Tesla files for 3-for-1 shares split
Key takeaways:
- Tesla just filed its yearly proxy statement with the SEC, announcing plans for a three-for-one stock division and that board member Larry Ellison does not intend to stand for re-election.
- Shares of Tesla were up by almost 1% after-hours, closing at $696.69 on Friday.
Tesla just filed its yearly proxy statement with the SEC and disclosed it plans a three-for-one stock split and that board member Larry Ellison does not intend to stand for re-election.
Shares of Tesla were up by almost 1% after-hours, closing at $696.69 on Friday.
In the filing, the firm wrote of the offered stock split, “Our success relies on drawing and retaining exceptional talent,” and that “highly competitive compensation packages,” offering every worker an option to get equity, helped Tesla do that. “We think the Stock Split would help reset the market worth of our common stock so that our workers will have more flexibility in handling their equity.”
A stock split is cosmetic and could suggest that smaller investors feel they can afford the share, but those investors are tiny compared to significant institutions. Many brokerages present investors with fractional trading, letting small investors purchase a piece of seemingly pricey stocks.