After shareholders of the electric vehicle manufacturer adopted the plan during its annual meeting, the trading of Tesla Inc.’s three-for-one split shares will start on August 25.
On most matters, including re-electing directors and accepting a stock split, shareholders of the EV manufacturer supported board recommendations at the company’s annual meeting on Thursday while rejecting suggestions centered on governance and the environment.
Elon Musk, Tesla’s CEO, owns 15.6% of the company. According to the corporation, a dividend of two extra shares will be given to each stockholder whose shares were on record on August 17 and will be issued after the market closes on August 24.
The latest share split occurs two years after a five-for-one split helped lower the high-flying stock’s price so that average investors could afford it.
Although a split has no impact on a company’s fundamentals, it may increase the share price by enabling a wider spectrum of investors to purchase the stock.