Tesla’s investors cleared the way for the company to complete its second stock split in about two years.
Musk’s electric-vehicle maker Tesla, whose stock price has roughly tripled in the past two years, approved a 3-for-1 stock split that the company has said is designed to make ownership more accessible to employees and individual investors.
Musk’s Tweet on shareholder voting process
Still time to vote! https://t.co/ZbFWv0pkgG
— Elon Musk (@elonmusk) August 1, 2022
The move wouldn’t affect the company’s market value, which topped $970 billion as of Thursday, the day when the decision is made.
Tesla generated $2.3 billion in profit for the period, ahead of Wall Street’s expectations but below its record quarterly profit of $3.3 billion in the first three months of the year.
An extended shutdown at Tesla’s Shanghai assembly plant, paired with global supply-chain disruptions and labor shortages weighed on results.
Chief Financial Officer Zach Kirkhorn said that,
Company’s July earnings call that Tesla was still aiming for 50% vehicle-delivery growth this year over 2021
Mr. Musk has previously used the company’s annual meeting as a platform for corporate announcements. Last year he said Tesla was moving its headquarters to Texas.
- Tesla shares are up over 30% since announcing the 3:1 split in early June
While the news of Tesla’s 5:1 stock split roughly two years sent shares over 70% higher in the 20 days following the announcement.