Busy Few Days For Tesla: Stock Split Plan, Factory Halt, Musk Eyeing Social Media
Split for Stock Dividend
Tesla (TSLA) submitted a filing to the SEC yesterday indicating the company wants to split its stock and then pay a stock dividend. Unlike cash dividends, stock dividends grant shareholders additional shares. A vote will be held at the annual shareholder’s meeting over whether to increase the authorized shares of common stock, which is necessary to make the split possible.
The last time Tesla split its stock was in August 2020, and its share price has doubled since then. While 2022 has seen the stock struggle at times, Tesla experienced significant share price gains throughout the pandemic. The stock has also risen annually for five straight years.
As word of the potential stock split circulated, Tesla announced vehicle production was being suspended at the company’s factory in Shanghai for at least one day. This came in response to a lockdown instituted by Chinese authorities in order to conduct COVID-19 testing.
Shanghai is China’s financial hub, and Tesla also had to halt production for two days earlier this month due to COVID-19 restrictions. Meanwhile, CEO Elon Musk says he’s contracted the coronavirus for the second time. Musk previously disclosed that he and his family are vaccinated, and his symptoms are reportedly mild at present.
Musk’s Social Media?
As last week drew to a close, before Tesla had shared its stock split plan or announced the suspended production, Musk generated a buzz talking about social media. He posted on Twitter (TWTR) over the weekend arguing the platform doesn’t permit free speech.
A follow-up tweet asked if a new platform is needed, and Musk admitted he’s given “serious thought” to the idea of creating his own social media network. The Tesla and SpaceX billionaire has clashed with SEC regulators ever since he asked his followers if he should sell his stock, which sent the electric vehicle maker’s share price lower. Musk has claimed the SEC is harassing him.
It was certainly a busy weekend for Musk, who wants to make the Tesla split happen while navigating ongoing challenges and new possibilities.
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