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Tesla Inc (NASDAQ: TSLA) will split its stock on Wednesday after markets close, becoming the latest mega-cap company to divide its highly-priced shares this year to make them more accessible to investors.
Investors in Elon Musk’s electric vehicle company will get two additional Tesla shares which will begin trading on a split-adjusted basis from Thursday.
Tesla shares went up almost 2.5% Wednesday morning.
Although the split will make the shares of the carmaker more affordable to retail investors, those shareholders are minuscule compared with institutional investors, and fractional shares were already available to smaller investors.
In a proxy filing earlier this year proposing the new split, Tesla wrote that the move was primarily intended to help the company “offer every employee the option of receiving equity” and help Tesla “reset the market price” of its common stock to give employees “flexibility in managing their equity.”
Investors will receive two additional shares of Tesla for each one they already owned as of August 17, 2022.
Tesla’s last stock split, on a 5-for-1 basis, was implemented in August 2020.
Picture Credit: Al Jazeera
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