Tesla stock split proposal to headline Texas annual meeting

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Tesla Inc will hold its annual general meeting on Thursday, at which the world’s most valuable automaker’s proposal for a second stock split in as many years will be at the center of investors gathered in Austin, Texas.

Also listed are shareholder proposals on corporate governance-related topics, including endorsing employees’ right to form a union and asking the company to report annually on its efforts to combat racial discrimination and sexual harassment. to prevent. (https://bit.ly/3oT7yGU)

The meeting comes as Tesla chief Elon Musk and Twitter Inc are battling it out in a legal battle after the world’s richest person said last month that he had abandoned a $44 billion takeover bid for the company.

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Musk owns 15.6 percent of Tesla, according to Refinitiv data, after selling millions of shares over much of the past year.

Tesla first announced its plan to seek investor approval to increase its number of shares in March, two years after a five-to-one split put the price of the high-flying stock within the reach of common investors. Tesla is now proposing a three-to-one distribution.

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Tesla stock, which debuted at $17 apiece in 2010, soared to over $1,200 late last year after the 2020 stock split, pushing the company’s market cap above $1 trillion.

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.

Tech heavyweights Alphabet Inc, Amazon.com Inc and Apple Inc have also announced stock splits in the recent past.

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Tesla shareholders will also vote on the board’s proposals to shorten its directors’ terms from three to two years and to re-elect Ira Ehrenpreis and Kathleen Wilson-Thompson.

Proxy advisory firm Institutional Shareholder Services (ISS) last month advised Tesla investors to vote against the two nominees.

The annual meeting begins at 5:30 PM ET (2130 GMT).

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