Tesla shares rose sharply on Monday after the electric car maker announced it would conduct a stock split, the second time it has done so in two years.
In documents presented to regulators and via Twitter, the company announced that it will ask at its next meeting of its board of directors permission to increase the number of authorized shares, in order to split the shares in the form of a dividend.
Its shares are up 5% at the start of the trading session.
The company’s stock has been skyrocketing recently, having risen more than 60% in the past year. Tesla stake is currently worth more than $1,000.
And the company is growing. It recently opened its first factory in Europe. The plant, in Germany, will employ 12,000 people and produce 500,000 cars a year.
“Given Tesla’s rapid rise, it is not surprising that the company now wants to split its stock, especially now that demand for electric vehicles is increasing and the company has opened plants in Berlin and Austin,” Tesla insider Dan Ives told Wedbush Analytics. company.
Tesla Inc. has warned. that the measure has been initially approved but still requires Board approval.
Tesla split its shares fivefold in September 2020, a day after the company announced it would sell up to 5 billion shares. Just three months later, the company announced that it would conduct another share sale to raise $5 billion.
Tesla is one of the many technology companies that have soared in value lately that they are inaccessible to most investors.
“We view the Tesla movement as a smart strategic move that will act as a catalyst for future stocks,” Ives wrote in a report.
In documents filed with the US Securities and Exchange Commission (SEC, for short), Tesla said it will provide more information, including the location and date of its next shareholder meeting, in its next statement with the regulatory agency. .
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