Posted on 06/10/2022 6:04:16 PM PDT by American Number 181269513
Tesla just filed its annual proxy statement with the SEC and revealed it plans a three-for-one stock split, and that board member Larry Ellison does not plan to stand for re-election.
Shares of Tesla were up by more than 1% after-hours having closed at $696.69 on Friday.
In the filing, the company wrote of the proposed stock split, “Our success depends on attracting and retaining excellent talent,” and that “highly competitive compensation packages,” offering every employee an option to receive equity, helped Tesla to do that. “We believe the Stock Split would help reset the market price of our common stock so that our employees will have more flexibility in managing their equity.”
A stock split is cosmetic and could mean that smaller investors feel they can afford the stock, but those investors are minuscule compared to major institutions. Many brokerages already offer investors fractional trading, allowing small investors to buy a slice of seemingly expensive stocks.
In its 2022 proxy filing, the electric vehicle and renewable energy business, also revealed that board member Larry Ellison currently owns 1.5% of Tesla shares. Ellison plans to relinquish his duties as a member of Tesla’s board of directors.
The filing also says that Tesla CEO Elon Musk currently holds 23.5% of Tesla shares and Vanguard holds 6% of Tesla shares. Musk sold a considerable chunk of his Tesla holdings since late 2021, in part to shore up a stake in Twitter, the social networking giant he agreed to acquire for around $44 billion.
Tesla announced a similar five-for-one stock split in August 2020.
In thirteen different proposals suggested by shareholders, Tesla is being asked to examine and disclose more about its: anti-harassment and discrimination efforts, lobbying practices, supply chains and labor, and details about its own water use and water-related climate impacts and risks.
The company plans to hold its annual shareholder meeting online and with a limited number of shareholders invited to attend in person at the new Tesla factory in Austin, Texas on August 4, 2022.
Tesla Semi
Elon sold at the top. Now, they are diluting the share price. GLTA.
In thirteen different proposals suggested by shareholders,
Tesla is being asked to examine and disclose more about its:
anti-harassment and discrimination efforts, lobbying
practices, supply chains and labor, and details about its own
water use and water-related climate impacts and risks.
This kind of crap is what dogs producers.
Incorrect. You dilute when you authorize (and sell) more shares. Splits DO NOT change the dilution. The board has before it, to vote on an authorization for more shares (needed to split), but not many shares beyond what the split requires.
Therefore, no dilution.
Trust me, I have worked for 5 startups, i know stock games and dilution.
Didn't Musk say last week that at least 10% of the Tesla workforce was going to get laid off?
Was hoping for a larger number than three.
Actually he said 10% of salaried workers (managers). The number of plant workers will still grow a lot - maybe 10,000 to fully staff the Texas and Berlin factories
I was hoping for 10 to 1 but I can see the logic in having several splits over the course of 5 years rather than one big one.
Same here. I had previously heard a rumor of 20-for-1 (that would be crazy fantastic) but definitely not true. Was hoping for at least 5-for-1 like before which greatly increased my share count.
Elon sold because he needed cash to pay the taxes due on his option award. IRS doesn’t accept shares as payment.
It’s the same as exchanging a $20 for four $5s. But for some reason we all think that we are getting something for free.
Ugh.. I guess I can stop making fun of the Honda Ridgeline truck. Maybe people don’t know what a truck is for anymore.
In August 2020 the stock was rising due to rumors and was around $1,300+ when a 5-1 stock split was announced. 3 weeks later the stock split when it was just over $2,000....
It went up to about $880 by January 2021 after the split then fell back and then by Nov 2021 it was $1,144 then lost a lot. This past friday it was at $696+.
Will the announcement cause the stock to rise like the last one?
This coming week will tell. When the board approves I wonder if the stock will zoom up like it did the last time...? : )
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Tesla Inc on Friday proposed a three-to-one stock split.
Shareholders will vote on Tesla’s proposed stock split on Aug. 4. If approved, it would be the company’s first such action after a five-for-one split in August 2020.
I believe it will. Buy on the dip now. Over the next couple weeks it will rise above 800 and possibly 900. As for zooming, lots of unrelated unknowns that could stifle any zooming. Tesla company fundamentals are good and will only get better to end of 2022. If the economy were better, then Tesla stock would go to between 1200 to 1600 (pre-split price) by year-end. But because of unknowns (Biden?), it could stagnate around 900 pre-split price - still better than price now. I'll be buying some on Monday for long-time holding - because inflation eats value of cash.
Yeah. They were talking about a 20:1.
Niiiiice...
Amazon just did it.
I bought two and have 40 now.
Well, Amazon just did a 20 fer.
It wasn’t that out of the realm of possibility.
Well, hopefully even 3 will help you a lot now.
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