Tesla Boss Elon Musk Announces 3-For-1 Stock Split

Abdul Ghani

The stock split is intended to offer small investors in particular an opportunity to invest in the company. With the US electric car manufacturer Tesla, another large US company has announced a stock split to make its shares cheaper for small investors. Tech billionaire Elon Musk's company announced on Friday after the US market close that its board of directors would agree to a 3-to-1 split if approved by shareholders at the upcoming annual general meeting. This will take place on August 4th and the project is already firmly on the agenda.

With the planned 3-to-1 split, a shareholder would receive 2 additional shares per share, while the value of each share would only be one-third.

Many large US corporations rely on stock splits

Tesla had already announced in March that it was planning a split. But it was unclear in what proportion. Stock splits don't actually change a company's stock market value, but they do lower the price per share. The paper can thus become more attractive, especially for small investors, even if many brokers are now already offering to buy shares proportionately.

Nevertheless, the measure is very popular with companies: This year, other large US corporations such as Google's parent company Alphabet and Amazon also announced stock splits.

Price down 40 percent this year

Tesla's shares had recently come under a lot of pressure in the general downturn in the stock markets. The price has fallen more than 40 percent since the highs of last November. Tesla shares closed at $696.69 on Friday. The announcement of the share split initially caused slight price gains after the trading session.

Tesla also announced in the announcement that Oracle founder Larry Ellison wanted to step down from his board position.

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Member Of Freelancers Union (USA), Freelance Writer!, and Digital Creator. Ghani Mengal is an enthusiast Freelance blogger and digital marketer. His content has been published and featured on many popular blogs, websites, and publications. Including TeelFeed, LifeHack.org, Data-Driven Investor, TextSniper, Scientific Publication The Predict, The Startup, The Ascent, Heart Affairs, Illumination, And The List goes on.

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