Tesla intends to conduct a three-for-one stock split and that board member Larry Ellison will not seek re-election. These were revealed in its annual proxy statement that the company filed with the SEC.
Tesla shares were up more than 1% after hours, having ended at $696.69 on Friday.
In the filing, the business stated that “our success depends on attracting and maintaining exceptional personnel,” and that “very competitive compensation packages,” which allow every employee the possibility to obtain ownership, assisted Tesla in doing so. “We believe that the Stock Split will assist reset the market price of our common stock, giving our employees more flexibility in managing their equity.”
A stock split is merely ornamental, and it may imply that smaller investors believe they can afford the shares, but these investors are insignificant in comparison to major institutions. Many brokerages currently provide fractional trading, which allows small investors to purchase a portion of seemingly pricey equities.
The electric vehicle and renewable energy company also revealed in its 2022 proxy filing that board member Larry Ellison now holds 1.5 per cent of Tesla shares. Ellison intends to step down as a member of Tesla’s board of directors.
According to the report, Tesla CEO Elon Musk presently owns 23.5 per cent of Tesla stock, while Vanguard owns 6 per cent of Tesla stock.
Musk has sold a significant portion of his Tesla assets since late 2021, in part to fund a stake in Twitter, the social networking company he agreed to acquire for approximately $44 billion.
In August 2020, Tesla announced a similar five-for-one stock split.
Tesla is being urged to study and publish more about its anti-harassment and discrimination initiatives, lobbying methods, supply chains and labour, and specifics regarding its own water use and water-related climate impacts and hazards in thirteen different shareholder recommendations.
On August 4, 2022, the firm intends to have its annual shareholder meeting online, with a restricted number of shareholders invited to attend in person at the future Tesla factory in Austin, Texas.
(Adapted from FinancialExpress.com)