Recently, Tesla filed a document with the U.S. Securities and Exchange Commission (SEC) announcing that the 2022 shareholders meeting will be held on August 4 (U.S. time) at its Texas super factory, where shareholders will vote on 13 proposals. Among the proposals, Tesla announced in the fourth proposal that the company plans to split its shares at a 3-to-1 ratio.
Tesla said the potential stock split would provide greater flexibility for employees to manage their equity and also help reset the market price of Tesla stock, making it easier for ordinary people to buy shares.
This is Tesla's second stock split in two years. in August 2020, Tesla announced a 5-for-1 stock split, on which Tesla shares had soared, rising rapidly from less than $280 on Aug. 11, 2020, to nearly $500 at the end of August (all share prices are ex-weighted). At the end of that year, Tesla's share price rose further to over $700.
In addition, Tesla this time plans to vote on a proposal for an annual report on anti-harassment and discrimination at work at the shareholder meeting, and whether to allow employees to form or join a union.
Tesla CEO Musk has been opposed to employees forming unions. in 2018, Musk had said in public channels that employees' stock options would be cancelled if they formed a union. In March, Musk again sarcastically criticized the United Auto Workers (UAW), saying that the UAW has stolen millions of dollars from workers while Tesla has made many workers “millionaires” through stock grants.
Leave a Reply