Tesla (NASDAQ: TSLA) is evidently looking to lower its trading price yet again after the wild price appreciation it has seen over the last two years. The move follows a similar action conducted by the company in 2020.
A filing made by the company this morning with the SEC indicated that the company is looking for shareholder approval at its oncoming Annual Meeting to increase the number of authorized shares of the company’s common stock. The request is apparently being made to enable a stock split, which is to come in the form of a stock dividend.
Further details on the proposed stock split were not provided, with the company simply stating that it will be contingent on final board approval.
Previously, the company announced a 5 for 1 stock split in August 2020, which was completed in that same month. The value of the company rose roughly 80% between the announcement and the implementation of the split – because evidently the split marked a fundamental improvement in the firms operations somehow.
Tesla last traded at $1,010.64 on the Nasdaq, and is currently up 6.15% in pre-market trading on the news.
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Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
