Tesla sets Aug. 25 as the trading day for the stock three-for-one

The logo of carmaker Tesla is seen at a branch in Bern, Switzerland October 28, 2020. REUTERS/Arnd Wiegmann

Aug 5 (Reuters) – Tesla Inc ( TSLA.O ) said on Friday that a three-for-one stock split will begin trading on Aug. 25 after the electric vehicle maker’s shareholders approved the proposal at its annual meeting.

The EV maker’s shareholders voted for board recommendations on most issues at the company’s annual meeting on Thursday, including re-electing executives, approving a stock split, while rejecting proposals focused on the environment and governance.

CEO Elon Musk owns 15.6 percent of Tesla, according to Refinitiv data, after selling millions of shares last year.

Each shareholder of record on Aug. 17 will receive a dividend of two additional shares for each share held, distributed after the close of trading on Aug. 24, the company said.

The new stock split comes two years after a five-for-one split that helped bring the high-yielding stock price out of reach for ordinary investors.

Although a split does not affect a company’s fundamentals, it could boost the stock price by making it easier for a wider range of investors to own the stock.

Tesla shares, which debuted at $17 each in 2010, rose to more than $1,200 at the end of the year after the 2020 stock split, pushing the company’s market capitalization above $1 trillion.

Tesla shares, which ended 6.6% lower on Friday, have fallen about 18% this year.

At Thursday’s meeting, shareholders narrowly approved an advisory proposal that would increase the ability of investors to appoint directors, with 339.2 million votes in favor of the proposal and nearly 319 million votes against.

A shareholder proposal requiring Tesla to report on its efforts to prevent racial discrimination and sexual harassment annually was defeated, with 350.7 million votes against to 310 million votes for the proposal. read more

Reported by Yuvraj Malik in Bangalore. Edited by Maju Samuel

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