Elon Musk’s Tesla announces stock split: All eyes on annual meeting now for the record date
Tesla stock split news is keeping the traders and investors in the stock market on a high. Tesla, Inc in a Form 8-K filing to US Securities and Exchange Commission on March 28, 2022 announced its plan to request stockholder approval at the upcoming 2022 Annual Meeting of Stockholders for an increase in the number of authorized shares of common stock through an amendment to the Company’s Amended and Restated Certificate of Incorporation in order to enable a stock split of the Company’s common stock in the form of a stock dividend.
How the share price of Tesla over the next few days reacts to the development as other details unfold remains to be seen. The record date and the split ratio of Tesla shares is expected to be announced in the annual meeting. Also, the quarterly earnings of Tesla will be closely watched in the results season ahead.
On the day of Tesla’s stock split news, the shares went up by almost 8 per cent, adding nearly $84 billion of market value and putting the stock back in positive territory for the year. Over the last 1-year, the stock is up by 64 per cent while on YTD basis, it is almost 3.5 percent.
Tesla with a market cap of nearly $1.14 trillion currently trades at around $1096.
“Tesla’s rise to the top had been nothing short of incredible,” holds StockApps’ Edith Reads. The finance expert adds, “It has risen from a fledgling startup in 2003 to now becoming the most valuable carmaker globally. It’s also among a small group of companies that have attained and maintained a trillion-dollar valuation.”
“Data shows that the firm took 11 years to reach the $1T valuation. Only Facebook has achieved the milestone in a shorter time. The social media giant took only 9 years to get there. The feat is more admirable when you consider how long other American trillion-dollar capped firms took to reach it. Alphabet, Google’s parent company, took 21 years to get that valuation. Amazon took 24 years to get it. Similarly, Apple and Microsoft took 42 and 44 years, respectively, to attain that,” adds Reads.
Tesla’s Board of Directors has approved the management proposal, but the stock dividend will be contingent on final Board approval.
The Company’s definitive proxy statement relating to the Annual Meeting will include additional details regarding the Amendment, as well as the record date, date and location of the Annual Meeting.
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