Tesla juices consumer discretionary ETFs on stock split plan
The move would mark Tesla's second stock split in two years, following a 5-to-1 split in August 2020.
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Consumer discretionary exchange-traded funds tied to Tesla moved higher on Monday as the electric vehicle maker plans to ask shareholders to authorize additional shares at its upcoming annual meeting for the company's second stock split in two years.
Tesla plans to ask shareholders to authorize additional shares at its upcoming annual meeting for the company's second stock split in two years. (AP Photo/David Zalubowski, File / AP Newsroom)
"Tesla’s Board of Directors has approved the management proposal, but the stock dividend will be contingent on final Board approval," the company stated in a filing with the Securities and Exchange Commission.
TESLA ANNOUNCES PLANS FOR A SECOND STOCK SPLIT IN TWO YEARS
The Consumer Discretionary Select Sector SPDR (XLY) rose nearly 3%, while the Fidelity MSCI Consumer Discretionary Index (FDIS) climbed and the Vanguard Consumer Discretionary gained 2.3%. Meanwhile, the Direxion Daily Consumer Discretionary Bull 3x Shares ETF (WANT) surged 8%.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| XLY | CONSUMER DISCRETIONARY SELECT SECTOR SPDR ETF | 214.94 | +0.32 | +0.15% |
| FDIS | FIDELITY COVINGTON TRUST MSCI CONSUMER DISCRETIONARY | 94.29 | +0.34 | +0.36% |
| VCR | VANGUARD WORLD FUND CONSUMER DISCRETIONARY ETF | 362.68 | +0.75 | +0.21% |
| WANT | DIREXION SHARES ETF TRUST DAILY CONSUMER DISCRTR BULL | 49.02 | +0.34 | +0.71% |
Tesla makes up 19.1% of XLY, 13.4% of FDIS, 13.3% of VCR and 12.89% of WANT, according to ETFTrends.com.
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Tesla, which did not specify when the stock split would take place or what the ratio of shares would be, closed up 8% at the end of Monday's trading session. The company previously approved a 5-to-1 stock split in August 2020.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 339.64 | -2.39 | -0.70% |
While Tesla shares have fallen 9% year-to-date, the company has a market capitalization of more than $1 trillion.