Tesla will seek investor approval for stock split.
Tesla stated on Monday that it would seek investor approval to expand its share count to permit a stock split. It will be in the form of a dividend, sending its stock up 5% before the bell.
The board of directors has authorized the proposal, and shareholders will vote on it at the annual meeting.
If approved, the stock split would be the most recent following a five-for-one split in August 2020, making Tesla shares more affordable for staff and investors.
Alphabet, Amazon.com, and Apple have recently split their shares to make them more accessible, following a pandemic-induced rise in technology equities.
Telsa, which began trading at $17 per share in 2010, is worth more than $1,000. Since the stock split in 2020, they have increased by 128 percent.
Also, it is pushing the company’s market capitalization to over $1 trillion and making it the largest automaker in the United States by that metric.
Tesla’s electric cars are among the most popular. The company has delivered roughly a million cars each year while ramping up production by opening new plants in the U.S. and Europe.
However, the company is starting to confront competition as traditional automakers like Ford (F.N.) and startups like Rivian (RIVN.O) enter the market, providing consumers with various new choices.