A three-way stock split would make Tesla’s stock more cheap

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A three-way stock split, proposed by Tesla, would lower the price of the company’s stock for potential investors.

On Friday, Tesla filed with the US Securities and Exchange Commission a list of items it intends to bring up at its August 4, 2022 shareholder meeting. When it comes to Tesla’s stock price, it has risen by 43.5 percent since the company’s previous stock split, which took place back in August 2020, and it wants to “reset” the stock price in that manner.

Even though our workers have greatly benefited from this value appreciation throughout the years, we want to ensure that all employees, no matter when they join the firm, have access to the same benefits.” The company claims.

When it comes to Tesla’s stock price, the company sees this as an opportunity to “reset.”

The stock of the electric vehicle manufacturer finished Friday at $696.69 a share, down 22% from the day before and valued at over $721.8 billion in total. As a result, ordinary investors utilising services like Robinhood may only hold a percentage of the company’s stock at these exorbitant prices.

On that day, Tesla stockholders would get two more shares of common stock if the stock split is implemented. Stock splits don’t faze institutional investors since the stock’s value usually stays the same.

A stock split, Tesla claims, would “help reset the market price of our common stock” and “enable our workers to have more control over their ownership,” so “helping maximise shareholder value.” We think the Shares Split will also make our common company more accessible to our retail shareholders, since retail investors have demonstrated a significant degree of interest in our stock.”

Also, Elon Musk’s takeover attempt for Twitter co-founder Larry Ellison will not be up for re-election to Tesla’s board of directors, according to the company. However, Tesla has no plans to replace him. When it comes to seats, instead, the board will be downsized from eight to seven.

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