Tesla Files for 3-for-1 Stock Split for Affordability to Retail Investors

Image: 0xmilan/Imgur

Tesla (NASDAQ: TSLA) has announced the date for its annual shareholders' meeting. In addition to various details, the manufacturer has filed for another stock split—this time 3-1—which will make shares more affordable to retail investors.

On June 10, Tesla filed with the US Securities and Exchange Commission (SEC) about the date and details of the annual shareholder meeting. The company will host it on August 4, 2022, at 4:30 p.m. Central Time, both virtually via the Internet and in-person to a limited number of shareholders at Gigafactory Texas. Since there are many people who want to attend the event in person, Tesla will hold a random drawing. If you were a registered shareholder or beneficial owner as of June 6, 2022, you can apply for this draw.

In a statement, Tesla also announced that it would ask shareholders to approve a stock split after teasing the move earlier this year. The manufacturer will hold a shareholder vote to allow a 3-for-1 split of its common stock. The company indicated that its share price has risen about 40% since the last stock split and said it believes another split would “help reset the market price,” which will make them more affordable to retail investors and give employees greater flexibility in managing their capital.

The proposals scheduled to be voted on at the 2022 Annual Meeting are:

Tesla Proposals

• A Tesla proposal to elect two Class III directors listed in this proxy statement to serve for a term of three years, subject to the approval of Proposal Two, or until their respective successors are duly elected and qualified (Proposal One);
• A Tesla proposal for adoption of amendments to certificate of incorporation to reduce director terms to two years (Proposal Two);
• A Tesla proposal for adoption of amendments to certificate of incorporation and bylaws to eliminate applicable supermajority voting requirements (Proposal Three);
• A Tesla proposal for adoption of amendments to certification of incorporation to increase the number of authorized shares of common stock by 4,000,000,000 shares (Proposal Four);
• A Tesla proposal to ratify the appointment of PricewaterhouseCoopers LLP as Tesla’s independent registered public accounting firm for the fiscal year ending December 31, 2022 (Proposal Five);

Stockholder Proposals

• A stockholder proposal regarding proxy access, if properly presented (Proposal Six);
• A stockholder proposal regarding annual reporting on anti-harassment and discrimination efforts, if properly presented (Proposal Seven);
• A stockholder proposal regarding annual reporting on board diversity, if properly presented (Proposal Eight);
• A stockholder proposal regarding reporting on employee arbitration, if properly presented (Proposal Nine);
• A stockholder proposal reporting on lobbying, if properly presented (Proposal Ten);
• A stockholder proposal regarding adoption of a freedom of association and collective bargaining policy, if properly presented (Proposal Eleven);
• A stockholder proposal regarding additional reporting on child labor, if properly presented (Proposal Twelve); and
• A stockholder proposal regarding additional reporting on water risk, if properly presented (Proposal Thirteen).

© 2022, Eva Fox | Tesmanian. All rights reserved.

_____________________________

We appreciate your readership! Please share your thoughts in the comment section below.

Follow @EvaFoxU

Legal Disclaimer --

This article is for informational purposes only. You should not construe any such information or other material as an investment, financial, or other advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, or offer by Eva Fox, Tesmanian, or any third party service provider to buy or sell any securities or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.

Eva Fox holds zero shares of Tesla, Inc., and currently (at the time of this article's publishing) holds zero options or securities in Tesla Inc. and/or its affiliates.