Elon Musk, during an event at SpaceX headquarters in Hawthorne, California, US, on Thursday, October 10, 2019.
Bloomberg / Getty
Tesla just submitted it annual mandate statement with the SEC and disclosed that it plans to have a three-for-one stock split, and that board member Larry Ellison has no plans to run for reelection.
Shares of Tesla rose more than 1% after hours and closed at $696.69 on Friday.
In the filing, the company wrote of the proposed stock split, “Our success depends on attracting and retaining outstanding talent” and that “competitive compensation packages” , which gives every employee an option to receive equity, has helped Tesla do that. “We believe a Stock Split will help reset the market price of our common stock to give our employees more flexibility in managing their equity.”
Stock splits are aesthetic but can mean that smaller investors feel they can afford the stock, but those investors are tiny compared to large institutions. Many brokerages have also offered investors fractional trading, allowing small investors to buy a portion of seemingly expensive stocks.
In its 2022 mandate filing, the electric vehicle and renewable energy businesses, also revealed that board member Larry Ellison now owns a 1.5% stake in Tesla. Ellison plans to step down from his duties as a Tesla board member, but filings do not say who could replace him.
The filing also shows that Tesla CEO Elon Musk currently holds 23.5% of Tesla shares and Vanguard holds 6% of Tesla shares. Musk has sold a sizable portion of his Tesla stake since late 2021, in part to gain a stake in Twitter, the social networking giant, which he agreed to buy back for about $44 billion.
Tesla announced a similar year split for one stock in August 2020.
The company plans to hold its annual shareholder meeting online and with a limited number of invited shareholders in person at the new Tesla factory in Austin, Texas on August 4, 2022.
This is breaking news. Please check back for updates.
