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Tesla to split shares 1:3 after market close on August 24 The last stock split sparked a surge in market value

via:凤凰网     time:2022/8/6 18:00:29     readed:86

Tesla announced today that IT will move forward with a 3-for-1 stock split and will pay a dividend to Stockholders after the market closes on August 24.

Yesterday, Tesla shareholders voted on a 1:3 stock split proposal and passed by a majority (more than 815 million shares in favor and 9 million shares against). Today, Tesla's Board of Directors issued a press release announcing that a stock split will take place on August 24 for all shareholders of record as of August 17:

Tesla Inc. announced today that its board of directors has approved and declared a three-way split of Tesla's common stock in the form of stock dividends to make shares more accessible to employees and investors. Each shareholder of record on August 17, 2022 will receive an additional dividend of two shares of common stock, which will be distributed after the close of business on August 24, 2022. The transaction will begin on August 25, 2022 as a stock split adjusted.

Tesla's last stock split dates back to 2020 (1 for 5), according to IT House. At the time, Tesla's stock price was only $1,300, but the announcement of the split drove it directly to an all-time high of $2,000 per share (up about 60% from announcement date to execution date), and that's when Tesla's market value began to soar, reaching its peak a year later.

Now Tesla is about to start another stock split, splitting one share for three. After the bell today, Tesla shares were trading at $864.51, down about 6%, giving it a market value of about $902.972 billion.

Typically, a stock split doesn't change a company's market value or affect the value of a shareholder's investment, but it can go some way to making a company's stock more attractive to retail investors. Large companies lower their share prices to spur interest and lower barriers to investment by retail investors, who often see stock splits as a sign of management confidence.

Since 2020, Apple, Nvidia and other tech giants with ultra-high market capitalization have split their stock. Earlier this year, Google parent Alphabet announced a 20-for-1 stock split in its quarterly statement. In June, Amazon's first stock split since 1999 became official, and its stock price is once again in triple digits.

Last month, Tesla reported its second-quarter results, which were ahead of market expectations despite a significant slowdown in both revenue and earnings growth from the first quarter. The stock has rebounded 50% from its May lows and is up 32% in July, its best month since October 2021.

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