Tesla wishes to break up its stock so it can pay back a inventory dividend to shareholders, according to a filing Monday.
The Securities and Trade Fee filing explained the electrical car maker will check with at its once-a-year shareholders conference “for an maximize in the selection of approved shares of prevalent stock … in purchase to help a inventory split of the Firm’s widespread inventory in the form of a inventory dividend.”
A inventory dividend is a dividend paid to shareholders in the sort of more organization shares instead of income. These dividends do not affect the price of a firm, but they dilute its share price tag.
In other text, if there is a 6-for-1 split, buyers will get a stock dividend of 5 shares for each a single share of Tesla they have. This would be a a single-time celebration.
Tesla’s shares were up extra than 6% at about $1,075.
The company previous split its inventory in August 2020. The shares have additional than doubled due to the fact that 5-for-1 break up took outcome on Aug. 31, 2020.