companies like Google and Amazon which have recently made similar moves.
Tesla’s pending stock split was recently reported in regulatory filings on its Investor Relations website with the SEC, as shared by the Wall Street Journal. According to said filings, TSLA stock is set to be split into a 3-for-1 layout in which stockholders would receive two additional shares for every one that they already own. This move was reportedly already in the works earlier this year and Tesla teased it would be giving the vote to shareholders over the action as far back as March 2022 and ahead of its upcoming shareholder meeting on August 4, 2022, which will be held in Austin, TX.
With this move, Tesla stock will be purchasable in smaller slices and larger quantity. We’ve seen similar moves recently at other major tech firms as well. Amazon announced its own stock split and buyback program, dividing each one share of its AMZN common stock into 20 shares as it launched a $10 billion buyback. Google (GOOGL) parent company Alphabet also announced a buyback program, seeking to repurchase around $70 billion worth of its stock.
Tesla’s move to split its stock also comes in the face of various concerning matters at the company, such as Elon Musk’s sudden shutdown on remote work and another email in which he stated that 10 percent of the salaried company workforce should be cut. Even so, Tesla remains one of the most prominent car manufacturers in America and easily one of the biggest electric vehicle companies in the market. As it carries out this stock split, stay tuned for more Tesla updates here at Shacknews.