Tesla Inc.said it would request shareholder approval at its annual meeting for an increase in the number of shares of the electric-car maker to enable a stock split,
Though the company didn’t specify when such a split would take place or what the ratio of shares would be.
- Tesla shares closed Monday at $1,091.84, up 8%.
The auto maker typically holds its shareholder meeting in the fall.WSJ reports
Tesla is currently authorized to issue 2 billion shares. As of Jan. 31, the company had 1.03 billion shares outstanding.
The move comes after Amazon.com Inc, this month said it would split its stock 20-for-1. Google parent Alphabet Inc. said on Feb. 1 that it would enact a 20-for-1 stock split, giving shareholders 19 more shares for every one they own.
*Tesla Bloomberg Chart
Stock splits change the stock price,
not the total value of an investor’s holding, although they have a history of generating a short-term rally in a company’s stock price.
The proposal comes almost two years after Tesla enacted a 5-for-1 stock split as shares of the company run by Elon Musk rode to new heights.
Tesla, at the time, said it was making the move “to make stock ownership more accessible to employees and investors.”
Tesla shares surged last year as the company’s vehicle deliveries rose strongly despite global supply-chain constraints, and its profit advanced, too.
The rally has turned Mr. Musk into the world’s richest person, according to the Bloomberg Billionaires Index.
Tesla shares are still up more than 60% over the past year, though.
Tesla’s stock-split announcement comes as the company has temporarily idled its factory in Shanghai ( amid wider lockdown measures in China)