Tesla this afternoon announced in a regulatory filing it will soon undergo a five-for-one split of the automaker’s common stock (TSLA).
With share prices recently as high as $1,794.99, the move is intended to make stock ownership more accessible to the average investor. The split will come in the form of a dividend of four additional shares to existing shareholders as of August 21, 2020. Those will be distributed after the market’s close on August 28, 2020.
Here is a copy of the full statement released via Tesla’s investor website:
Tesla, Inc. (“Tesla”) announced today that the Board of Directors has approved and declared a five-for-one split of Tesla’s common stock in the form of a stock dividend to make stock ownership more accessible to employees and investors. Each stockholder of record on August 21, 2020 will receive a dividend of four additional shares of common stock for each then-held share, to be distributed after close of trading on August 28, 2020. Trading will begin on a stock split-adjusted basis on August 31, 2020.
After the news was released, Tesla shares were up nearly 8% higher in after-hours trading.
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— Drive Tesla 🇨🇦 (@DriveTeslaca) August 11, 2020