The Clap
Tesla announced it is seeking shareholder approval to split its shares, which led to a surge in its shares.
Details
Tesla’s board of directors (BoD) already approved it, & will hold a shareholder vote on the proposal at its annual meeting. Shares of the company jumped almost 6% yesterday on the news.
Tesla is following in the footsteps of Amazon & Alphabet, which have both split their stocks in recent months.
Why this matters
Stock splits increase the total number of shares without changing the company’s capital, making the share price cheaper & more accessible to retail investors.
This isn’t Tesla’s first stock split. The company last announced a 5-for-1 stock split back in 2020. Since then, Tesla’s stock has more than doubled in value.
