In its annual proxy statement filed with the SEC, Tesla (NASDAQ: TSLA) CEO Elon Musk unveiled plans for a 3-for-1 stock split, as well as the forthcoming departure of board member Larry Ellison.
The 2022 proxy filing cited efforts to make Tesla shares more affordable for ordinary investors as the reasoning behind the stock split, because it would “help reset the market price of our common stock so that our employees will have more flexibility in managing their equity.” However, most trading houses and brokerages already offer partial stock purchases, allowing smaller investors the opportunity to hold what are otherwise pricey stocks.
The split follows an announcement made earlier this year by the company, when they initially broadcasted to the market that they would be considering proposing such a move at the annual meeting. The firm previously split its shares on a five for one basis in August 2020.
The documents also revealed that Tesla board member Larry Ellison, who currently holds 1.5% of the EV maker’s shares, will not run for re-election and will abdicate his duties. In the meantime, Musk still owns a sizeable 23.5% portion of Tesla, despite embarking on a sell-off in 2021 to shore up liquidity for his pending $44 billion acquisition of Twitter.
Information for this briefing was found via the SEC. 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.