Tesla (NASDAQ: TSLA) announced August 25 as the trading day when 3-for-1 split shares will begin trade. This follows up after the manufacturer's shareholders approved the offer at its annual meeting.
Tesla shareholders voted to approve the 3-for-1 share split at the annual shareholder meeting on August 4, 2022, held at Giga Texas. The manufacturer sought to make its shares more affordable, easier to manage, and more attractive to an even wider range of investors.
Each shareholder registered as of August 17 will receive a dividend of two additional shares per 1 share held. The shares will be distributed after the close of trading on August 24, the company said.
This split is positive for future investors who can afford to buy a whole share at a lower price. People are more likely to buy stocks when they can afford to buy the whole share rather than just part of it. In addition, stock splits give employees who receive stock option awards greater flexibility in managing their capital.
© 2022 by Eva Fox | Tesmanian. All rights reserved.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.