Tesla stock has soared 837% in the last five years, meaning its ট্যাগ 696.69 price tag keeps it out of the reach of many small investors.
However, this could become more achievable as the company announced plans for a 3-for-1 stock split in a proxy statement filed with the US Securities and Exchange Commission.
As noted by CNBC, the move would see the company issue four billion new shares of common stock and holders receive three shares for each share they currently own. The move would help reduce Tesla’s stock price, and the company noted that prices have risen 43.5% since their last stock split in August 2020.
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Tesla added: “We believe the stock split will help us reset the market value of our common stock, so that our employees have more flexibility in managing their equity, which, in our view, can help stockholders maximize their value.” In addition, as retail investors have expressed a high level of interest in investing in our stock, we believe that the stock split will make our common stock more accessible to our retail shareholders. “
The Tesla board has already approved the move, but it is subject to stockholder approval. The board is recommending that shareholders vote yes to the proposal, and if approved, the company would follow Amazon, which had a 1-for-20 split earlier this week.
In other news, Tesla CEO Elon Musk has 265,488,606 shares representing 23.5% of the company.