Tesla (NASDAQ:TSLA) stock is on the move Monday as investors look into its stock split history alongside a new announcement from the company.
The news from Tesla this morning are plans for a stock split. The electric vehicle (EV) company announced this via a Tweet and followed it up with an SEC filing. In that filing, it notes the split will come in the form of a stock dividend.
Tesla points out that its Board of Directors has already approved the stock split suggested by management. Now the company is waiting for shareholders to approve the stock split. A vote on the matter will take place at its 2022 Annual Meeting of Stockholders.
There are still some details about the stock split plans that we don’t know about. That includes when the potential split could take place, as well as the ratio that would be used to split shares of TSLA stock.
Today’s news also has some wondering about the stock split history of Tesla stock. In the company’s decade of public trading, it’s undergone one other stock split. That took place in August 2020 and saw the EV company split one share into five shares.
So why exactly is Tesla considering a stock split? The likely reason is that it wants to open its shares up to a larger pool of investors. A split lowers the price of the stock and increases the total amount in circulation, all without hurting the company’s market capitalization.
TSLA stock is up 5.4% as of Monday morning.
Investors seeking more stock market news are in the right place!
We’ve got all the hottest stock news that traders need to know about for Monday! Among that is what has Kaixin Auto (NASDAQ:KXIN) stock up, the news hitting shares of Sea Limited (NYSE:SE) stock, as well as this morning’s pre-market stock movers. You can find all of this at the following links!
More Stock Market News for Monday
- Why Is Kaixin Auto (KXIN) Stock Up 40% Today?
- Why Is Sea Limited (SE) Stock in the Spotlight Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Monday
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.