Tesla Is Ready For The Second Split Of The Stock From 2020

Tesla shares rose sharply Monday following the announcement by the electric car manufacturer that it would be splitting its stock in two years. In a regulatory filing and a tweet, the company stated that it will request an increase in its authorized shares at the annual shareholders meeting in order to split the stock as a dividend

Tesla Is Ready For The Second Split Of The Stock  From 2020

NEW YORK, (AP) -- Tesla shares rose sharply Monday following the announcement by the electric car manufacturer that it would be splitting its stock in two years.

In a regulatory filing and a tweet, the company stated that it will request an increase in its authorized shares at the annual shareholders meeting in order to split the stock as a dividend.

The opening bell saw shares jump more than 5%

Tesla shares have risen more than 60% in the last year, and they are now up by over $100. One share of Tesla's shares now costs more than $1,000

The company is expanding. The company opened its first European plant last week in Germany, a "Gigafactory" that employs 12,000 people and produces 500,000 vehicles per year.

Musk & Co. have been on a meteoric run, so it is not surprising that they are moving down the path to another stock split, especially with strong EV demand and the buildouts of the Austin Giga and Berlin Giga factories now on a glide track, stated Dan Ives, who works for Wedbush and follows Tesla.

Tesla Inc. stated that its board approved the proposal but that the dividend will be subject to final board approval.

Tesla is following other tech giants who have seen shares prices soar beyond the reach of most investors.

Ives stated in a research paper that Tesla's decision to follow the lead of Apple, Google, and Amazon and initiate its second stock split within two years is a smart strategic move that will help share prices go forward.

Tesla stated in a filing to the Securities and Exchange Commission that it will include additional information such as the date and location of its annual shareholder meeting in a upcoming proxy statement.

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