Tesla announces plans for a second stock split in two years
Tesla CEO Elon Musk has been vocal on the Ukraine-Russia conflict
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Tesla announced early Monday that it will ask shareholders to vote at this year’s annual meeting to authorize additional shares in order to enable its second stock split in two years.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 320.72 | +9.54 | +3.07% |
The electric car company said its board of directors approved a proposal to enable a stock split in the form of a dividend, contingent on final board approval. After the announcement, Tesla shares increased by almost 5% in premarket trading to $1,062 a share Monday, according to The Wall Street Journal.
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Tesla executed a five-for-one stock split in the summer of 2020 at a time when shares were trading upward of $2000 a pop months before the company entered the S&P 500 index fund, according to The Street. The plans unveiled Monday come after Amazon announced a proposed 20-for-one stock split and a $10 billion share repurchase plan earlier this month. Google’s parent company, Alphabet, revealed similar plans for a split earlier this year that will likely take place in July.
German Chancellor Olaf Scholz, left, talks to Elon Musk, Tesla CEO, at the opening of the Tesla factory Berlin Brandenburg in Gruenheide, Germany, Tuesday, March 22, 2022. The first European factory in Gruenheide, designed for 500,000 vehicles per year, is an important pillar of Tesla's future strategy. | AP Newsroom
Barron’s, a weekly magazine/newspaper published by Dow Jones & Company, reported on Friday that Tesla’s stock had risen by more than 30% in the last two weeks in its longest winning streak since January 2021. The company’s market cap rose above $1 trillion for the first time since January 2022.
Tesla founder and CEO Elon Musk has been vocal about the war in Ukraine and his second company, SpaceX, has been sending Starlink technology at the request of the Ukrainian government to keep civilians and officials online after Internet connectivity took a hit at the onset of the invasion last month. Tesla employees in Germany reportedly volunteered to help package materials to expedite delivery.
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Musk has also advocated for Germany to keep its nuclear power stations open and for the U.S. to increase domestic oil production, even despite any purported risk to his electric car company, in order to reduce dependence on Russian oil and gas, categorizing such reliance as a national security risk.
In what was considered a win for Tesla, the U.S. National Highway Traffic Safety Administration (NHTSA) announced Sunday that it will bring back sharp penalties for auto manufacturers whose vehicles do not meet fuel efficiency requirements for model years 2019 and beyond, Reuters reported.