Elon Musk-run Tesla has asked its shareholders to approve a three-way stock split that would make its stock more affordable.
Tesla’s Stock Has Gained 43.5 Percent Since the Company’s Last Stock Split in August 2020
“The primary purpose of the authorized share modification is to facilitate a 3-for-1 split of our common stock in the form of a stock dividend,” the company said in a fresh US SEC filing late Friday.
“As of June 6, 2022, we have 1,036,390,569 shares of common stock outstanding and the current number of authorized shares of our common stock is 2,000,000,000, which is insufficient to effect a stock split,” the electric car maker said.
If the stock split takes effect, Tesla shareholders will receive two additional shares of common stock on that date.
Tesla also revealed that Oracle co-founder and CTO Larry Ellison would not be up for re-election to its board of directors.
“In June 2022, Class 3 Director Lawrence J. Ellison determined that he would not stand for re-election to the Board when his current term ends at the 2022 Annual Meeting,” the company said.
He added, “The Board currently expects to reduce the number of Board seats to seven at the end of Ellison’s term at the 2022 Annual Meeting, and therefore, shall not collect votes or proxy for election of more than two Board seats.” can be done.”
Tesla said the stock split will help reset the market value of its common stock so that “our employees will have more flexibility in managing their equity, all of which, in our view, can help maximize stockholder value.” “
In a relief to Tesla shareholders, Elon Musk has committed to provide an additional $6.25 billion in equity financing for his $44 billion Twitter acquisition, bringing his total equity commitment to $33.5 billion.