Tesla shareholders approved a three-for-one stock split yesterday in an attempt to attract more retail investors to the company.
The split will bring Tesla stocks to around the $300 range, but Tesla did not confirm when this will happen.
Tesla announced the plan for the three-to-one split back in March, so this does not come as a surprise.
Tesla will ask shareholders to vote at this year’s annual meeting to authorize additional shares in order to enable a stock split.
— Tesla (@Tesla) March 28, 2022
Although many expected Tesla to take the plan to a vote immediately, the four-month delay may have helped the company and its shareholders.
Tesla has recently experienced a stock price rally and was trading at $928.55 at the evening bell last night.
This represents a 37 per cent rise since the end of June.
This is the second stock split for Tesla in less than two years.
Back in 2020, Tesla completed a five-to-one stock split that says their stock surged 60 per cent from the day of the announcement to the execution date.
Stock splits are not uncommon, and many leading market analysts are seeing them become more popular as companies look to attract younger retail investors.
Although we are not sure how the market will react to the latest split, it does not look like it has started well.
As of 12:30 EST, Tesla stock was down to $877.06 and dropping. However, this could correct and follow the same path as the previous stock between now and execution.