Tesla Inc said on Friday that trading in its three-for-one divided shares will begin on August 25 after shareholders accepted the plan at the company’s annual meeting.
At the income statement meeting on Thursday, shareholders voted for board proposals on most matters, including re-electing directors and accepting a stock split, while opposing suggestions focusing on the environment and governance.
According to Refinitiv statistics, Tesla CEO Elon Musk owns 15.6 percent of the company after transferring thousands of shares last year.
According to the firm, each shareholder of record on Aug. 17 will receive a dividend of 2 extra shares for each share retained, which will be delivered following the conclusion of trading on Aug 24.
The fresh share split consists two years after one five-for-one divide helped bring the high-flying stock’s price down to the level of ordinary investors.
While a split has no effect on a company’s economics, it may boost the stock value by allowing a broader group of investors to buy the stock.
Tesla shares, which launched at $17 per share in 2010, soared to more than $1,200 late last year following the 2020 stock split, boosting the company’s market capitalisation to more than $1 trillion.
Tesla shares, which fell 6.6 percent on Friday, are down around 18 percent this year.
