Tesla to split its stock so it can pay a stock dividend; shares gain

According to a filling on Monday, 28th March 2022, Tesla wants to split its stock so it can pay a stock dividend to its shareholders.

The security and exchange commission filling said the electric car maker will ask its annual shareholders meeting “for an increase in the number of authorized shares of common stock in order to enable a stock split of the company’s common stock in the form of a stock dividend.

Shares were up 4.5% in premarket trading to about $1,055.99.

Telsa last split its stock in August 2020. The Stock has more than doubled since that 5-for-1 stock split took effect on August 31, 2020.

The news comes as Tesla shares have struggled this year, slipping 4.4% for 2022 through friday’s close.

Share of Telsa have also risen in each of the last five years.

The move also follows as Bloomberg news report that Tesla will halt production in its Shanghai factory due to covid-19 lockdown in China.

Source: Cnbc.com

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