Tesla said on Friday (Aug. 5) that trading in its three-for-one split shares will begin on Aug. 25, after the electric vehicle manufacturer’s shareholders approved the proposal at its annual meeting.
Shareholders of the EV maker voted for council recommendations on most issues at the company’s annual meeting on Thursday, including director reelection, approval of a stock split, while rejecting environmental and governance proposals.
Chief Executive Elon Musk owns 15.6 percent of Tesla, according to data from Refinitiv, after selling millions of shares last year.
Any shareholder with a record August 17 will receive a dividend of two additional shares for each share held, which will be paid after close of business on Aug. 24, the company said.
The new stock split comes two years after a five-for-one split put the price of the high-flying stock within the reach of common investors.
While a split doesn’t affect a company’s fundamentals, it can drive the stock price up by making it easier for a larger number of investors to own the stock.
Tesla stock, which debuted in 2010 at $17 apiece, rose to over $1,200 by the end of the year after the 2020 stock split, pushing the company’s market cap above $1 trillion.
Tesla shares, which finished 6.6 percent lower Friday, are down about 18 percent this year.
At Thursday’s meeting, shareholders narrowly approved an advisory that would increase investors’ ability to nominate directors, with 339.2 million votes in favor and nearly 319 million votes against.
Shareholders’ proposal to ask Tesla to step up its efforts to prevent racial discrimination and sexual harassment annually was rejected, by 350.7 million votes against, compared to 310 million votes in favor of the proposal.