Tesla files for a three-way stock split to make its shares more affordable

Illustration by Alex Castro / The Verge

The company wants shareholders to approve a three-way stock split in order to make the company's shares more affordable for buyers.

The request is included in a list of provisions that will be brought up at the shareholder meeting. Since the last stock split in August 2020, the company's stock price has gone up 43.5 percent.

While this value appreciation has led to our employees benefiting enormously through the years, we want to make sure all employees have the same advantages.

The electric car maker's stock closed on Friday at $686.69 a share, down 22 percent from the previous day, and at a total market valuation of more than $700 million. It is hard for retail traders to own more than fractional shares of the company.

Two additional shares of common stock would be given to shareholders if the stock split went into effect. The value of the stock tends to stay the same as institutional investors are mostly neutral on stock splits.

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, all of which, in our view, may help maximize stockholder value, according to the company. The stock split will make our common stock more accessible to our retail shareholders as retail investors have expressed a high level of interest in investing in our stock.

Larry Ellison will not be up for re- election to the board of directors at the time of the election, according to the company. He won't be replaced byTesla, they don't plan on that The number of seats will be reduced.