Tesla has just submitted its annual power statement to the SEC and revealed that it plans a three-by-one division of shares, and that board member Larry Ellison has no plans to run for re-election.
Shares of Tesla rose more than 1 percent outside of hours, after closing at $ 696.69 on Friday.
In the presentation, the company wrote about the proposed split of shares: “Our success depends on attracting and retaining excellent talent” and that “highly competitive compensation packages”, which offer each employee a option to receive capital, they helped Tesla to do so. “We believe that the stock division would help restore the market price of our common stock so that our employees have more flexibility in managing their assets.”
A stock split is aesthetic and could mean that smaller investors feel they can pay for the shares, but those investors are tiny compared to major institutions. Many brokers already offer investors fractional trading, allowing small investors to buy a portion of seemingly expensive shares.
Elon Musk, during an event at SpaceX headquarters in Hawthorne, California, USA, on Thursday, October 10, 2019.
Bloomberg / Getty
In his 2022 power presentation, the electric vehicle and renewable energy business also revealed that board member Larry Ellison currently owns 1.5% of Tesla shares. Ellison plans to step down as a member of Tesla’s board of directors, but the presentation did not say who could replace him.
The presentation also says that Tesla CEO Elon Musk currently owns 23.5% of Tesla shares and Vanguard owns 6% of Tesla shares. Musk has sold a sizeable stake in Tesla since late 2021, in part to bolster a stake in Twitter, the social media giant he agreed to acquire for about $ 44 billion.
Tesla announced a similar five-to-one stock split in August 2020.
In thirteen different proposals suggested by shareholders, Tesla is asked to examine and reveal more about its own: anti-harassment and discrimination efforts, pressure practices, supply and labor chains, and details about its own water use and water-related climate impacts and risks. .
The company plans to hold its annual shareholder meeting online and with a limited number of shareholders invited to attend in person at the new Tesla plant in Austin, Texas, on August 4, 2022.