Tesla (TSLA) will hold a vote at the 2022 Annual Meeting of Stockholders to approve a second stock split for the company.
According to a filing with the US U.S. Securities and Exchange Commission (SEC) on Monday, the vote will ask ““for an increase in the number of authorized shares of common stock…in order to enable a stock split of the Company’s common stock in the form of a stock dividend.”
The company also announced the plans on Twitter.
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
The last stock split took place in August 2020. That gave shareholders five shares for each share owned and lowering the share price from around $1,300 to about $260 per share.
The lower share price does not affect the value of the company, but it dilutes the share price and lowers the barrier of entry for the average consumer to purchase shares.
No further details were provided about how much the stock could split by in the upcoming vote.
The date for the 2022 Annual Meeting of Stockholders has also not been announced, but it typically takes place around the middle of the year.
Depending on share prices at the time, it could be another 5-1 split, or even as much as a 10-1 split.
Shares of Tesla (TSLA) responded positively to the news, up more than 7% on Monday morning at the time of publication.
Disclaimer: Darryn is a TSLA shareholder and has no plans to change positions within 72 hours.
