During the Tesla (TSLA) 2022 Annual Meeting of Stockholders, a number of proposals were presented for shareholders to vote on. Among the results of these proposals include how shareholders voted to approve a 3:1 stock split.
For those unfamiliar, a 3-for-1 stock split essentially triples the number of outstanding shares that investors hold, but at the same time also reduces the price by dividing the old share price by 3. For example, if you own one share at $90 a share, a 3-1 split would result in 3 shares valued at $30 each.
Something interesting to note is that today’s approval of a 3:1 stock split marks the second time the company’s stock has been split, having seen previous approval for a five-for-one split back in August of 2020.
As for why Tesla is seeking another stock split includes the fact that shares rose to “more than $1,200 late last year after the 2020 stock split,” as reported by Reuters. Also as noted by Reuters is that while the split won’t affect the company’s fundamentals, “it could buoy the share price by making it easier for a wider range of investors to own stock.”
For more on what else Tesla has been up to lately, check out some of our previous coverage including how Musk has said that Tesla’s Cybertruck will be available by mid-2023.