Tesla sets August 25 as trading day for three-for-one share split

Tesla Inc said on Friday that it will begin trading in a three-for-one split on August 25 after the electric automaker’s shareholders approved the proposal at its annual meeting.

The EV maker’s shareholders voted on board recommendations on most issues at the company’s annual meeting on Thursday, including re-electing directors, approving a stock split, rejecting proposals focused on the environment and governance.

Chief Executive Elon Musk owns 15.6% of Tesla, according to Refinitiv data, after selling millions of shares last year.

Each shareholder of record on August 17 will receive a dividend of two additional shares for each share distributed after the close of trading on August 24, the company said.

The new share split comes two years after a five-for-one split helped bring the high-flying stock price down within reach of ordinary investors.

Although a split does not affect a company’s fundamentals, it can increase the share price by making it easier for a wider range of investors to own the stock.

Tesla shares, which debuted at $17 apiece in 2010, soared to more than $1,200 at the end of the year after the 2020 stock split, pushing the company’s market capitalization above $1 trillion.

Tesla shares, which ended Friday down 6.6%, are down about 18% this year.

At Thursday’s meeting, shareholders narrowly approved an advisory proposal that would expand investors’ ability to nominate directors, with 339.2 million votes for the proposal and about 319 million votes against.

A shareholder proposal requiring Tesla to annually report on its efforts to prevent racial discrimination and sexual harassment was rejected, 350.7 million votes to 310 million.