Tesla just filed its annual proxy statement with the SEC and revealed it plans a three-for-one stock split, and that board member Larry Ellison does not plan to stand for re-election.
Shares of Tesla were up by more than 1% after-hours having closed at $696.69 on Friday.
In the filing, the company wrote of the proposed stock split, “Our success depends on attracting and retaining excellent talent,”
“We believe the Stock Split would help reset the market price of our common stock so that our employees will have more flexibility in managing their equity.”
A stock split is cosmetic and could mean that smaller investors feel they can afford the stock,
Many brokerages already offer investors fractional trading, allowing small investors to buy a slice of seemingly expensive stocks.
The filing also says that Tesla CEO Elon Musk currently holds 23.5% of Tesla shares and Vanguard holds 6% of Tesla shares.